The Solution for Saving Mom-and-Pop Businesses

The COVID-19 pandemic has upended the U.S. economy, leaving every community facing tremendous uncertainty. One thing is clear, however: low- and moderate-income communities and the small businesses they support will suffer the most if we do not move quickly to address their needs.

Although Congress passed a $310 billion Paycheck Protection Program in April, many small businesses and nonprofits were left out. And the program has yet to reach many of the most marginalized in our communities, especially small businesses owned by people of color. Indeed, according to the Center for Responsible Lending, 95 percent of African American-owned businesses and 91 percent of Latinx-owned businesses likely will not be able to access the program. 

To help remedy the problem, the federal government has allocated $30 billion through the program to "community financial institutions" to enable them to be more inclusive in their lending to businesses that have been ignored.  But even with a portion of PPP funds set aside for institutions like community development financial institutions (CDFIs), minority-owned banks, and credit unions, the level of funding earmarked for those lenders is insufficient to meet the scale of the problem.  

To save mom-and-pop businesses — including local farms and food producers, as well as small manufacturing businesses — it is imperative that we mobilize private capital to address the problem. But more capital is only part of the solution. Capital, whatever its source, must be applied with precision and a thorough understanding of the businesses receiving funds to ensure that the amount, type, and timing of the capital are well-matched to the business and its goals. 

This is not the time to search for shiny new investable ideas. More than a thousand community development institutions across the United States already are working to fill  gaps in the capital markets without regard to a borrower's color, gender, or ethnicity.

In this time of anxiety and uncertainty, impact investors — private investors who seek to create social impact — should look to CDFIs as a bridge to low-income communities. Not only do we have a forty-year record of working in those communities, we also provide relationship-based technical assistance — advice that is especially valued as small business owners look to reinvent themselves for a post-pandemic economy. 

Over thirty-six years, our CDFI, the New Hampshire Community Loan Fund, has built a strong, resilient community business. In part through a relationship-based, community-organizing approach, we have grown our ability to lend the right capital at the right time to make a difference. In this time of trouble, this is what we bring to the table to help small businesses weather the storm: 

We know how to stabilize a business. Many businesses have teams that possess skills and local knowledge accumulated over years. By providing capital to such businesses when they hit a rough patch, we make it possible for them to keep those skills and knowledge in-house, thereby reducing local economic disruption over the longer term. 

We work collaboratively. CDFIs fill capital gaps created by the business models of mainstream lenders and investors. For instance, our CDFI focuses on providing growth capital, a type of higher-risk financing that allows for the greater uncertainty inherent in the small business economy that is especially well-suited to this uncertain economic environment. What's more, the loans we underwrite are based on cash flow and the strength of the management team, as opposed to collateral. Our strong track record (i.e., minimal defaults) isn't because we're quick to say "no," but rather is the result of our focus on helping the borrower succeed. And the strong relationships our business advisors have built with our borrowers give us confidence that when borrowers see trouble ahead, they will ask for help sooner rather than later, knowing that we'll be patient and work with them to resolve the problem. 

We're creative. Like growth capital, pivot financing allows us the flexibility needed to shape financing to the needs of each particular business. Relying on unrestricted community-sourced capital allows us to structure deals creatively, using all the tools in our financial toolbox, including grants, debt, sub debt, revenue-based financing, and equity. The greater the mission alignment, the more willing we are to stretch, accepting a greater share of the risk so as to keep costs low for the borrower. Our backstops are our knowledge of the business and the trust we have earned — both of which are priceless as we and our borrowers navigate our way through this crisis.

In this moment, impact investors and funders don't need to spend valuable time searching for new ideas. They can invest in the existing CDFI infrastructure, an infrastructure uniquely positioned to stabilize and pivot local businesses for whatever lies ahead. By focusing our relationship-based efforts on businesses led by women and people of color, as well as businesses that are creating better jobs for low-income workers, we are doing our part to ensure that fewer people will be permanently harmed by the fallout from the virus. In doing so, we also are actively working to enlist new allies to this critical work. The challenge is immense; the time to act is now. 

John Hamilton is vice president of economic opportunity at the New Hampshire Community Loan Fund.

[Review] The Business of Changing the World: How Billionaires, Tech Disrupters, and Social Entrepreneurs Are Transforming the Global Aid Industry

Gone are the days when major donor governments and multilateral agencies poured large sums into international development projects that were evaluated mainly by the level of the donors' generosity. As Raj Kumar explains in The Business of Changing the World: How Billionaires, Tech Disrupters, and Social Entrepreneurs Are Transforming the Global Aid Industry, the foreign aid industry, in the United States and elsewhere, is undergoing a huge transformation: once dominated by a handful of players, the sector is being reinvented as a dynamic marketplace hungry for cost-efficient, evidence-based solutions.

As the co-founder of Devex, a social enterprise and media platform for the global development community, Kumar has a unique perspective on the emerging trends, key players, and new frameworks and philosophies that are shaping the development sector. And as he sees it, the sector is undergoing three fundamental changes: first, an opening up to diverse participants; second, a shift from a wholesale to a retail model of aid; and third, a growing focus on results-oriented, evidence-based strategies.

According to Kumar, the diversification of participants and, consequently, of strategies, both characterizes and is contributing to the growing success of this new era of aid. Prior to the twenty-first century, the sector was dominated by large agencies such as USAID (U.S. Agency for International Development) and the World Bank functioning as an oligopsony in which aid strategies were relatively homogeneous and any latitude to innovate was limited. Thanks in part to the wealth accumulated by tech billionaires such as Bill Gates and Mark Zuckerberg, however, that is changing and the sector today operates and is informed by a much broader range of perspectives.

One result of the influx of tech dollars and expertise into the sector has been a demand for results, often in the form of a measurable return on those investments. But despite the broader diversity of approaches, failure is still part and parcel of the field, and Kumar offers some insights into why. An example he cites repeatedly is Massachusetts Institute of Technology professor Nicholas Negroponte's One Laptop Per Child (OLPC) Initiative, which never fully delivered on its thesis that providing laptops to children in the developing world would go a long way to closing education gaps. As Kumar notes, past evaluations of the program have found that laptops did not do much to improve children's learning — in part because the initiative failed to adequately train teachers or develop curricula tailored to computer-based learning — and he uses the example to highlight the importance of pilot-testing projects to determine their efficacy before implementing them at scale.

Newsmakers: Jean Case, Author, ‘Be Fearless: 5 Principles for a Life of Breakthroughs and Purpose’

Jean Case is a woman on a mission. As the youngest child of a single mom working to raise a family in the small town of Normal, Illinois, and then in the Fort Lauderdale area, Case studied hard and dreamed big — of becoming a lawyer and maybe having a career in politics. But a few years out of college, something new called the Internet beckoned, and she found herself working at the one of the first pure-play online services. In short order, she took a similar position at General Electric and then, in her late twenties, landed a job at another startup, soon to become America Online (AOL), where over the next decade she and her colleagues helped usher in the Internet revolution.

In 1997, Case left AOL and not long after, with her husband Steve, then the chair and CEO of AOL, started the Case Foundation with an eye to "investing in people and ideas that can change the world." As the organization's founding CEO, Jean has helped guide its investments in online platforms like Network or Good, Causes, and MissionFish, and has spearheaded its forays into the still-nascent impact investing field. She currently serves on the boards of Accelerate Brain Cancer Cure (ABC2) and the White House Historical Association, and on the advisory boards of the Brain Trust Accelerator Fund, the Stanford Center on Philanthropy and Civil Society, and Georgetown University's Beeck Center for Social Impact and Innovation. In 2016, she was named chair of the National Geographic Society’s board of trustees, the first female chair in the society’s history.

Case attributes much of her success to her mother, her "first and most enduring role model" and the person who taught her "to take risks, to see possibility, and to be good to others." In her new book,Be Fearless: 5 Principles for a Life of Breakthroughs and Purpose, Case shares the stories of ordinary people who overcame their fear, took a bold risk, and did something extraordinary.

PND spoke with Case in January about the book and the lessons she has learned about success and the people who achieve it.

Philanthropy News Digest: Jean, I think a lot of people would like to know why you decided to write this book.

Jean Case: Well, the book is premised on research the Case Foundation undertook a number of years ago, where we set out to investigate the core qualities of great entrepreneurs and change makers, past and present, from around the world. And what we discovered was really surprising. When you think about what vaults people to success, it wasn’t genius, or privilege, or wealth. Instead, it boiled down to five things that are present whenever a transformational breakthrough happens. We thought it was interesting research, and we wanted to share it. And we quickly learned that what we were sharing resonated with people in every sector, with leaders of organizations in every sector, from college students to CEOs, in terms of challenging them to think about how they might move something for­ward that might have been languishing, or that they didn’t think they could do.

PND: The transformational breakthroughs you talk about in the book are almost always rooted in the willingness of an individual or an organization to make a big bet, take a risk, and let urgency conquer their fear. Urgency is key in that equation, isn't it?

JC: It is. In fact, I think the role it plays is often underestimated. I like to say that there is no better time to do something than when your back is against the wall, because you have nowhere left to go. It's what Martin Luther King called the "fierce urgency of now," and sometimes it's exactly the motivation we need to get out there and try.

That's really what the book is about. It's a call to people who have an idea about how to make the world better to get out there and try. And it provides a playbook, based on five principles, to help get folks started and to give them a sense of what they need to think about as they try to execute on a big idea.

A Conversation With Ann Mei Chang, Author, 'Lean Impact: How to Innovate for Radically Greater Social Good'

Poverty. Mass migration. Economic dislocation. Climate change.

The problems confronting societies around the globe are big — and getting bigger. The resources available to address those problems, however, are shrinking, as governments burdened by huge debts and future obligations and corporations wary of controversy pull back from “feel-good” causes and collective action. And while countless foundations and civil society groups continue to fight the good fight, their resources seem Lilliputian compared to the magnitude of the challenges we face.

It’s a moment that demands big thinking, bold thinking — but also creativity and out-of-the-box thinking. The kind of thinking we’ve come to expect from Silicon Valley, the global epicenter of a certain kind of innovation and can-do spirit. The question, for many, is: What, if anything, can technologists teach nonprofits and social entrepreneurs about social change?

In her new book, Lean Impact: How to Innovate for Radically Greater Social Good, Ann Mei Chang, a respected social change-maker and technologist, tackles that question head-on. Based on interviews with more than two hundred social change organizations spanning almost every continent, the book distills the lessons learned by change-makers over the years into a set of "lean" principles for nonprofits looking to innovate their way to greater impact.

PND recently spoke with Chang about the genesis of the book, the sometimes testy relationship between tech and the nonprofit sector, and her advice for millennials and social entrepreneurs impatient with the slow pace of change.

Philanthropy News Digest: How did you get into social change work?

Ann Mei Chang: I studied computer science in college and then worked in Silicon Valley for over twenty years, at big companies like Google, Apple, and Intuit, as well as a number of start-ups. But I had known since my mid-twenties that I wanted to spend the first half of my career in tech, and the second half doing something more meaningful, something to make the world a better place. I hoped I would be able to make that change, and I was committed to it, although I didn't know exactly when or how. But as I got closer to that point in my career, in my early forties, I began to look around at all the things I cared about, and decided to focus on global poverty, as it seemed to be at the root of so many other problems I cared about.

I recognized there was a lot I needed to learn about a very different space. I ended up taking a leave of absence from Google and went to the State Department on a fellowship, where I worked in the Secretary's Office of Global Women’s Issues, with a focus on issues around women and technology. It didn't take long before I was hooked. I resigned from Google and signed on for another year. After the State Department, where a lot of the work takes place at the ten-thousand-foot level, I joined a nonprofit called Mercy Corps to learn how the real work was being done in the trenches.

Then I was offered my dream job — as the first executive director for the Global Development Lab at USAID, the agency's newest bureau with an inspiring two-part mission. The first part was to identify breakthrough innovations that could accelerate progress in the global development and humanitarian aid work that USAID does. And the second was to look at how we could transform the practice of global development itself by bringing new tools and approaches to table. The first was the "what," and the second the "how."

It fit exactly into the way I was beginning to think about what was really needed to make a difference. That's why it felt like a dream job — it was an opportunity to do this work at the largest aid agency in the world, in the belly of the beast, so to speak, but where I'd be responsible for thinking about how we could work differently and more effectively.

PND: It's an interesting career trajectory, in that it bridges the worlds of both technology and social change. In your experience, do technologists get social change? Or do they tend to see it as another problem that needs to be "engineered"?

AMC: That really depends on the technologist. As with everything, people in tech exist on a spectrum. I've known people in tech who think that technology can solve everything — we'll build a smart phone app and that will somehow end global poverty. There can be a naiveté and hubris, especially when you’re building products for people who live in contexts that you’re not that familiar with.

But there's also a thriving community of tech people in the global development sphere — we call it ICT4D, or information communication technologies for development — who are both technologists and development professionals looking at the intersection between the two. This community has developed something called the principles for digital development, which embody the best practices for the responsible use of technology in development.

One of the really exciting things that happened while I was in government was the creation of US Digital Services and 18F, where a lot of people from the tech sector came in to work for the govern­ment and saw that their skills could be put to use to help the government better serve people. It was catalyzed by the debacle with HealthCare.gov, which caused a lot of people to recognize that tech had something it could contribute that would really make a difference.

[Review] How Change Happens: Why Some Social Movements Succeed While Others Don't

Social movements are nothing new. People always seem to be marching for — or against — something. Part of this is due to the fact that social movements often take decades to achieve the change they seek, while many never get there.

While there is no simple recipe for social movement success, Leslie Crutchfield, executive director of the Global Social Enterprise Initiative (GSEI) at Georgetown University's McDonough School of Business, and her research team have identified a number of patterns that distinguish successful social movements from those that didn't succeed and shares them in her latest book, How Change Happens: Why Some Social Movements Succeed While Others Don't. The six she identifies are a focus on the grassroots; a recognition of the importance of state and local efforts; a commitment to changing norms and attitudes as well as policy; a willingness to reckon with adversarial allies; acceptance of the fact that business is not always the enemy and often can be a key ally; and being "leaderfull."

Crutchfield argues that successful social change leaders invariably recognize the importance of advocating for a shift in social norms, not just policy reforms, and that they never prioritize one over the other. And to support her contention, she shares some key insights from successful change leaders. In the movement for marriage equality in the United States, for example, LGBT advocates used polling research to reframe the focus of the campaign's messaging from "rights" to "love" and "commitment," which in turn led to the dissemination of now-familiar slogans such as "Love is Love" and, eventually, a change in marriage laws.

To further illustrate how change happens, Crutchfield highlights a number of instances where a movement prevailed over a determined counter-movement that strayed from one or more of the patterns. Most telling, perhaps, is the success the National Rifle Association has had "in defending and expanding the gun rights of gun owners in the United States" through a relentless focus on grassroots organizing. Indeed, "[t]he gun rights movement's grassroots army is the reason why, despite the waves of angry anti-gun protests, heartbreaking vigils, and pleading calls for reform that erupt after each tragic mass shooting…gun violence prevention groups still largely lose ground." Over the years, NRA leaders have been laser-focused in growing and emboldening their grassroots base through community events such as barbecues and town hall meetings. In contrast, gun safety advocates have been more oriented "toward elite politics at the national level" and in "push[ing] a comprehensive gun control bill through Congress." The dichotomous results of the two approaches speak for themselves and serve as additional support for Crutchfield's contention that the single most important decision movement leaders have to make is whether "to let their grassroots fade to brown or...turn [them] gold."

[Review] 'The Unfinished Social Entrepreneur'

Social entrepreneur. A once-niche label for a great many people who toiled as environmentalists, civil rights activists, and suffrage fighters before any of those was a "cool" thing to be. It's also the focus of The Unfin sh d Social Entrepreneur — as the book's cover cleverly renders it — by Jonathan C. Lewis, a life-long social justice activist and accomplished social entrepreneur who has founded two socially focused enterprises, MCE Social Capital and Opportunity Collaboration; co-founded another, Copia Global; and currently serves as a trustee for the Swift Foundation, which was founded by UPS heir John Swift in 1992 with a mission to enhance the well-being of people and the environment.

Intended as a guide for current and would-be social entrepreneurs, the book outlines twenty-one themes that Lewis believes are essential values for anyone thinking about jumping into, or currently working in, the social entrepreneurship space. In short (five to ten page) chapters, Lewis uses each theme as a lens through which to explore the mindset required to be truly successful in the world of social justice, whether it's founding your own social enterprise or joining someone else's cause.

He begins with a chapter on "Justice," describing how he dropped out of college to work as a legislative aide for Nicholas C. Petris, a California state senator representing the 11th district (consisting of portions of Alameda, Contra Costa, San Joaquin, and Santa Clara counties) from 1966 to 1976 and the 9th district (encompassing most of the East Bay area) from 1976 until he was termed out in 1996. Petris's "clear sense of right and wrong; his bold embrace of new and controversial ideas; his courageous use of power; his principled instinct to fight alongside those without privilege or advantage" are, writes Lewis, "the very soul of the social entrepreneur." Lewis then weaves his personal story through chapters titled "Starting," "Passion," "Rescued," "Connection," "Failure," and "Misgivings," walking readers through the twists and turns of his journey, with each chapter highlighting a lesson learned and/or core value to be absorbed and put into practice by would-be social entrepreneurs among his readers. Taken together, they are values that — if we remain cognizant of them in our day-to-day lives, writes Lewis — will help us be better, more compassionate, and empathetic, both as human beings and as professionals.

For example, in the chapter on "Listenership," Lewis shares a moment in which he learned the value of listening "authentically," of paying attention to both verbal and non-verbal cues, and of pushing our understanding beyond the limitations of our individual frames of reference. "Listenership means hearing others: the Others who have come before us, the Others who walk alongside us, the Others who are marginalized," he writes. "Listenership is social entrepreneurship....Social entrepreneurship valorizes the listening skill because it's so fundamental, so vital, to achieving social impact." 

Weekend Link Roundup (October 14-15, 2017)

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

Arts and Culture

We've always admired Herb Alpert — chart-topping musician, innovative record producer/executive, generous philanthropist — and are happy to pass on the news that his foundation has a brand brand new website.

Economy

"[F]or the first time since World War II, American children have only a 50-50 chance of earning more than their parents" — proof that our "economic system is broken," and why jobs and opportunity are America's most pressing challenge, writes Rockefeller Foundation president Rajiv J. Shah.

Giving

How might tax reform affect charitable giving? On the NPR site, Jonathan Meer, a professor at Texas A&M University and an expert on charitable giving, shares his analysis.

Cash-strapped though they may be, cause-driven millennials are finding ways to support causes and organizations aligned with their passions and concerns. Justin Miller, co-Founder and CEO of CARE for AIDS, a faith-based NGO that provides holistic care to families affected by HIV/AIDS in East Africa, explains.

Grantmaking

On the Center for Effective Philanthropy blog, Anthony Richardson, a program officer at the Nord Family Foundation in Ohio, argues that it is critically important for funders "to listen and be discerning about what may be most helpful — and what may indeed be unintentionally harmful — to organizations doing challenging work on the front lines."

Weekend Link Roundup (May 13-14, 2017)

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

Arts and Culture

Although President Trump has signed into law a $1.1 trillion appropriations bill, bringing to an end (for now) months of debate over his administration's controversial budget blueprint, the future of arts funding in America remains uncertain, write Benjamin Laude and Jarek Ervin in Jacobin. Critics who accuse the president of philistinism are missing the point, however. "For better or worse," they write, "the culture wars ended long ago. These days, with neoliberalism's acceleration, nearly every public institution is under assault — not just the NEA. If we want to stop the spread of the new, disturbing brand of culture — the outgrowth of an epoch in which everything is turned into one more plaything for the wealthy — we'll need a more expansive, more radical vision for art."

On the Mellon Foundation's Shared Experiences blog, the foundation's president, Earl Lewis, explains why the National Endowment for the Humanities is an irreplaceable institution in American life.

Data

In a post for the Packard Foundation's Organization Effectiveness portal, Lucy Bernholz, director of the Digital Civil Society Lab at the Stanford Center on Philanthropy and Civil Society, reflects on the process that led to the center's Digital Impact Toolkit, a public initiative focused on data governance for nonprofits and foundations.

According to The Economist, the most valuable commodity in the world is no longer oil; it's data. What's more, the dominance of cyberspace by the five most valuable listed firms in the world — Alphabet (Google's parent company), Amazon, Apple, Facebook and Microsoft — is changing the nature of competition while making the antitrust remedies of the past obsolete. "Rebooting antitrust for the information age will not be easy," the magazine's writers argue. "But if governments don't want a data economy dominated by a few giants, they will need to act soon."

Food Insecurity

According to Feeding America's latest Map the Meal Gap report, 42 million Americans were "food insecure" in 2015, the latest year for which complete data are available. That represents 13 percent of U.S. households — a significant decline from the 17 percent peak following the Great Recession in 2009. The bad news is that those 42 million food-insecure Americans need more money to put food on the table than they did before. Joseph Erbentraut reports for HuffPo.

Weekend Link Roundup (April 15-16, 2017)

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

Advocacy

Our colleagues over at GrantCraft have put together an excellent suite of resources that captures the wisdom of philanthropic leaders who have participated in multi-party advocacy collaboratives. Check it out.

And Salsa Labs, a maker of integrated software for nonprofits, has released a a Nonprofit Advocacy Action kit that includes, among other thing, best practices and customizable advocacy templates. (Registration required.)

Climate Change

There's no denying that philanthropy is as industry that loves jargon — or that the use of jargon often undermines the effectiveness of our messaging and communications. With that in mind, Achieng' Otieno, a communications officer in the Rockefeller Foundation's Nairobi office, shares some tips about how to communicate the concept of "resilience" to non-experts.

Health

Here on Philantopic, the Robert Wood Johnson's Foundation John Lumpkin has some suggestions about what we can do to improve care for patients with complex needs.

Higher Education

On the Inside Philanthropy site, Mike Scutari examines the implications of a new Marts & Lundy report which finds that mega-gifts for higher education are rising while alumni giving overall is falling.

Weekend Link Roundup (December 17-18, 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....

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.

Weekend Link Roundup (December 3-4, 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....

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.

Weekend Link Roundup (August 20-21, 2016)

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

Civic Engagement

On the Carnegie Corporation website, the corporation's Geri Mannion and Jay Beckner of the Mertz Gilmore Foundation chat with Carnegie Visiting Media Fellow Gail Ablow about how foundations can support voting rights litigation.

Community Improvement/Development

The Rockefeller Foundation and Unreasonable Institute, which works to identify entrepreneurs with the potential to address social injustice at scale, have announced the launch of the Future Cities Accelerator, a $1 million urban innovation competition aimed at spurring next-generation leaders to develop solutions to complex urban problems. Though the competition, ten winners will receive $100,000 each and will participate in a nine-month intensive program giving them access to business leaders, investors, and technical support. Details here.

The Knight Foundation is bringing back its Knight Cities Challenge for a third iteration and will offer $5 million in grant funding for the best ideas in three areas that are crucial to building more successful cities – attracting and retaining talent, increasing economic opportunity, and promoting civic engagement. The competition, which is limited to the twenty-six Knight communities, opens Monday, October 10, at knightcities.org and will close on Thursday, November 3, with winners to be announced next spring.

As part of Generocity's "Leaders of Color" series, Tony Abraham profiles David Gould, a program office at the William Penn Foundation, who has a plan for leveling the playing field for people of color in Philadelphia. You can check out the rest of the series here.

What can we learn about creative placemaking from Jane Jacobs (The Death and Life of Great American Cities)? As the Saint Luke's Foundation's Nelson Beckford reminds us, pretty much everything.

Corporate Social Responsibility

Think the concept of sustainability is a little too fuzzy to serve as a pillar of one's corporate strategy. Think again, argues the Environmental Defense Fund's Tom Murray.

Weekend Link Roundup (July 23-24, 2016)

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

Community Improvement/Development

In the New America Weekly, Heron Foundation president Clara Miller explains how the foundation's recent work in Buffalo, the fourth poorest city in the nation, "started as a response to a Heron board member's referral of the local community foundation" and led to the foundation becoming a trusted neutral convener and connector "for a number of contingents in the community."

On the Knight blog, Lilly Weinberg Lilly Weinberg, program director for community foundations at the Knight Foundation, shares three takeaways from a recent convening of twenty civic innovators who've received grants of $5,000 to implement a project in a calenadr year that improve mobility, a public space, or civic engagement in their home cities.

Criminal Justice/Policing

Reflecting on the killings of Alton Sterling in Baton Rouge, Philando Castile in Minnesota, five police officers in Dallas, and three police officers in Baton Rouge, Open Society Foundations president Chris Stone suggests that the divide between black America and American policing is in part the "legacy of slavery, the legacies of Jim Crow, of lynching, of the repression of the civil rights and black power movements, the legacy of the war on drugs" -- and that efforts to close it must include solutions to racial disparities and the building of mutual trust between African Americans and local police departments.

Environment

Here on PhilanTopic, we featured a pair of great posts this week  -- one by Frank Smyth and the second by Maria Amália Souza -- on the noble, unheralded, and frequently dangerous work done by environmental activists in the global South.

A Conversation With Steve Case: The 'Third Wave' and the Social Sector

Anyone of a certain age remembers when free America Online software — delivered on 3.5" floppy disks and then in CD form — seemed to arrive in the mailbox on an almost-daily basis. Although its genesis was in online gaming, the company soon evolved into an online services company and, by the early 1990s, was one of the leaders of the tech world, innovating and helping to build the infrastructure for the online world we know today. In the words of the company's co-founder and former chair, Steve Case, AOL was part of the "first wave" of innovation driven by the Internet.

By the early 2000s, a "second wave" of Internet-enabled innovation featuring apps and mobile phone technologies had sparked a new communications revolution, with companies such as Apple, Amazon, Google, and Facebook leading the way and birthing a new generation of billionaires. Even as this second wave was cresting, however, a third wave of innovation was forming in its wake. In his new book, The Third Wave: An Entrepreneur's Vision of the Future, Case lays out his vision of an emerging era in which almost every object is connected to the Internet and the network of all networks "stops belonging to Internet companies.…The entrepreneurs of this era are going to challenge the biggest industries in the world, and those that most affect our daily lives. They will reimagine our healthcare system and retool our education system. They will create products and services that make our food safer and our commute to work easier."

PND spoke with Case, who chairs the Case Foundation and, with his wife, Jean, is a signatory of the Giving Pledge, about what these changes mean for the social sector and how nonprofits, large and small, can partner with business and government to solve some of our most pressing challenges.

Philanthropy News Digest: What you have labeled the "third wave" of Internet-enabled innovation will affect many areas of interest to the social sector, including health and health care, education, and food and agriculture. Do you see this next wave of innovation as a boon for nonprofits and social entre­preneurs?

Steve Case: I think it can be. Obviously, there are different folks focusing on different things in different ways. And there will always be an important role for nonprofits to deal with issues that, frankly, only nonprofits can deal with. But some of the sectors you mentioned — health care and education, food, agriculture — I think there's a role there for entrepreneurs to build companies that can have an impact.

One of the big things I talked about in the book — and which the Case Foundation has been championing for years — is the importance of partnerships. Partnerships between startups and other organizations — whether it's other companies, nonprofits, or government — will become more important in the nonprofit sector generally and will have a significant and, I think, positive impact on some of the sub-sectors you mentioned.

PND: The Case Foundation has always emphasized the importance of working across sectors. How do you think the changes brought about by the third wave of Internet-enabled innovation will affect its own work?

SC: I think we'll continue on the path we've been on. We've been talking about some of the issues around cross-sector collaboration for the nearly twenty years the foundation has been around. In the last few years, we've focused on things like impact investing, inclusive entrepreneurship, leveling the playing field so every entrepreneur who has an idea has a shot, and we'll continue with those efforts and try to use all the levers available to us.

Jean [Case] has spent a lot of time on impact investing. Part of her focus is advocating for policy changes that actually free up and expand more impact investing capital. The kinds of things we're focused on at the foundation are very much in sync with the kinds of things I address in the book.

Weekend Link Roundup (May 14-15, 2016)

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

Children and Youth

Brain development in young children is critical to their readiness for school and success later in life. "But preventable poverty and toxic stress can impede and derail a child's early brain development," write Marian Wright Edelman and Jackie Bezos on the Huffington Post's Politics blog. Which is why, "[i]n addition to quality interactions with parents, grandparents and other caregivers, young children need access to a full continuum of high quality early learning opportunities...."

Climate Change

Where's the beef? More to the point, asks Marc Gunther on his Nonprofit Chronicles blog, why aren't environmental groups working actively to reduce meat consumption and the number of factory farms, two of the biggest contributors to global warming?

Corporate Philanthropy

In Fortune, American Red Cross CEO Gail McGovern shares what she has learned over eight years in that position about what business and nonprofits can teach each other.

Data

On the Hewlett Foundation's Work in Progress blog, Sarah Jane Staats has five questions for Ruth Levine, director of the foundation's Global Development and Population Program, about the existing gender gap in data.

Education

How can we fix public education in America? The answer, says the Grable Foundation's Gregg Behr in a Q&A with Forbes contributor Jordan Shapiro, starts with the way kids learn.

On her Answer Sheet blog, the Washington Post's Valerie Strauss has the second part of an email conversation between noted education reform critic Diane Ravitch and hedge fund manager Whitney Tilson, a supporter of such efforts. And if you missed the first part of the conversation, you can catch up here.

Have school-choice policies solved the problem they were meant to address -- namely, the strong link between a child's educational outcomes and the neighborhood conditions in which he or she has grown up? The Washington Post's Emma Brown reports.