In the spirit of alliances, this week marks the second year that over two dozen big wigs of the news-and-information industry – most notably reps from National Public Radio, Huffington Post, the Center for Investigative Reporting and the Wisconsin Center for Investigative Journalism – met to discuss the role of foundation giving to the health and well-being of the investigative journalism profession.

It’s no news to anyone that the state of nonprofit news organizations has been in danger, for the past two years: there has been the closing of two major newspapers (Seattle Post-Intelligencer and Rocky Mountain News), the bankruptcy of countless others, as well as massive layoffs of reporters and the closing of  many regional bureaus.

But if this week’s gathering of the minds is any sign of what is to come, the nonprofit news industry can breath a small sigh of relief… according to some rumblings in the media, the Nonprofit Investigative News Network was officially writ into action yesterday at the Pocantico Conference Center in NY. Their mission: “to aid and abet, in every conceivable way, individually and collectively, the work and public reach of its member news organizations, including, to the fullest extent possible, their administrative, editorial and financial wellbeing. And, more broadly, to foster the highest quality investigative journalism, and to hold those in power accountable, at the local, national and international levels.”

You can get more information on the group and see the full declaration of the network on their website, here.

We shall certainly keep our eyes peeled to see how the Nonprofit Investigative News Network fairs in its efforts. With journalism foundations cropping up left and right, there shouldn't be a lack of funds seeing its way into the hands of the nonprofit news orgs that are in need. Our only question is: how effectively those funds will be used? We challenge the steering committee of the Nonprofit Investigative News Network to rise to the call of effective social investing and take a hard look at managing the organizations performance in these difficult times.

President Obama is certainly doing his best to win over the nonprofit sector.  Based on his recent announcement there is a good chance he might succeed. 

As part of the Service to America Act, the President announced that the Act’s innovation fund will provide aid to the most promising nonprofits in the country - an initiative that is surely creating waves across the sector.  The White House innovation team will soon begin a nationwide tour (anyone else think this could be the sector’s equivalent to the Beatles landing stateside?) to discover the best nonprofits that are making the most impact.  In his announcement, the President said, “We'll invest in those with the best results, that are most likely to provide a good return on our taxpayer dollars ...” We couldn’t have said it better. 

Joining the President was Harlem Children’s Zone – which seems to be a favorite example of the White House these days.  They certainly know a thing or two about results and if more organizations aspire to be like them ... well, we our industry - and the country - might just be better off because of it.

Brendan of cashewman has an interesting post on the notion of useless charities– as in, with all the charities out there, it is important to consider the societal value of a charity before starting one just to, well, start one.  Brendan believes that there are three important questions one should ask before starting a charity – do I really want to actually change things or just make myself feel good, what are the root problems and is somebody already doing this better.  All valid questions and all valid points. 

With close to 1 million charities operating in the U.S. today, Brendan’s post is certainly thought-provoking.  For some reason, the notion of reducing the number of charities strikes fear in people.  Will less people be helped? Will the problem the organization is addressing strengthen?  Maybe and maybe so.  But we can’t help but point out that Brendan is missing one piece of the puzzle – and that piece might alleviate those fears. 

That piece is the Big Three (and were not talking about accounting firms here, people).  Data.  Measurement.  Evaluation.  Without ‘em, your organization is at sea without a compass.  With ‘em, you can determine your impact, demonstrate results and even secure more funding (believe us, we’ve seen it). What it comes down to is that the organizations that are providing true social value (ahem, can prove they provide social value) should be the ones to receive the resources.  We’ve said it before, only the strong can – and should – survive. 

We agree with Brendan – when it comes to charities, its not necessarily a case of the more, the better.  But the Big Three can make for better organizations — and maybe, just maybe, a better sector.

On June 24, the pilot episode of NBC’s new drama “The Philanthropist,” will air and I have to say that here at the ETOlutionist we are a little intrigued. For all intents and purposes, the fact that philanthropy is taking center stage on network television (albeit, again) is quite exciting. But at the same time, we can’t help but be a little skeptical of what might turn out to be the total “hollywoodization” of the philanthropic world. Not that the show isn’t based on the real life of entrepreneur-turn-humanitarian Bobby Sager, but he’s also not your average do-gooder either. Sure -- what donor, human services provider, volunteer doesn’t want to share the rush that they get to feel every day knowing that they are helping people with the rest of the world, right? But at that same time, real nitty-gritty philanthropy doesn’t involved major pyrotechnics, car chases and the chaos that will be seen in Wednesday’s episode.

So yes, while we commend the worlds renewed interest in giving back, we also want to make sure everyone’s taking a critical eye to the important issues like performance management, accountability and measuring effective outcomes.

An important issue facing nonprofits today is how to best prepare future leaders to take the reigns of your organization. As the baby-boomer generation starts quickly hitting the “go” button on their retirements, many nonprofits are left wondering how their younger counterparts will handle the pressures of nonprofit management.

If this is a hot topic around the water cooler at your organization, perhaps you should log on today for the Chronicle of Philanthropy’s live discussion, “Grooming the Next Generation of Nonprofit Leaders: an Intergenerational Discussion,” which starts at 12:00 EST.

On tap to speak on the topic is Naomi Christine Leapheart, a financial-literacy instructor at Operation Hope, a Los Angeles organization that aids minorities; Eric Stevens, a senior consultant at the Collins Group, a Seattle consulting company that serves nonprofit groups; and one of our favorite Alliance for Effective Social Investing members, Robert Egger, who is the founder of DC Central Kitchen, a food bank and culinary-training center for unemployed people.

Hope to see you there!

We sure hope so.

In case you missed it, the annual charitable giving survey from the Giving USA Foundation came out yesterday and the findings, frankly, are not surprising.

The survey found that charitable donations were down nearly 6% in 2008, the steepest decline in the survey’s 53 year history.  According to the survey, American individuals and institutions contributed just under $308 million in 2008 a drop from the $314 million donated in 2007.  While there was a decline, many experts have expressed that the drop wasn’t as high as expected.  And to further add to that shimmer of light at the end of the tunnel, many experts have also pointed out that, except for the record set in 2007, charitable giving in 2008 still outpaced years past.

So, what does this mean for 2009?  Jury is still out.  Last year’s numbers likely benefited from a steady stream of giving in the first part of the year (read: before the economy tanked).  While 2008’s numbers are certainly interesting, the real benchmark for just how big of an impact this recession has had on the industry will come next June.  

Until then, fingers crossed. 

The Bill and Melinda Gates Foundation is once again making the news. But this time it isn’t for the funds they are giving, but rather the ones they are receiving. It seems that despite the fact that the Foundation does not like receiving individual donations (they actually prefer if you donate directly to the funded organizations instead), it appears that Warren Buffet's philanthropic gesture of donating basically his entire life savings to the Gates Foundation back in 2006 has caused quite a stir in individual gifts to the organization over the past few years. According to their 2008 Annual Report which they released last week, the Gates Foundation raised just over $10.4-million from people whose names aren’t “Gates” and/or “Buffet” – wow! Further proof that with a high net worth comes great influence and responsibility.

Now, if only everyone who donated to the Gates Foundation would invest their time and money into organizations that measure their efforts to outcomes and effectively implement performance management metrics - THEN we’d REALLY be talking!

Tune in to hear from Andrew Niklaus, Chief Operating Officer at First Place for Youth, on how performance management is applied to his organization.  Andrew also shares his thoughts on what success looks like, an inspiring story of such success, as well as the connection between outcomes and measurement and funding.

This week’s Chronicle of Philanthropy is taking a deeper look into losses taken by many nonprofits when it comes to their endowments. According to a survey conducted by the folks at the Chronicle, endowments of the nation’s biggest charities and foundations have lost more than $46-billion since 2007. Ouch.  The good news is that the survey also showed that many organizations are on the mend, and current first quarter results look promising. However, the Chronicle is also quick to point out that many endowment managers aren’t turning a blind eye with what may be signs of good fortune on the horizon – in fact, many are looking to cash and bonds to help safeguard their funds should the current state of the market be deceiving, despite previous assumptions that these low-yielding kinds of options weren’t a sound investment for keeping your organization in the black.

Here at the ETOlutionist we’re curious as to what you all have to say about this. Has your organization found the special sauce to managing an endowment in this bear market? Any tips for other organizations feeling the crunch? Let us know!

The Harlem Children’s Zone, “…a holistic system of education, social-service and community-building programs aimed at helping the children and families in a 97-block area of Central Harlem,” came under the national spotlight this week, with President Obama pointing to it as a model worthy of replication in 20 cities across the country.

We have had the privilege to work with HCZ and want to take this opportunity to congratulate them on this distinguished recognition they have certainly earned.

In today’s economy, many non-profits are under fire, losing funding and struggling to stay afloat. HCZ finds itself in quite a different situation. Its commitment to performance management has likely played a large role in its success today.

The organization’s well-defined goals are part of a 10-year strategic plan created in the late 90’s. The plan, according to HCZ’s website, was put in place to ensure best practice programs were operating as planned, placing the organization “in the vanguard of nonprofits that began carefully evaluating and tracking the results of their work.” As a result, HCZ has grown from a 24-block area to nearly 100-blocks and in 2008 served over 10,000 youth.