Why Not Get Involved in the Youth Social Entrepreneurship Collaborative?

Grantmakers and nonprofits involved in supporting youth entrepreneurship have ideas for ways the business community can support their efforts. 

Initially published in the January edition of Twin Cities Business Magazine.

Minnesota nonprofits are part of a national philanthropic movement to support economic opportunity for young people by offering training and work experience that increases financial literacy, fosters entrepreneurial thinking and encourages community engagement.

Youth Social Entrepreneurship (YSE) is a growing effort in the sector, such that Minnesota now has an active YSE collaborative, YSE-MN. The collaborative’s members include grantmakers, youth-serving organizations and social enterprises providing employment and job skills programs for young people. YSE participants typically earn money while taking part in these activities. Focused mainly on teens, these programs offer a way to “learn and earn.”

Research published in February, conducted by Dr. Tina Kruse of Macalester College, explored YSE efforts at 30 programs in four cities, including Minneapolis-St. Paul. Kruse’s report documents that 90 percent of YSE programs specifically target low-income youth. She also shows that these programs not only aim to develop business and financial skills, but also have components that promote social and emotional learning. An additional benefit is the reliance of these programs on intergenerational mentorship and learning that builds relationships between experienced businesspeople and young participants. YSE programs also result in economic development that comes from locating youth businesses in low-income neighborhoods.

The YSE movement’s expanding reach and influence in Minnesota was evident at this year’s annual Youthprise summit in October, which was entirely devoted to youth enterprise. The summit brought together an audience of more than 300 youths who learned about successful youth-developed businesses and learned practical skills to advance their ideas and skills. Keynote speakers were Coco and Breezy, twin sisters and Minnesota natives, now 24 years old, who founded the ultra-hip eyeglasses company as teens. The twins talked about using social media to build their brand, and offered advice and inspiration to the hundreds of youths in attendance.

The lunchtime session at the Youthprise summit was a Technology and Training Expo sponsored by the Sundance Family Foundation. The expo helped business representatives in fields such as robotics, welding and commercial sewing industries connect with youths looking for promising career paths. The focus was on exposing them to living-wage jobs that require short-term training. With some manufacturers in Minnesota facing labor shortages, Sundance plans to expand these expo locations in the coming year to connect young people with Minnesota employers who need a larger pipeline of workers. This effort goes beyond Sundance’s direct financial support for youth-based businesses that include Cookie Cart, Northside Fresh, Juxtaposition Arts, Appetite for Change and other social enterprises that are using business development as a tool to employ youth. Participating youths create products and deliver services while receiving job and life skills training in a real-world setting.

Based in St. Paul, the Sundance Family Foundation was established by Nancy Jacobs and Mark Sandercott. The foundation has a primary interest in YSE and has been an engine for much of this work in our region. Sundance’s total grantmaking in 2015 was about $385,000, dwarfed by the grantmaking budgets of Minnesota’s largest philanthropies. The foundation is nonetheless a vocal advocate for YSE, commissioning research, organizing community meetings and actively seeking partners to expand the field.

It makes sense for Minnesota businesses to get involved in YSE, and fortunately there are multiple paths available. Many YSE enterprises offer goods and services that you can purchase. You can buy cookies for your office from Cookie Cart, the bakery and youth-development program on West Broadway in north Minneapolis (they deliver). Or shop at Dream of Wild Health when they visit local farmers’ markets to sell specialty crops and indigenous foods. You can donate clothing or shop at Sisterhood Boutique, a women’s used-clothing store in the Cedar-Riverside neighborhood in Minneapolis that employs East African young women as interns. There are many more examples in the Twin Cities.

Jacobs says these programs need a larger pot of money; with more dollars, existing programs could expand, and new programs could begin. That’s tied to a second need: a stronger evidence base—showing that the programs work as a way to increase economic opportunity for the youth involved. If these programs can establish a strong evidence base, they will be more competitive for federal funding, says Jacobs. The foundation and Wilder Research are working to build that evidence base among a cohort of 15 Minnesota-based YSE projects.

Finally, Jacobs says that the YSE movement needs industry champions. “There needs to be more networking and dialogue between the various markets in our ecosystem,” she says.

YSE needs partnerships with companies, and access to the skills and resources in the business community. It needs people who want to connect and to create the bridges and pipelines that help YSE programs successfully serve low-income youth. Could that champion be you?

Our region has one of the highest poverty rates for people of color among metropolitan areas in the U.S., with 46 percent of African-Americans living in poverty, compared with 9 percent of their white counterparts in Minnesota. There is an urgent need to create paths for low-income youths to earn family-sustaining wages. YSE models are promising, and they need more connections and support. I’m guessing that many readers of Twin Cities Business magazine are in the perfect position to help.

Six Ways to Ensure that Nonprofit Succession Fails

The warning bell has been sounding for years, telling nonprofits that the sector will face an enormous leadership shift as baby boomers retire and new leaders take the helm. The 2006 Bridgespan Group study The Nonprofit Sector’s Leadership Deficit predicted that the sector would need 80,000 new senior leaders per year by 2016, and we’re reportedly on track. Yet too few boards, grantmakers and leaders are doing everything they can to prepare for leadership succession. Here are all-too-common practices that ensure failure.

1} Don’t talk about it

Succession planning is a deliberative process, and mistake No. 1 is never talking about it. Succession for all positions should be a continuous topic among managers, and boards would do well to request regular reports on how managers are developing employees and preparing for departures. A well-run nonprofit should plan for succession across all positions. It should encourage employees who seem eager and ready for new challenges and “stretch assignments,” and it should assess risks that could result from any single person departing. Board members from major corporations can help nonprofits by sharing leadership development and succession practices from the business sector, where HR departments often have well-honed practices in this area.

2} Don’t give the leader regular and disciplined performance feedback

Wise is the board that has a disciplined approach to performance feedback for a nonprofit’s chief executive. Beyond the obvious goal of helping the CEO succeed, in doing so boards generally seek input from internal and external constituents. These fresh perspectives can help boards understand the current CEO’s strengths and shortcomings, form relationships inside and outside the organization that will be helpful during succession, and engage in conversations that deepen their knowledge of the organization’s work and impact. These additional benefits make the CEO’s performance review an even greater imperative for the well-managed nonprofit.

3} Don’t engage the board in strategy and planning

Successful CEO succession requires an engaged board, and engagement is a practice and a habit that is best developed before necessity or crisis requires it. Boards that have been deeply engaged in strategy and planning will not only be well-positioned to carry the organization’s mission forward during a time of change, but also will be well-equipped to identify the characteristics of the leader they need to seek. Too often, strategy is developed at the senior leadership level and “presented” to the board, without the benefit of board members’ best thinking, involvement and experience. (See my earlier column, “Is Your Board Bored?” [bit.ly/1e0UlW6], about ways to make board involvement meaningful to an organization’s strategy and success.)

4} Don’t do anything to develop next-level managers

Both so-called “heroic leadership” and “hub-and-spoke” leadership styles define many nonprofit CEOs. In either instance the organization can then come to rely on the CEO to do anything and everything to keep the organization in motion. Maybe it’s the lifelong commitment to nonprofit causes that underlies so many nonprofit leaders’ willingness to play the hero. Unfortunately that often means forgoing a distributed leadership style that is team-based and less reliant on any single individual. CEOs and boards should give next-level managers and staff every opportunity to participate and excel in organizational leadership, and they should encourage them to enroll in professional development courses and activities that build their capabilities. As a further benefit to staff investment, one of these individuals may be a great candidate for the CEO role. Internal succession can be an effective way to ensure continuity and a smooth transition.

5} Don’t do emergency planning

At the very least, organizations should have an emergency plan for how they will manage in the event of an unexpected departure, including an illness, accident or disaster. This requires attention to both the people who may be asked to assume new responsibilities quickly and to organizational systems for information management. Key documents, passwords, calendars, contacts and process information should be centrally located, with documentation so that they can be retrieved quickly in an emergency. For certain bank accounts and financial data, password-protected information may be all but permanently inaccessible without the correct credentials. The well-run nonprofit has a documented emergency plan and a practice of updating it.

6} Don’t build a healthy balance sheet

Unrestricted assets, or money in the bank, give a nonprofit room to chart its own destiny and withstand the speed bumps that can result from a change in leadership. Donor loyalties may be tied to personal relationships that come to an end when the CEO departs, and other income streams may shift when leadership changes. Developing and maintaining a healthy balance sheet, with appropriate reserves, is a best practice at all times and critical during a leadership transition.

There are mountains of literature about succession planning. Among the most helpful is a book authored by Susan Kenny Stevens, formerly a Minnesota-based Clifton Larson Allen partner with deep interest in founder succession. Her book, Nonprofit Lifecycles: Stage-Based Wisdom for Nonprofit Capacity, is an important contribution to this subject. Beyond Stevens’ book, there are many resources compiled in an excellent list on the Foundation Center’s website. You can find it at foundationcenter.org/getstarted/topical/succession.html.

A CEO transition is not a question of whether it will happen, only of when. We’ll all benefit if Minnesota nonprofits get prepared.

Equity and Empathy, an interview with Eric Jolly, new CEO of Minnesota Philanthropy Partners

In August, Dr. Eric Jolly became president and CEO of Minnesota Philanthropy Partners, a group of foundations that includes the St. Paul Foundation. Jolly, a Ph.D. psychologist, had an extensive career in academia before joining the Science Museum of Minnesota as president in 2004. He has a substantive track record of leadership focused on excellence and equity in the nonprofit sector. Twin Cities Business sat down with him recently to learn more about Jolly and his vision for the organization he now leads.

Q} You had a great job leading the Science Museum. What made this new job attractive?

{A} During my first academic appointment I also held a Kellogg National Leadership Fellowship and I studied international philanthropic diplomacy. I was curious about how diplomacy affects the recipient as well as the giver, and how people distort their goals, values and ambitions because of the transaction itself. Since then I’ve always been in the nonprofit sector, and I’ve been on foundation boards most of that time. So that’s one track. I’ve always been curious about and involved in the [philanthropic] sector and what the sector can accomplish.

I had always been involved throughout my faculty positions in issues of equity, whether it was founding the National Institute for Affirmative Action and Diversity at the University of Nebraska or serving on commissions that helped people of color, women, minorities and persons with disabilities. The goal was to give opportunity and voice to the many communities that didn’t have a place at the table.

I wanted to come to the Science Museum because it’s a wonderful institution, but also as an opportunity to demonstrate how an institution can, in its community, lead the nation. And we did that.

I fell in love with St. Paul. I had a great run at managing a great social and educational institution for our state. Now I get to care for and cherish all of the social and cultural institutions that grow our opportunities in the state.

{Q} You’ve run an organization that has to raise a lot of money. How will that affect how you lead an organization that gives money away?

{A} I hope it brings a better understanding and empathy for the position of those who want to change the world and who find seeking the funds to do it somewhat of a distraction to their passion. I hope it helps me find ways to serve them that doesn’t cause us to distort their mission or their approach from where their heart and mind would take them, because it’s very easy to be on this side of the [funding] equation and think you have a good idea. And I suspect the challenge for me will be reining in the enthusiasm of those who have the financial resources, including myself, so that we don’t distort the work of those who have their feet on the ground.

{Q} What are the likely themes of your leadership?

{A} Our themes are going to be creating a healthy community that has active and well-tended agents of change who have a passion for their work. We’re going to be focusing on equity, particularly racial equity, and we’re going to use economic opportunity and educational opportunity as two great drivers, though not the only ones. More than anything else, we’re going to recognize that the community has the solutions, and one of the better things that we can do is help create healthy agents of change at every level of development. We need to nurture the young person and invest in some of their nascent ideas, to take a chance on someone passionate and inexperienced. And we need to assure that those with experience stay in the business of helping our community grow, so they are there to nurture the next generation of leadership.

{Q} What messages do you have for the business community?

{A} That our work to create a healthy nonprofit sector is what creates a fertile environment for staff retention and staff recruitment. We help make the community you want to be in, whether it is a community of opportunity, a community in which the people you meet make you feel welcome and secure, a community of quality education or a community of great hearts. There’s something magical that you can come to the Twin Cities, and greater Minnesota, and see a world-class chamber orchestra, phenomenal opera, theater, public radio. We help create all of that. The fiber of our community is strong because our businesses contribute to it. It is a great strategy. Towns that just work on public safety and clean streets, but don’t work on filling the heart and soul, miss making a wonderful community. We know how to celebrate life here.

{Q} What else is on your mind as you begin your work?

{A} Coherence is the logical and consistent alignment among independent sectors, entities and players toward a shared goal. The toughest part of getting coherence is getting these independent sectors to align. We don’t give away enough money to solve the problems of this community, but together—aligned with others—we have enough energy to see that they get solved.

Beyond that, philanthropy is about recognizing that the community has the resources and the knowledge to solve its problems. We need to give it the wherewithal. What I can’t wait to do is to devise the parts of this program that allow me to get out of the way and watch.

 

 

Minnesota Nonprofits Changing the World

Minnesota is home to a burgeoning community of international NGOs

During the 1980s and 1990s, Abul Sharah traveled internationally doing business development for Eden Prairie-based MTS Systems and Alliant Techsystems. Born in a small village in northeastern India, he earned a Ph.D. in engineering physics in Canada and had initially moved to Minnesota to work at Tectonics Research in 1972. But a business trip back to India in 1996 changed his life. He met Mother Teresa, and was inspired to do something for his native country. “I was determined I would find a way to give back,” he told me.

Today Sharah is the founder and president of International Village Clinic, a 13-year-old grassroots organization that serves 130 rural villages in northeastern India. IVC provides both curative medicine through health clinics treating patients at a nominal charge, and free prevention programs. Prevention targets malnutrition, vaccinations and support for pregnancy, infant and early childhood care. IVC employs four doctors among a staff of 60 in India and has no paid administrative staff. With an annual budget of $100,000 to $150,000, IVC reaches 250,000 people who would not otherwise have access to these medical services. Rotary International has been a major supporter, as have individual donors.

IVC is one of hundreds of nonprofits in Minnesota whose mission is international relief, development, education, environmental protection, among other causes. Called NGOs, which stands for “non-governmental organizations,” their origin stories often are similar to IVC’s. Their dynamic founders have traveled internationally and been inspired to respond to the challenges faced in developing countries, or, as immigrants, they feel a desire and a duty to help their native countries.

Evidence of this growing cohort of internationally focused organizations is the surge in membership at MINN, the Minnesota International NGOs Network. MINN now boasts some 1,500 individual and about 80 organizational members. MINN’s annual Idea Summit will be held this year Oct. 16 at the Humphrey School of Public Affairs at the University of Minnesota. Several hundred people will gather for the all-day meeting to network, learn and exchange expertise. The 2015 summit theme is “Fostering Minnesota’s global engagement,” and the keynote session, a dialogue on international refugee issues focused on Minnesota’s role, will be a conversation between former Vice President Walter Mondale and Dr. MayKao Hang, president and CEO of the Amherst H. Wilder Foundation. Registration is open to anyone interested. To learn more, visitminnesotangos.org/ideas.

MINN publishes a directory of Minnesota organizations working internationally and lists these organizations on its website. Many international organizations are one- and two-person “mom and pop” shops with founders raising money from friends, family, church members and service clubs. Karen Baumgaertner, MINN’s co-founder, described international work as “enriching but depleting. You aren’t embedded in a community that supports you; you are oceans away, so you are desperate for collegial support. At MINN you can find people who ‘get’ what you do. MINN plays a major role in refreshing, renewing and connecting members to each other for learning and mutual support.” MINN also is working to extend the network to first-generation Americans who want to start international nonprofits. “They don’t always understand how philanthropy works, or our local ways of doing business in the nonprofit sector.”

One way international nonprofits have found to raise money is through GiveMN, a web portal for charitable contributions in Minnesota. Each November, GiveMN rallies the community in “Give to the Max Day,” where thousands of organizations ask supporters to donate online. In 2014, more than $18 million was raised on Give to the Max Day. Part of the total was $400,000 given in relatively small amounts to U.S.-based nonprofits focused on international projects.

More than 250 of the U.S.-based nonprofits concentrating on international projects are now using the GiveMN portal for fundraising. Andy Goldman-Gray, GiveMN’s interim executive director, reports that “anecdotally, the younger you are, the more likely you are to give to international causes.” This trend, coupled with GiveMN’s robust digital platform that younger donors are comfortable using, is particularly helpful for small and emerging organizations. They can reach individuals directly without the need to navigate the formal and cumbersome application and decision-making procedures of organized philanthropy. Goldman-Gray said that these organizations do well on the GiveMN platform. “It’s interesting to see how Minnesotans are making a difference internationally, and that so many people want to support international causes being led from here.”

A look at MINN’s membership shows that large nonprofits also are involved. The American Refugee Committee, Books for Africa, Feed My Starving Children, the Center for Victims of Torture, and Land O’Lakes International Development are some of the larger organizations in the MINN membership. Work in Africa is a focus of many Minnesota nonprofits, according to Sara Stalland McGarraugh, MINN’s current (volunteer) president; Southeast Asia, and South and Central America also are hubs.

You can learn more about MINN and its members on its website or attend the Idea Summit to meet the passionate and dedicated people working internationally from our state. You’ll see the ways Minnesotans are exporting our community’s well-known reputation for generosity, civic engagement and a concern for the welfare of those in need. Some people talk about making the world a better place. These organizations not only talk the talk: they walk the walk.

Hiring a Nonprofit CEO

When "designed by committee" is not a bad thing

Originally published in Twin Cities Business Magazine, September 2015.

The process of hiring a CEO can be an especially daunting task for nonprofit boards.

It’s time-consuming and requires wrangling disparate volunteer board members into a cohesive group that can interview candidates and agree on the right one to hire. Frequently, nonprofits cannot afford to hire a search consultant or firm to help them manage the process and instead have to dig in and get the job done themselves. With or without a search firm, it’s hiring by committee.

In fact, it’s the search committee that is the distinguishing characteristic of nonprofit executive search. “Nonprofits have a participatory culture,” Lars Leafblad tells me. Leafblad is one of two principals in Ballinger Leafblad, a one-year-old firm specializing in what they term “civic search,” working in the universe of foundations, nonprofits, associations and higher ed institutions.

“A lot of voices are engaged,” he says, “and the process is never streamlined. This is both a strength of nonprofit search and the challenge.” Cindy Chandler of the Chandler Group agrees. “The size of the search committee in nonprofits can be large, 12 or more people,” she says. “Nonprofits want not only board members but often other outside stakeholders involved in the search process.” Here’s some advice from these experts for nonprofits facing the CEO search challenge.

Recognize there is a difference

Board members accustomed to hiring in the business sector are likely to find the nonprofit hiring process cumbersome. However, effective nonprofit leaders must be able to relate to and engage with a very diverse set of people, including board members, staff, constituents, funders, government officials and program participants, to name a few. Search committees need a sense of how effective candidates are in front of these diverse groups. If you’re the candidate, “you should come into the job with your eyes wide open,” says Leafblad, “having met with the organization’s funders, partners and donors.” Further, boards should plan a multifaceted input process to see all sides of a candidate’s strengths. “Don’t just interview,” Leafblad suggests, “but also see the candidate’s writing ability, their group and one-on-one interactions, and be sure to do a deep check with multiple references who know the candidate well.”

Get aligned

Nonprofits should spend time carefully developing a job announcement and agreeing on the competencies needed. Often this requires one-on-one interviews with staff, board members and stakeholders who weigh in on the organization’s current status and future needs. Chandler says that it’s not unusual to interview two dozen people or more to inform the development of a position announcement. “This alignment should never be cut short,” Chandler says. “Where we see failure in these processes are times when getting to alignment in the beginning—before the search began—was incomplete.”

Watch out for the echo chamber

Nonprofits and the people in them tend to operate within known networks of people, and it’s among these networks that organizations typically look for candidates. But, says Leafblad, “you have to figure out how to tap into new pools of talent. This requires intentionality about how broadly the search will be conducted.” Leafblad urges organizations to think through all of the possible connections they can make to inform as many people as possible about the job opening. The right candidate may not be within the known network; plus, the process of reaching out to new people and groups has long-term benefit.

Draw on available resources

Free and low-cost information and workshops are available from places such as Minnesota’s MAP for Nonprofits, the national BoardSource project and websites such as GuideStar. They’re full of resources for nonprofit boards involved in succession planning and executive searches. Boards do not need to reinvent the wheel in terms of ideas and templates for the search or the interviewing and hiring process. It’s also helpful to talk to other volunteers who have been through the process recently and can share their perspectives and lessons learned.

Don’t stop with hiring

“Whatever you do, don’t stop with hiring,” Leafblad warns. “Successful onboarding and supporting the leadership transition is hugely important.” Search firms often provide independent onboarding support, something that organizations working without consultants may not consider. Making sure a transition committee is in place is one approach. Forming a “kitchen cabinet” for the new leader is another.

A significant difference between the business sector and nonprofits is what Leafblad calls the difference in “succession methodology.” Businesses, in his experience, “are more likely to consistently think about succession in all leadership positions across the organization.” He suggests an annual or even quarterly analysis of key leadership roles and identification of who in the organization is being prepared for new responsibilities. Adopting a succession mentality can help organizations prepare for the inevitable transitions that can be destabilizing when they’re not anticipated.

What’s the reward for a well-run executive search process? “A search is really an engagement strategy that allows nonprofits to connect with key people, align around the organization’s future and create a transformational moment. Then everyone benefits—the nonprofit and the community it serves,” he says. For those going through this process or planning to, there’s a lot of help available. Establishing a careful, broad-based and inclusive process is the essential first step to hiring well. TCB

Help from Search Firms

Three Minnesota-based foundations recently contracted with search firms to assist them in finding successors for retiring top executives. The new leaders of the foundations are:
Ben Cameron | President | Jerome Foundation | St. Paul
Eric Jolly | President | Minnesota Philanthropy Partners | St. Paul
Tony Sertich | President | The Northland Foundation | Duluth