University of Chicago Booth School of Business’s Rustandy Center for Social Sector Innovation, this guide provides four research-based ideas you can implement today. The Rustandy Center for Social Sector Innovation is the Chicago Booth business school's social impact hub and destination for people tackling complex social and environmental problems. This information is provided by the Rustandy Center in their downloadable e-book here.
3. Make Your Fundraiser Exceptional
Reframing your annual fundraiser as a unique opportunity can drum up higher donations. Abigail Sussman, associate professor of marketing at Chicago Booth, finds that minor differences in the way a charity frames its donation plea, as either a regular occurrence or an exceptional one, can make a big difference in how likely people are to donate.
For example, researchers altered the wording in online ads for the Alzheimer’s Association’s annual charity walk, so that one ad read “Held annually for Alzheimer’s,” while another read “Only once a year for Alzheimer’s.” People were more likely to click through and donate for the latter, when the walk appeared to be an exceptional rather than a regular occurrence.
4. Give Suggestions... Carefully
Not all donors are created equal. Whether first-time donor or seasoned philanthropist, offering suggested donations can help guide their giving with positive results.
“Small changes can impact people’s choices, especially for people who aren’t sure what their actual preferences are,” says Urminsky, who is conducting research with Indranil Goswami, assistant professor of marketing at the School of Management at the University at Buffalo. Urminsky and Goswami find that setting higher default donation amounts increases how much a donor gives, but can reduce the number of donors. When targeting likely donors, suggesting larger amounts can be beneficial. If boosting participation is the primary goal, setting a low default can increase donation rates.
When setting default donations, understanding your donors and their commitment to giving is key.
Should your company publish a community philanthropy investment / Corporate Social Responsibility annual report?
What do Exxon Mobile, Toyota, Coca Cola Berkshire Hathaway, and Apple all have in common? In addition to being some of the most successful companies in world history, they are all also leaders in Corporate Social Responsibility. Entire teams are deployed to build strategic implementation plans to invest in the communities they serve. They develop their community investment plans and corporate philanthropy alongside the highest levels of leadership and produce annual reports to measure, monitor, and report on their social impacts just as they would report on financial returns to investors.
93 percent of the world's largest companies publish an annual report that details community investment and social responsibility initiatives.
You may already guess we absolutely think every company should have a community investment plan -- but should you also plan to publish an impact report? Don't overthink it. A community impact report could be a small as a quick letter to stakeholders with some facts and figures about philanthropy and volunteerism for year. Or, on the complete other end of the spectrum, you could publish a full multi-page, professionally produced report that holds your company accountable to your commitment to the communities you serve year to year.
Key questions to consider when building out a Philanthropy / CSR / Impact / Community Investment annual report:
Read more about what an annual report could include in Boston College's helpful "How to Read a Corporate Social Responsbility Report" guide.
Don't know where to start?
Take a cue from American Express, CISCO, Blue Cross Blue Shield and others in the sample reports we've compiled for you below. When you take a look at the reports, consider all the different ways companies can measure impact, philanthropy, and achieve their financial goals while doing it.
Motivations matter. They are what drives a company’s Corporate Community Investment. The LBG Framework enables community activities to be classified according to three categories of motivation.
This analysis provides an indication of the strategic nature of the community program, shows the degree to which it is aligned with wider business goals and helps companies understand the extent to which they are driving their contributions OR are being driven by external demands and circumstances.
The three categories of motivation identified in the LBG Framework are:
A general response to a charity request for funds
Charitable gifts tend to be reactive in that they respond to appeals for help either directly from charities or through requests from employees (including matched funding or payroll giving) or in response to short-term or one-off events.
They tend to be ad hoc or one-off contributions, made because it’s ‘the right thing to do’, not because of any strategic aim or anticipated return to the company. Some might refer to this as traditional philanthropy or grantmaking.
Targeted investment, long term partnership, major commitment of resources
Community investments tend to be more proactive and strategic than charitable gifts. They can center on a smaller number of larger-scale, longer-term projects and are often run as a partnership with, rather than a donation to, a community organization.
These projects address the social issue(s) that the company has identified as being relevant to both the company and the community in which it operates. They will often be: linked to a wider community strategy; be measured; and be expected to help protect the long-term corporate interests and reputation of the business.
Primary purpose PR/ marketing, business development, or promotion for competitive advantage
Commercial initiatives in the community are business related activities, usually undertaken by departments outside the community function (e.g. marketing, R&D), to support the success of the company and promote its brand and other policies, that also deliver community benefit.
The most common example of this is cause-related marketing. These are primarily marketing campaigns but involve a contribution from the company to a charitable cause.
Written by Julia M. Profeta Johansson for the Twenty Thirty Blog: 7 Ways to Rethink Your Business through an impact lens.
There are three big questions that you can ask yourself to kick-start the process to become an Impact Business:
If your operation somehow already relates to one of the topics, the first step is to identify a specific target within that topic that you can intentionally improve through your business. The next step is to create a strategy with defined indicators, so you can measure your progress towards that target.
Please note – simply working in an industry related to these topics does not guarantee that you are generating positive social/environmental impact. Unfortunately, this is something that we see happening more and more: people claiming to be impact businesses just because the business is in education or healthcare, for instance. We saw a lot of “green washing” back in the 2000s, when the topic of environmental sustainability became trendy. Now, we are at risk of seeing more “social washing.” That’s why in my previous article I recommend starting slowly and not getting attached to labels.
It can be a long way to really become an impact business, especially if you are not a start-up, but it can be done. And you have to start somewhere.
Going back to our process then, the following workflow may help to guide you through this thinking process of understanding where you are now and what are the first steps you can take.
After thinking about all these questions, there is a tool that can be helpful in framing the impact vision of the business and figuring out which KPIs, on an operational and impact level, will help move the business towards that vision.
This tool is the Theory of Change.
Theory of Change is a framework to define the impact vision of a business. It considers 3 different layers: inputs, outputs, and outcomes. Analyzing its inputs (products, services, etc.), it is possible to understand the outputs and design the desirable outcomes of the operation. Simply put, determine operational indicators in relation to what’s core in your operation (outputs) that in turn will lead to more in depth indicators, the outcomes, which should be the true impact generated, reflecting the impact vision of the business.
The questions to ask when rethinking and repositioning a business, through the impact lens, are practically endless, but I hope this article has provided a starting point if you are interested in the topic.
Julia M. Profeta Johansson is an impact investing and venture capital specialist based in Berlin, Germany. Julia was previously a partner at Vox Capital, the first impact investing fund manager in Brazil. Before that she also worked with Yunus Social Business, Rocket Internet, Itaú BBA, and Mundo InNova. She is more than happy to continue this conversation and help your business start this journey of more intentional impact.
Written by: Sherri Welch
Detroit-based nonprofit Michigan Women Forward will offer $10 million in community impact notes to support Michigan's women entrepreneurs.
Over the past five years, MWF (formerly known as Michigan Women's Foundation) has used philanthropic contributions and money from the state loan fund (that had to be paid back in just three years) to make microloans to 180 women entrepreneurs through loan programs and pitch competitions.
About 90 percent of those investments have been in Southeast Michigan, the rest scattered around the state. The businesses range from drinking vinegars and a coffee shop, a hydroponic farm and a mushroom factory to an architecture firm and a phlebotomy training school.
All but four of those companies are still operating, Cassin said, noting they collectively produced $18.5 million in revenue last year.
With the additional "patient" capital from the new offering, MWF could invest in up to 1,000 additional women entrepreneurs, giving them longer terms to pay the investment back, along with technical assistance and other support to help them succeed, Cassin said.
"If these businesses perform at the same rate the first 180 have performed," the notes could create $100 million in new revenue when it is fully deployed in 10 years, she said.
"It starts to be significant. You start to talk about real impact."
The $10 million Michigan Women Forward Community Impact Note offering is modeled after a similar program the Maryland-based Calvert Impact Capital Inc. offers to fund microloans, or make loans for buildings such as schools or affordable housing, Cassin said.
MWF is seeking:
"Before you're ready for angel investing or venture funding, women, especially, have a very hard time finding small amounts of equity funding," Cassin said.
Issuing notes is contingent upon MWF garnering commitments totaling at least $1 million within 12 months. Individual investors must make a minimum investment of $50,000, and institutional investors must commit at least $500,000.
MWF promises returns of 1 percent for five-year notes, 2 percent for seven-year notes and 3 percent for 10-year notes.
With assistance from Auburn Hills-based Gingras Global Group Inc., it will also provide investors with quarterly impact statements to document the tangible impact they are making in women's lives, Cassin said.
All summer, MWF has been talking with local, private and family foundations and banks "that might want to turn a philanthropic donation into an investment" that could be redeployed again and again to help women entrepreneurs, Cassin said. "We would not have gotten this far if we hadn't received positive reinforcement from them," she said.
MWF has also been talking with foundations in other parts of the state, such as Grand Rapids, that have an interest in investing in the notes to support women entrepreneurs in their regions, Cassin said.
Beyond the support the new offering could bring to women entrepreneurs, microlending is a sustainable business for MWF, Cassin said.
"The more we lend out and (entrepreneurs) pay back ... that gives us this opportunity to really create a larger and larger pool of money we can access" for more microloans, she said. "That's better for getting more women the capital they need and for getting us more flexible, earned income to start paying for the organization instead of having to go out and fundraise all the time."
By Dina Buchbinder
This article first appeared on the Twenty Thirty blog here.
Children are the changemakers of tomorrow – if we encourage them to be their most innovative and creative self. Dina Buchbinder wants to give children an education that not only prepares them for their own future but also makes them agents of change for their communities and beyond. This is how everyone can get involved.
Anyone can be an agent of change, and it is up to everyone to promote community development and active participation. With the 2030 Agenda for Sustainable Development including its 17 Sustainable Development Goals the United Nations provides a comprehensive framework for equality and development. Sustainable Development Goal #4 specifically seeks to promote equal access to quality education. We can all contribute to ensuring not only a quality education but also one that is meaningful for girls and boys around the world.
At my organization, Education for Sharing, we view students, regardless of age, as able to, ready to and passionate about identifying and tackling problems in their own communities. We refer to our Education for Sharing students as changemakers, because we work with the students and entire school ecosystems to equip all students with the skills to improve their own communities through action.
Here are three ways how you can unleash the power of play to form young agents of change in your community:
1. Understand your community.
What problems are the children from your local community facing? To build a connection with children, it is imperative to understand the unique context framing their perspective. Talk to them and to other community members, visit community centers, and learn more about the daily problems they are facing and the solutions they come up with. Even if you have been a part of a community for most of your life, there is always something to learn, especially from children. Learning with your community will allow you to develop a sense of shared vision about what needs to change. Get started!
2. Walk your talk.
Promoting civic values – such as teamwork, empathy, respect, tolerance, responsibility, fairplay, inclusion – is most effective through demonstration. Many community organizations welcome the assistance and support of community volunteers to work with children. Be it your local Boys and Girls Club, YMCA, or Big Brothers Big Sisters, every community has a need, and you can be the example children need to look up to (you will be surprised how much you will learn from them in return).
3. Get moving.
Ninety-one percent of American children have poor diets and less than half get the recommended 60 minutes of daily physical activity (Better Policies for a Healthier America). Globally, 81% of adolescents aged 11-17 years were insufficiently physically active in 2010. Adolescent girls were less active than adolescent boys, with 84% vs. 78% not meeting WHO recommendations (World Health Organization). It seems as if technology has completely taken over, and children are spending increasingly less time outside.
Physical activity and play allow us to know ourselves and our communities better. Being outside and engaging in physical activity invite us all to communicate better to encourage cooperation, and to engage more. It's also a tool for expression and action. As Nelson Mandela said, sport has the power to inspire and unite, to create hope. Encouraging girls and boys to discover the outdoors will enable them to see a world beyond the internet and unleash their potential to improve their own communities. Play outside with them!
These are a handful of ideas to get involved in your community in an effort to promote the formation of young, active citizens. There are many different ways to make global change at a local level, and ultimately each one of us is in a position to affect that change. Change starts with you! How will you contribute today? On your mark, get set, go!
Blackbird Philanthropy Advisors is a social enterprise devoted to Driving impactful and innovative change through philanthropy. Based in South Bend, Indiana, USA.