What Could Be Different?

On a Zoom recently, someone asked: “What do you want to be different?”

Hmmm. What DO I want to be different? If I had a magic wand…

• I’d want teachers to get paid more (like, a lot more)

• I’d want less self-checkout at the grocery store and more human-checkout

• I’d want the weather app on my phone to tell the truth (#firstworldproblems)

• I’d want junk mail to GO AWAY

• I’d want youth sports to be more affordable for all youth

That’s a start, I suppose.

But I’d also say that I want how we view and support nonprofits to change. Nonprofits, which have been with us in the U.S. since the late 1800s, do what the government and the for-profit sector can’t or won’t do. 

We have a ton of complex societal challenges all around us – and nonprofits get in there to make things better, protect civil rights, offer disaster relief, solve problems, boost arts and culture, conduct research, provide health care, address climate change, advocate for policy changes, innovate, and so much more.

But as a culture and a community, are we evaluating nonprofits’ performance and impact correctly?

Last week, my local business journal published their annual Giving Guide, a capture of notable philanthropic gifts and a run-down of several regional nonprofits. And you know what was part of each nonprofit’s profile? This: “What percentage of total revenue goes to cause?”

That was the ONLY financial reporting metric the journal printed.

No. Staaaaaahhhhhp!

Including just that one metric puts the focus on overhead. And what folks want to see is low overhead. But we need to know that low overhead does not equal organizational effectiveness. In order to manage successful projects and programs, organizations must have the capacity to support their infrastructure and human capital. When we purchase our Venti Iced White Mocha, we don’t turn screws on Starbucks about their overhead, right?

We’ve got to let go of the overhead myth; it’s an outdated and narrow view of nonprofits. Nonprofits are ready to deliver transformative impact if we let them, if we support them, if we fund their real cost of doing business. 

For a quick and simple nonprofit financial analysis, look at the organization’s audit, specifically the statement of activities, the statement of functional expenses, and the balance sheet. Look at profitability, expenses, and liabilities. You can also review the organization’s Form 990, which is primarily a compliance document; it’s not so great for understanding operating activity.

Perhaps next year, the business journal will ask instead: “What’s your financial sustainability plan?” Or: “How do you measure impact?” Or maybe: “How do you leverage partnerships?”

I don’t have a magic wand, but I do have major love for the nonprofit sector (and teachers and human-checkouts and accessible youth sports). We can all do our part to make ‘different’ happen.

With love and appreciation,

Sarah

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👟A BRAND TO BOOST

Allyson Felix is the most decorated U.S. track and field athlete in Olympic history. But she’s a badass off the track as well. After a high-profile breakup with Nike ahead of the 2020 Olympics (read her NYT op-ed here), Felix decided to build a shoe company of her own: Saysh. Saysh makes shoes designed specifically for and by women. As part of the company’s commitment to women, Saysh runs a Maternity Returns Policy. When women become pregnant, their shoe size often increases by at least half a size – a permanent change. If you purchase a Saysh shoe and become pregnant, Saysh will send you a free pair of Saysh sneakers in your new size. Felix is a champion for Black maternal health, pay equity, and the next generation of women athletes – and yes, I will continue to buy her shoes.

🚢A PODCAST ABOUT…CONTAINERS?

Ok, so I started Alexis Madrigal’s podcast, “Containers,” before the tragedy with the Francis Scott Key bridge – but seeing images of the Dali stuck in steel supercharged my listening. Containers is a riveting (seriously) 8-part audio documentary about how global trade has transformed the economy and ourselves. After finishing this podcast, I can’t look at Target the same way. I can’t look at coffee the same way. I have a whole new appreciation for ports and cranes and ships and sailors and supply chains and what the container has done for globalization. Most episodes are about 30 minutes long; you won’t be disappointed.

🐝I DON’T KNOW FASHION, BUT I KNOW A GOOD SPELLING BEE

I only learned about Spanish luxury fashion house Loewe through Beyoncé’s Renaissance tour – specifically via the superstar’s wardrobe changes. And even though I will most likely never wear Loewe in my life, I wholly enjoyed this clever and hilarious two and a half minute video that teaches people how to correctly pronounce “Loewe.” The skit is written by Dan Levy and features Levy and Aubrey Plaza. Watch it and laugh and laugh.

💘NONPROFIT LOVE

With Washington banning child marriage JUST last month and with Virginia considering a bill that would remove all exceptions to getting married before the age of 18 (yes, believe it or not, child marriage is very much a real issue in the U.S.), I’m giving major props to Tahirih Justice Center in today’s newsletter. You can learn about Tahirih’s work to end child marriage here. A national nonprofit, Tahirih supports immigrant survivors of gender-based violence seeking safety and justice in the U.S. Give them a follow – and sign up for their Action Alerts if you’re so inclined.