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In case you haven't been following it, there's something really exciting happening on the Internet that I believe deserves the rapt attention all nonprofit organizations, foundations and donors these days.
It's important on a number of levels. It's an amazingly fascinating story. It provides insight into financial challenges facing nonprofits right now. It illustrates the power of collaboration. It reveals how donors think and behave. And it provides a model for radical transparency in communication.
Here's the backstory:
FORGE, a rather new and small nonprofit organization that helps refugees in Africa rebuild their communities changed its approach and found itself about $100,000 short of operating funds for the rest of the year (its annual operating budget is about $400,000).
Executive Director Kjerstin Erickson decided to use her blog on the Skoll Foundation's Social Edge website to be completely upfront about the challenge FORGE was facing, even though by doing so she faced the possibility that donor confidence in the organization might be eroded.
The story is playing out live on her blog as we speak. You can pick up the story where it is now and work backward, or begin with the entry on 10-17-08 titled "We're in trouble..." and read upward through "How we got into this crunch" and "Tough decisions in a time of crisis" and so on. (To get maximum insight, start reading her blog at the beginning).
Others from the nonprofit and foundation world responded, and on her blog Kjerstin honestly and openly answers their questions and explains the organization's approach and strategy. There is an unusual -- and maybe even unprecedented -- level of candor visible in this conversation among those needing money and those donating money. For sure, these conversations take place. But not in public, with anyone and everyone able to listen in.
Sean Stannard-Stockton of Tactical Philanthropy took an interest and pulled in a number of resources to help FORGE as it goes forward. With one condition: FORGE had to agree to let the entire story be told in public.
As Curtis Chang, one of the consultants Sean recruited put it, "We agreed but I stipulated that the normal client expectations of confidentiality would then not apply. For instance, if I discovered that FORGE really didn’t have a prayer, well, then I would blog about that. If you’re going to survive by the sword of transparency, you’ve got to be ready to die by it. Kjerstin agreed without hesitation."
I think it's so instructive for all of us. And we're still in the middle of it... I encourage everyone to catch up now and follow the story as it moves forward.
You can track it from several different perspectives: on Kjerstin's blog, at Tactical Philanthropy, and Consulting within Reach.
Readers are invited to add their suggestions and comments. As Sean puts it, "All of this is going to play out live. If you don’t like where things are headed, speak up and you might just change the outcome."
And we at MMT would love to see a discussion on our own blog about this... how do you feel about this kind of "radical" transparency? Is this an activity your organization would be willing to participate in? What do you think we have to gain or lose by this? We'd love to know what you think...
I must say, this is way better than any reality tv...
Marie
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Marie Deatherage
Director, Communication & Learning
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Thanks so much for highlighting the story. I am sure it is deeply reassuring to FORGE to hear that a funder thinks all of this is good.
Nothing beats candor and sharing information for building communities of support. Good for Kjersten and others with FORGE.
Formulating and executing solutions on the scale we’re all working are monumental tasks even with all circumstances known to the problem solvers. Outcomes cannot be optimized if relevant data are hidden from the solutions team. Scarce capital must only be directed to projects in which the participants collaborate openly.
Net2 has another great blog post on transparency with the story of Dell: http://www.netsquared.org/blog/jamesvito/transparency
Here's the latest from Sean of Tactical Philanthropy on the FORGE story:
http://tacticalphilanthropy.com/2008/12/why-im-investing-in-forge
I am fellow blogger on socialedge (Dr. O) I have been wondering how all of this will play out and it seems it will play out well. I applaud Kjerstin for her innovation and courage. However, when I discussed this strategy with another NPO I work with that is looking at a shortfall this year, they blanched. Their comment: we can cut costs and use savings; to admit we were short could turn off our donors and end us. The stakes are too large.
We will see.