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13 posts from December 2016

Most Popular PhilanTopic Posts in 2016

December 30, 2016

So it ends, not with a bang but a whimper. Depending on whom you speak to, 2016 was a train wreck, a dumpster fire, a sure sign of the apocalypse, and just plain weird. If it was a year in which too many beloved cultural icons left us, it was also an annus horribilis for progressives, who will have to work twice as hard in the new year (and beyond) to preserve important policy gains achieved over the last eight years and limit the harm caused by a Trump administration and a Republican-controlled Congress.

But while our attention often was focused elsewhere, many of you were taking care of business and digging deep into the PhilanTopic archives for tools and ideas you could use — today and in the weeks and months to come. So, without further preamble, here are the ten posts you "voted" as your favorites in 2016. Enjoy. Happy New Year. And don't forget to check back next week, as we return to the office tanned, rested, and ready to fight the good fight.

What have you read/watched/heard lately that got your attention, made you think, or gave you a reason to feel hopeful? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

How to Attract and Retain Next-Gen Talent

December 22, 2016

Talent-magnet-600x400With an entire generation of senior nonprofit leaders about to retire, nonprofit managers have one thing on their minds: hiring and retaining next-generation talent. But according to Nonprofit HR's 2015 Nonprofit Employment Practices Survey, nonprofits are having hiring and retention issues due to a variety of factors, including uncompetitive salaries, an inability to provide sufficient career opportunities, and excessive workloads.

These hiring and retention challenges are why nonprofits need to focus their efforts on employee engagement. My company, Quantum Workplace, surveyed more than 440,000 employees from nearly 5,500 organizations through our 2016 Best Places to Work program and have published the findings in our Engaging Nonprofit Employees: Industry Report. Among other things, the report found that only 58 percent of nonprofit organizations are engaged — putting the nonprofit sector third from the bottom out of eighteen industries.

Is your nonprofit suffering from rotating-door syndrome when it comes to top talent? Does your organization have a strategy to attract talented newcomers and entice them to stay and grow their skills within your organization. Below are three proven ways to attract and retain millennial and Gen Z employees:

1. Emphasize diversity and inclusion. Young people are looking to make a positive impact on the lives of others, so it's no surprise they want to work for organizations that are seen to be fair, inclusive, and diverse. But even though nonprofit employees, in general, are a diverse group, many nonprofits still fall short when it comes to diversity policies, initiatives, and outreach.

With millennials and Gen Zs entering the workforce in huge numbers, this issue has more resonance than ever. Young people want to see organizations actually walk the talk that's embedded in their mission and value statements.

Besides, inclusion isn't just good for employees. McKinsey's 2015 report Why Diversity Matters found that companies in the top quartile for racial and ethnic diversity are 35 percent more likely to outperform the national industry median across multiple benchmarks and indicators. In other words, integrating diversity and inclusion into your organizational culture will enhance both employee satisfaction and your bottom line.

One way to demonstrate your commitment to diversity and inclusion is to encourage frequent one-on-one meetings between team leaders and team members and adopt an open-door policy that encourages employees to express their concerns about diversity-related issues when they arise. You can promote inclusion by giving the entire staff an opportunity to brainstorm together about ways to bring diversity into the organization. And you can give prospective employees a sense of your team's diversity initiatives by posting pictures on your website of group bonding and brainstorming activities and featuring quotes from current employees that capture their positive experiences with your organization's diversity and inclusion policies.

2. Be a trustworthy leader. Younger employees today are looking to leaders to model their values. Sadly, this is a bit of a problem in the nonprofit sector. Our Engaging Nonprofit Employees survey found that only 58 percent of nonprofit employees said they worked for an organization with a strong or somewhat strong ethical culture. At the same time, the survey data ranks trust in nonprofit leadership as the second most important driver of employment engagement.

You don't have to be a rocket scientist to understand that the disconnect between nonprofit employees' expectations and what they actually see in the workplace is undermining the attraction of nonprofit work for many millennials and Gen Zs.

A relatively easy thing you can do to fight this trend and instill more employee confidence in your organization's leaders and managers is to implement a 360 feedback system. Start by surveying members of the organization to understand what they need from their managers in order to perform at a high level. As managers process that feedback and modify aspects of their own behavior, you'll be surprised how quickly younger employees begin to accept that the people leading the organization have their best interests at heart.

Another common misconception about millennials and Gen Zs is that they are devoted to screens. However, the Gen Y and Gen Z Global Workplace Expectations Study found that 53 percent of Gen Zs prefer face-to-face communication for most workplace activities. Keep that in mind the next time you're getting ready to send an email or Slack message to a younger employee.

3. Accentuate the positive. Nonprofit employees want to be assured the future is bright — for themselves as well as the organization they've committed to. And as boomers start to retire in significant numbers, millennials and Gen Zs will be expected to use their skills to make an impact and lead the organization into that bright future.

You can enhance the attractiveness of your nonprofit as a great place for millennials and Gen Zs to wok by tapping into their optimism in your job descriptions. Provide specific examples of how your organization is living up to its mission and values and how the open position is all about making life better for others. Also be sure to list any continuing education opportunities your organization makes available to younger employees.

Remember, too, that many young employees aren't yet confident in their skills and so are unclear about what their future with an organization could be. Recognition software makes it easy to reward younger employees and let them know their work is respected and appreciated by their peers, which in turn builds their confidence and deepens their engagement with the organization and its mission.

So there you have it — three things any nonprofit can do to increase its attractiveness to millennial and Gen Z employees. We're the future, what are you waiting for?

Natalie_hackbarthIs your nonprofit doing something creative to attract and retain millennials and Gen Zs? Let us know in the comments section below!

Natalie Hackbarth is the inbound marketing manager at Quantum Workplace, a company dedicated to providing every organization with quality engagement tools.

Risky Business and Maximizing Impact

December 20, 2016

Risk_measurementOpen Road Alliance is in the business of risk. A private foundation, Open Road only provides funds to fully-funded nonprofit projects that encounter unexpected obstacles. We come in when risk is realized. Over the last four years, we've worked closely with more than sixty-five nonprofits and projects ranging in size and area of focus. Yet through our work, we've seen just how infrequently risk and the unexpected are incorporated into the grantmaking process.

Based on our own research, we found that 76 percent of funders report that they do not ask potential grantees about possible risks to a project, while 87 percent of grantees report that no grant application has ever asked for a risk assessment. Both nonprofits and funders acknowledge that risk exists; neither seem to have found a way to address it. Seeing these stories over and over again in our own portfolio raised the question as to whether the organizations we work with were an exception to or the norm in philanthropy.

To test this, we partnered with IssueLab, a service of Foundation Center, to examine what materials were available to and authored by the philanthropy sector that address risk. Last month, the IssueLab team completed an evidence scan of the sector's "grey literature" – websites, blogs, and industry-specific publications – and identified which types of resources are currently available to nonprofits on the topic of risk.

The IssueLab scan uncovered two important findings:

  • Funders love to talk about "risk" and being "risk-takers" without having a standard definition of risk and how to measure it. If funders cannot define or measure risk, they can't know whether they are taking one.
  • As much as funders like to discuss risk, there is virtually no conversation around how to manage it. Without risk management, the conversation about whether philanthropy is or should be risk-taking is moot.

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Weekend Link Roundup (December 17-18, 2016)

December 18, 2016

Tis-season-eye-chartOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Climate Change

The government of the Netherlands has presented a long-term energy plan that stipulates that no new cars with combustion engines may be sold from 2035 on and that all houses in the country must be disconnected from the gas grid by 2050. Karel Beckman reports for the Energy Collective.

Fundraising

What's the best way to get donors under the age of 40 to donate to your nonprofit? Future Fundraising Now's Jeff Brooks shares a little secret.

Giving

In FastCoExist, Ben Paynter has a quick primer on what certain proposals in the Trump tax plan could mean for charitable giving.

The real possibility of lower marginal rates and changes to the cap on itemized deductions under a new Trump administration has many wealthy donors rushing to donate shares of appreciated stock before the end of the year. Chana R. Schoenberger reports for the Wall Street Journal.

As another year winds to a close, Elie Hassenfeld, Holden Karnofsky, and other members of the GiveWell team discuss the thinking behind their personal end-of-year giving choices.

Impact Investing

For those interested in keeping up with developments in the fast-growing field of impact investing, the Case Foundation's Rehana Nathoo has curated a list fifty impact investing "influencers" you should follow on Twitter.

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Nonprofits! You Are Not the (Only) Gatekeeper for Your Issue!

December 16, 2016

GatekeeperLast month my mother called to tell me about a neighbor who had just been diagnosed with cancer. She talked about how sad the news made her, and told me the town was really coming together to do something for one of its own. In fact, local town leaders had already decided to organize a fundraiser for our friend.

While we were talking, my mother decided to check out the online fundraising page that had been set up. It didn't take long for me to realize that something was bothering her. "Mom?" I prompted.

"I thought we were being asked to donate to the local cancer society," she replied. "I'd feel a whole lot better if I knew something about the national organization or where my money was going."

Her comment was interesting, in a number of ways. It suggested, first of all, that my mother is more motivated to give when she knows her donation will be used to support a cause close to home and/or understands how her donation will be used. But as we kept chatting, I realized that what she really wanted was to do something for our neighbor directly and in a way that helped our neighbor and her family in their hour of need.

Understanding that way of thinking and, more broadly, what motivates people to engage with a cause — your cause — is critically important if your nonprofit hopes to gain the support of donors and grow that support over time. And while, obviously, my mother is not a millennial, her comment illustrates a mindset related to cause behaviors that, in our research on millennials (see the Millennial Impact Report), we've encountered quite a bit. Indeed, as we conduct that research, we continually ask ourselves, What are the factors that influence (or discourage) millennial donors to support a cause or organization?

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5 Questions for…Alison Taylor, Director, Business for Social Responsibility

December 13, 2016

The corporate social responsibility debate took an interesting turn in 2016, as critics of ExxonMobil, the world's largest oil and gas company, alleged that company executives "knew humans were altering the world's climate by burning fossil fuels even while [the company] was helping to fund and propel the movement denying the reality of climate change." ExxonMobil's campaign to discredit its critics coincided with a decision by the Rockefeller Family Fund — a philanthropy established by the grandchildren of John D. Rockefeller, founder of Standard Oil, ExxonMobil's direct antecedent — to divest its holdings in fossil fuel companies and, as fund president David Kaiser wrote in an issue of the New York Review of Books, to do so "gradually," even as it singled out ExxonMobil for immediate divestment because of its "morally reprehensible conduct."

The Texas-based multinational was not amused and moved quickly to rebut the allegations, arguing that it had become the target of "a well-funded and politically motivated conspiracy to harm its core business." But the controversy merely underscored the difficult act that global corporations, especially those in the energy and extractives sector, must pull off as they try to balance the expectations of shareholders against the demands of an increasingly "green" global public.

To learn more about the changing CSR environment, PND contributing editor Michael Wiener recently exchanged emails with Alison Taylor, a New York-based director at Business for Social Responsibility, a global nonprofit organization that works with a network of more than two hundred and fifty member companies and other partners to build a just and sustainable world. In September, BSR, in partnership with the Rockefeller Foundation, announced the launch of an initiative aimed at building more inclusive global supply chains.

Philanthropy News Digest: How do you define integrity in the context of business sustainability?

Headshot_alison_taylorAlison Taylor: Business sustainability is one approach and framework for considering organizational integrity. The other is ethics and compliance. Ethics and compliance teams tend to focus on oversight of internal rules and processes and on ensuring that organizations comply with regulations, though they are increasingly being held responsible for wider organizational ethics. Sustainability and CSR teams consider issues of current and emerging public concern such as climate change, human rights, and social impact, with regulatory considerations secondary. Although questions of ethics and integrity are important for sustainability and CSR teams, they sometimes are less explicitly drawn. And frankly, in many organizations there is a disconnect between the two frameworks and approaches; there may be policies and Codes of Conduct that address organizational values, but companies can contradict themselves  for example, by investing in community development but also using offshore investment structures to avoid taxes. By considering integrity in a more integrated and consistent way, and by building structures and cultures to support that integrity, companies can reduce risk and improve their reputations.

PND: How are companies using ethical frameworks to drive business sustainability?

AT: I think sustainability practitioners use ethical arguments to drive support for their programs, but there is also considerable focus on the business case for sustainability and on demonstrating that sustainable businesses are more profitable and successful in the long term. I actually think that where there is considerable support from corporate CEOs and boards, they are more often compelled to take these actions due to ethical considerations. But many companies remain skeptical of the sustainability agenda, and so the field remains focused on making commercial arguments to support that agenda. Those arguments are becoming stronger, however, as public trust in business plummets and voices for greater transparency grow louder. Companies know they can no longer reliably control or manage their public profiles, and so they are paying more attention to sustainability.

PND: What do you say to people who argue that the most important responsibility of any publicly owned company is to maximize shareholder value, not to address social, environmental, or human rights issues or problems?

AT: The emphasis on shareholder value and quarterly reporting remains the status quo and reality. It's also why companies sometimes welcome environmental and social regulation, as the need to comply with existing regulations and laws means they can resist pressure to undertake unsustainable activities in order to keep investors happy. To date, only a few really large companies, notably Unilever, have successfully managed to resist quarterly reporting pressure when it comes to corporate sustainability measures. However, the growing focus on environmental, social, and governance (ESG) issues among investors, coupled with widespread disruption and ongoing failures of leadership and governance in the private sector, means that there is more and more discussion of leadership and growth models that might work better.

There is overwhelming evidence, for example, that companies need to do more to consider community and society's needs and not just take a narrow, self-interested view. Even Milton Friedman argued that companies needed to do this in order to survive over the long term. But once you start to consider sustainability issues, it brings into play huge amounts of complexity in terms of priorities, decision making, and even a company's core activities. I think it's the reason why the shareholder-value concept has been so powerful for so long. It enables prioritization and clear decision making around priorities.

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Weekend Link Roundup (December 10-11, 2016)

December 11, 2016

Our weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Black and white trees

Climate Change

In response to President-elect Trump's decision to stock his cabinet with climate change deniers, more than eight hundred Earth science and energy experts have signed an open letter to Trump, "urging him to take six key steps to address climate change [and] help protect America's economy, national security, and public health and safety." Michael D. Lemonick reports for Scientific American.

Community Improvement/Development

The Boston Foundation is bringing the global Pledge 1% movement to Boston. Through the initiative, individuals and companies plugged into the local innovation economy pledge 1 percent of the equity of their company for the benefit of the greater Boston region — or any other region or country. Learn more here.

Data

In this Markets for Good podcast (running time: 58:29) moderator Andrew Means, GuideStar president/CEO Jacob Harold, nonprofit innovator, blogger, and trainer Beth Kanter, and Rella Kaplowitz, program officer for evaluation and learning at the Charles and Lynn Schusterman Family Foundation, share strategies and insights for using data to drive social sector impact.

Education

On the NPR website, Eric Westervelt weighs in with a balanced profile of incoming Secretary of Education Betsy DeVos. And in Bridge magazine, Chastity Pratt Dawsey and Ron French offer a less-flattering account of DeVos' legacy as a leading funder of school-choice policies in Michigan.

On her Answer Sheet blog, Washington Post education reporter Valerie Strauss looks at a recent decision by the NACCP, America's oldest civil-rights organization, to ratify "a resolution calling for a moratorium on expanding public charter school funding until there is better oversight of these schools and more transparency from charter operators."

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Embracing Partnerships to Widen Impact

December 09, 2016

Piecing_it_togetherAs the executive director of The Blue Card, a national nonprofit that assists Holocaust survivors, I have seen nonprofits having to adapt to the consequences of the worst economic downturn since the Great Depression, a rapidly accelerating digital revolution, and a renewed emphasis on corporate social responsibility, all of which have forced them — and us — to rethink how we communicate and execute on our missions.

Through this period of change, we've managed to grow our operating budget by 40 percent and expanded our outreach from nineteen to thirty-two states, even as our full-time headcount has remained in the single digits. At the same time, my colleagues and I have seen the needs of survivors we support increase, as they struggle with health issues and ever-rising healthcare costs. For many of them, the difficulty of navigating the public health system and the stresses they face as a result of financial pressures are exacerbated by the psychological and emotional scars they bear. That's why finding a way to provide outreach services to our constituents has been as important as helping them with financial support.

Indeed, if we learned anything from the economic downturn of 2008-09, it's that it is just as important to diversify one's operational strategy as it is one's fundraising strategy. By forging partnerships and taking advantage of synergies with a variety of public- and private-sector agencies, we've been able to increase our programmatic offerings while keeping our operational structure lean and nimble.

And along the way, we've learned a few things about how collaboration and partnerships can be used to help extend an organization's reach:

Don't be afraid. While charitable giving rose smartly in 2015, so did the number of registered nonprofits. Which means the competition for dollars and support from foundations, associations, corporations, and individual donors is as great as ever.

It's important to remember, however, that nonprofits focused on the same problem or cause invariably share the same goal. And that collaborating with an organization or organizations with a mission and goals that align with yours doesn't mean the support you receive has to suffer. On the contrary, you just may find that funders are willing to increase their support if they know the extra dollars won't be used to underwrite duplicative services or programs.

In 2013, for example, The Blue Card began working with the Association of Jewish Family & Children's Services (AJFCA), a membership network of Jewish family service agencies across the United States and Canada. Through AJFCA, we were able to cultivate relationships with social workers and agencies around the country that often are the first point of contact for the elderly, and today we receive referrals from more than seventy agencies in the AJFCA network.

In addition, we've identified organizations in other countries that do similar work and have formed relationships with many of them, making it possible for those agencies to refer donors to us who wish to help Holocaust survivors living in America.

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What Do We Know About…Disconnected Youth?

December 07, 2016

Over six million Americans between the ages of 16 and 24 are not in school or working. Often known as disconnected or opportunity youth, they are among the upwards of fourteen million young adults who are only marginally or periodically in school or working. At the same time, several million young people have had almost no labor market or educational experience in the past year.

Youth and young adults represent the future of our country — our economy, our communities, our democracy — and it is in our best interest to help ensure that they’re engaged with and connected to school and jobs.

Special collection_disconnected youth

To that end, the Annie E. Casey Foundation asked Foundation Center to create a special collection on IssueLab about the group of young people known as disconnected youth. This new online resource houses nearly one hundred and forty recent reports, case studies, fact sheets, and evaluations focused on the challenges confronting youth today, as well as lessons and insights from the field.

The Casey Foundation's interest in these issues began in 2012, when we published Youth and Work: Restoring Teen and Young Adult Connections to Opportunity, signaling our recognition of the crisis facing young people and the need to create stronger pathways to education and jobs. Our commitment mirrored a national reawakening to the needs and aspirations of youth, including the White House Council for Community Solutions, the Aspen Forum for Community Solutions, and the Obama administration's My Brother's Keeper initiative to improve opportunities for boys and young men of color.

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New Law Will Significantly Strengthen Nonprofit Sector in New York

December 06, 2016

Img_newyorkOn November 28, 2016, Governor Andrew Cuomo signed into law a Nonprofit Revitalization Reform Bill that will strengthen the regulation and operation of nonprofit organizations in New York State in many ways while also helping the communities they serve. The timing could not be better. In the current national political climate, nonprofits are likely to be called to provide new levels of support in multiple areas, including protection of civil rights, delivery of social services, immigration enforcement, family planning, and more. 

The new law will help by introducing major improvements in many areas of nonprofit governance. For example, it will help ensure that board members are more familiar with, and responsible for, their organization's policies and procedures around conflicts of interest and whistleblower complaints. It bars any person who is the subject of a whistleblower complaint from involvement in handling that complaint and creates new levels of legal liability for individuals who abuse nonprofit assets for personal gain, even when they do not serve as an officer, director, or employee of the organization.

The law creates an incentive for nonprofits to review and correct procedures related to conflicts of interest, particularly those that happen innocently. This will apply to a wide range of potential conflict situations, such as when a director is unaware that a relative has an interest in a transaction or when a board approves a transaction after considering alternatives but fails to document the basis for its approval. The law outlines both a mechanism for a board to ratify a procedurally defective transaction if it was in the organization's best interest and an incentive for the board to tighten up its procedures going forward.

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Most Popular PhilanTopic Posts (November 2016)

December 05, 2016

It's beginning to look a lot like Christmas...and Hannukkah...and Kwanzaa...and the end of an especially eventful year. Before you get busy with your end-of-year tasks and holiday chores, take a few minutes to check out some of the PhilanTopic posts that other readers enjoyed and found useful in November....

What have you read/watched/heard lately that got your attention, made you think, or gave you a reason to feel hopeful? Feel free to share with our readers in the comments section below. Or drop us a line at mfn@foundationcenter.org.

Weekend Link Roundup (December 3-4, 2016)

December 04, 2016

Traditional-WreathOur weekly roundup of noteworthy items from and about the social sector. For more links to great content, follow us on Twitter at @pndblog....

Aging

America is aging rapidly, and for "elder orphans" — the growing number of seniors with no relatives to help them deal with physical and mental health challenges — the future is a scary place. Sharon Jayson reports for Kaiser Health News.

Animal Welfare

Nonprofit Chronicles blogger Marc Gunther looks at the animal welfare movement, which, he writes, "is energized these days by the commitment, brainpower and moral fervor of a impressive group of activists in their 20s and 30s...crying out in opposition to what they see as an evil but widely-accepted practice."

Data

On her Philanthropy 2173 blog, Lucy Bernholz explains why, given the threats the incoming Trump administration poses "to free assembly, expression, and privacy," the nonprofit and philanthropic communities need to do more to manage and protect their digital data.

Education

Betsy DeVos, Donald Trump's pick to be U.S. Secretary of Education, is a wealthy supporter of "school choice" and, as "one of the architects of Detroit's charter school system,...partly responsible for what even charter advocates acknowledge is the biggest school reform disaster in the country." In an op-ed in the New York Times, Douglas N. Harris, a professor of economics at Tulane University and founding director of the Education Research Alliance for New Orleans, explains why her "nomination is a triumph of ideology over evidence that should worry anyone who wants to improve results for children."

In a letter to the editor of the Washington Post, Paul J. Deceglie of Fairfax, Virginia, argues that poverty, not school choice (or lack thereof), is the chief driver of poor student performance.

In a new installment of The Chronicle of Higher Education’s Re:Learning podcast, Goldie Blumenstyk chats with Jim Shelton, who recently was hired by the hired by the Chan Zuckerberg Initiative to head up its education work.

Fundraising

Guest blogging on Beth Kanter's blog, Rob Wu, CEO and co-founder of CauseVox, shares six insights the so-called sharing economy tells us about the future of fundraising.

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5 Questions for...Cecilia Clarke, President and CEO, Brooklyn Community Foundation

December 01, 2016

As grassroots movements like Black Lives Matter have emerged in recent years, the issue of racial equity has come into sharper focus.

In 2014, the Brooklyn Community Foundation launched an effort to engage more than a thousand Brooklyn residents and leaders in envisioning the foundation's role in realizing "a fair and just Brooklyn" — an effort that in 2015 earned BCF the National Committee for Responsive Philanthropy's Impact Award for its community-led approach. Earlier this month, the foundation announced that, in alignment with its commitment to advancing racial equity across all aspects of its work, it would divest from industries that disproportionately harm people of color.

PND spoke with Cecilia Clarke, the foundation's president and CEO, about BCF's focus on racial justice, its decision to divest its portfolio of industries that disproportionately harm people of color, and the post-election role of philanthropy in advancing racial equity.

Cecilia_clarke_for_PhilanTopicPhilanthropy News Digest: Before joining BCF, you founded and led the Sadie Nash Leadership Project. Tell us a little about the project and what it sought to accomplish.

Cecilia Clarke: Sadie Nash Leadership Project is a feminist social justice organization for low-income young women in all five boroughs of New York City and Newark, New Jersey. I founded it in 2001 in my dining room here in Brooklyn, and today it's a nonprofit with a $2 million annual budget serving over two thousand young women annually. One of the organization's working assumptions is that young women are ready to be leaders in their communities right now, and Sadie Nash is there to help shape that leadership through what it calls its "sisterhood model" — providing a safe space, active leadership opportunities, education, and hands-on mentorship and role modeling by leaders who look like the young women themselves.

At Sadie Nash, young women serve on staff and on the board as real voting members, and — in addition to the organization's flagship summer institute program — participate in afterschool programs, fellowships, and internships. And in everything they do for and through the organization, they are paid for their leadership, because it underscores the concept that they are leaders today. Sadie Nash is not training these young women for some hoped-for future; it's important that, given their identity and their experience, we all understand that they can be a force for social change in their communities right now.

PND: In announcing its intention to divest from industries that disproportionately harm people of color, BCF specifically mentioned private prisons, gun manufacturers, and predatory lenders. What kind of impact have these industries had on communities of color and low-income communities in Brooklyn and beyond? And how do you see the divestment process playing out?

CC: To back up a bit, when I first came to BCF, it was a foundation that had only recently transitioned from being a private bank foundation to a community foundation, and it hadn't done a lot of community engagement work. Sadie Nash was very committed to engaging its constituency, and I brought that experience with me to the foundation. So, pretty early on we launched a community engagement initiative called Brooklyn Insights through which we spoke with more than a thousand Brooklynites. And what came out of that process was that there were very clear racially biased policies and practices and traditions in the community that the people who spoke with us believed had helped create and reinforce many of the other issues we were discussing, particularly around young people and criminal justice. As a community foundation, we felt we had to be responsive to what we were hearing and to look at the issues that oppress communities of color — which make up 70 percent of Brooklyn's population.

To that end, we created a Racial Justice Lens as an overarching focus for every aspect of the foundation's work and management, not just our programming or grantmaking. And that meant we needed to look at our investments. We decided on the three areas of divestment you mentioned after multiple conversations, but I want to make clear that we are at the beginning of the process, not at the end. We chose those three areas to begin with because they were very closely related to our program areas and our mission, especially our focus on young people and racial justice. Given our commitment to youth justice, the private prison industry was an obvious area of divestment. Gun violence is still an enormous problem in Brooklyn, with a huge number of guns being trafficked into the borough, so we felt very strongly about gun manufacturers. And looking at the significant economic inequity and lack of opportunity in our neighborhoods, we saw that check cashing and other predatory financial services were making a profit off of inequity. All three of these industries profit from racial injustice and racial inequity, and we felt very strongly that we cannot be a foundation that stands for racial justice and allow these industries to remain in our financial portfolio.

The foundation doesn't invest in individual stocks, so it isn't as if we remove private prisons and replace it with X. Our investments are managed by Goldman Sachs, and Goldman chooses different fund managers with various portfolios of stocks and different investments. So what our divestment means is that we've signaled to our fund managers that these three industries cannot be included in our portfolio, and our finance committee is working very closely with the team over there to make sure that happens. The restrictions we've communicated to them work like proactive insurance to ensure that, going forward, our portfolio will be "clean" of these investments. In a way, the stars sort of lined up for us, because Goldman is getting more and more requests for socially responsible investment choices and has created a new department to do just that. So that's an instrument we can take advantage of while further promoting conversations about aligning our investments with our mission.

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