Nonprofit Sector

Mohammad Anas Wahaj | 14 oct 2015

According to a recent report by Commonwealth Fund, 'U.S. Health Care from a Global Perspective: Spending, Use of Services, Prices, and Health in 13 Countries', based on data by OECD (Organization for Economic Cooperation and Development) and other cross-national analyses, the US spent US$ 9086 per person on healthcare in 2013, which corresponds to 17.1% of GDP. This was about 50% more than the second highest spender (France-11.6% of GDP) and almost twice of what UK (8.8%) spent. In US if the patients are unable to pay their healthcare bills, it either becomes a bad debt for the patient or is written off as 'charity-care', adding up to US$ 57 billion in uncompensated care. To study and analyse this aspect of healthcare, researchers from Northwestern University - David Dranove, Craig Garthwaite, and Christopher Ody - as part of The Hamilton Project by Brookings Institution, argue that there is room for efficiency improvement in the charity-care system and the supply and demand for charity care are not geographically inclined. This means that hospitals that have more resources available for charity-care, ones mostly located in high-income areas, are not located in the places where people most need it, i.e. the low-income areas. To rectify this situation, researchers propose a 'floor-and-trade' system, in which all hospitals are required to provide some charity-care to low income patients. One of the researcher, Craig Garthwaite, comments 'As the Affordable Care Act has rearranged the flows of patients to hospitals and decreased the number of uninsured Americans, it's a good time to reconsider how hospitals commit themselves to serving their surrounding communities.' Read on...

The Atlantic: Who Pays Hospital Bills When Patients Can't?
Author: Bourree Lam

Mohammad Anas Wahaj | 10 oct 2015

According to Global Impact Investing Network (GIIN), 'Impact investments are investments made into companies, organizations, and funds with the intention to generate social and environmental impact alongside a financial return...The growing impact investment market provides capital to address the world's most pressing challenges in sectors such as sustainable agriculture, clean technology, microfinance, and affordable and accessible basic services including housing, healthcare, and education.' The recent report by Wharton School of the University of Pennsylvania, 'Great Expectations: Mission Preservation and Financial Performance in Impact Investments', based on the evaluation of financial performance of 53 impact investing equity funds that include 557 individual investments, explores the two most important aspects of impact investing - financial returns and long-term impact. The study suggests that - in certain markets segments - investors might not need to expect lower returns as a tradeoff for social impact. According to authors of the report, Wharton finance professors David Musto and Chris Geczy, certain market segments of funds in the sample yield returns close to those of public market indices. Prof. Geczy explains, 'Our research fills a near-void of rigorous analysis of private investment and social impact outcomes and most importantly the link between the ideals of doing well and doing good. The study examines the tension between profits and purpose, also bringing to bear analyses characterizing relative performance as well as statistical certainty about the result. It represents an exciting initial advancement in our ongoing social impact research agenda.' Read on...

GlobeNewswire: New Wharton Research Shows "Doing Well While Doing Good" Is Viable Investment Strategy, Investors Seeking Social Impact Can Receive Comparable Returns
Author: Peter Winicov

Mohammad Anas Wahaj | 26 sep 2015

Nonprofits and charitable organizations need to evolve their processes, systems and strategies alongwith the technology-driven changes that are happening in businesses, governments and the world in general. Effective, efficient and timely fundraising and financing of projects is critical for the survival and success of nonprofits. According to the report 'The Business of Nonprofits: Amplify Your Fundraising Success With New Technologies and Proven Business Practices' by 121Giving.com, based on the survey of 450 nonprofit executives and program directors in the US that was conducted in July 2014, '54% of nonprofits raised less than 25% of an intended goal during their last online fundraiser. Additionally, more than 1/3rd of those surveyed describe their adoption of technology as "struggling" and 74% state that they collected less than US$ 5000 in valued goods from a donation drive.' The survey also found that fundraising, donor solicitation and financing of daily operations are challenges for many nonprofits. Moreover, the results of the survey indicate that most nonprofits still rely on traditional processes and outdated technologies that fail to deliver fundraising outcomes required to succeed in today's competitive digital-driven environment. Other main findings of the report are - 54% of nonprofits do not ask retailers for discounts on products; Only 2% of nonprofits raise money online to buy products in stores or online; 22% ask the community to donate products; 68% of nonprofits pursue grants to cover expenses for their programs; Only 7% of nonprofits use online crowdfunding tools to raise funds. Liz Deering, co-founder of 121Giving.com, says 'Nonprofits are wasting precious time, dollars and resources to raise funds and procure the products they need to run their operations.' The report points out that nonprofits are indeed making attempts to improve their operations through proven business practices (33% of nonprofit leaders upgraded hardware or software in 2014 to improve programs). The report also highlights the opportunities for nonprofits to reach their campaign goals through - Adopting latest business practices; Focusing on project-specific funding needs while seeking grants; Ask, negotiate and bargain like a business to obtain product discounts; Using data and analytics for measurement; Utilizing social media connected individuals and communities to publicize initiatives and programs; Investing in technologies to improve efficiencies and reduce labor intensity of core operations. Read on...

PRWeb: Are Nonprofits' Operations Keeping Pace With Advances In Fundraising?
Author: Sara Leiter

Mohammad Anas Wahaj | 26 sep 2015

Timely access to funds is one of the critical component for the survival of nonprofits. Their funding sources are limited and mostly include endowments and grants. Moreover, to obtain funding from traditional sources like banks and financial institutions is difficult. They should find innovative ways to raise and create funds and achieve long-term sustainability. According to Ryan McCrary, founder of Great Outdoor Adventure Trips (GOAT), 'Most nonprofits see rapid growth right away but quickly stagnate. GOAT, a youth development organization for at-risk students, followed that format. To continue growing, nonprofits must innovate like any other company.' He suggests creating a side revenue stream, that may be in the form of a business, which can support the nonprofit. Creating a monthly donor group is another approach that he suggests. Moreover he argues that nonprofits shouldn't shy away from generating profits and should re-invest them in the company. Individuals who have ideas and solutions to do social good can also model their startups as for-profit social enterprises. Moreover, they can also join board of existing nonprofit and share their ideas and assist it to innovate and grow. Read on...

Upstate Business Journal: Nonprofits face unique startup challenges
Author: Benjamin Jeffers

Mohammad Anas Wahaj | 21 sep 2015

The United Nations Sustainable Development Summit 2015 will be held in New York from 25 to 27 September 2015, to adopt the post-2015 agenda for sustainable development. The 2030 agenda includes 17 Sustainable Development Goals (SDGs) that will replace the eight Millennium Development Goals (MDGs) that were adopted by 193 UN member states in 2000 to root out poverty from the world. The 17 SDGs continue to build upon MDGs to end poverty alongwith fighting inequality and injustice. These goals will also include tackling the concerns of climate change, global health and hunger. Helen Clark, UNDP Adminstrator and former Prime Minister of New Zealand, says on the UNDP.org, 'World leaders have an unprecedented opportunity this year to shift the world onto a path of inclusive, sustainable and resilient development...If we all work together, we have a chance of meeting citizens' aspirations for peace, prosperity, and wellbeing, and to preserve our planet.' The 17 SDGs are - (1) End poverty in all its forms everywhere (2) End hunger, achieve food security and improved nutrition and promote sustainable agriculture (3) Ensure healthy lives and promote well-being for all at all ages (4) Ensure inclusive and equitable quality education and promote lifelong learning opportunities for all (5) Achieve gender equality and empower all women and girls (6) Ensure availability and sustainable management of water and sanitation for all (7) Ensure access to affordable, reliable, sustainable and modern energy for all (8) Promote sustained, inclusive and sustainable economic growth, full and productive employment and decent work for all (9) Build resilient infrastructure, promote inclusive and sustainable industrialization and foster innovation (10) Reduce inequality within and among countries (11) Make cities and human settlements inclusive, safe, resilient and sustainable (12) Ensure sustainable consumption and production patterns (13) Take urgent action to combat climate change and its impacts (14) Conserve and sustainably use the oceans, seas and marine resources for sustainable development (15) Protect, restore and promote sustainable use of terrestrial ecosystems, sustainably manage forests, combat desertification, and halt and reverse land degradation and halt biodiversity loss (16) Promote peaceful and inclusive societies for sustainable development, provide access to justice for all and build effective, accountable and inclusive institutions at all levels (17) Strengthen the means of implementation and revitalize the global partnership for sustainable development. Read on...

UN Sustainable Development: Transforming our world - The 2030 Agenda for Sustainable Development
Author: NA

Mohammad Anas Wahaj | 13 sep 2015

Social enterprises seek to develop innovative solutions to the real world problems and engage with local communities. With democratization of technology and availability of funds more entrepreneurs are able to create social enterprises and become part of the development landscape. Along their evolution to sustainability and during the process of scaling up, social enterprises face a range of challenges. Accelerator programs can play an important role in assisting them to overcome obstacles and grow. According to Anya Lim, co-founder and MD of ANTHILL Fabric Gallery, 'More than the financial resources, we need mentorship and guidance. We felt that being in an accelerator program will increase our accountability to implement changes for growth more efficiently and effectively.' Manny Alkuino, CEO and chairman of Sidlakpinoy, also acknowledges the role of accelerator in helping to reach next level in terms of both operations and social impact. Both these organizations are part of Philippine-based Impact Investment Exchange Asia's Impact Accelerator program. Following are the suggestions they share with other social entrepreneurs who are working to scale up their enterprises - (1) Do it at the right time. (2) Have a clear company ethos and a solid team. (3) Know your numbers. Know your market and details of issues you are tackling through proper research. (4) Engage your team and stakeholders in the process. Read on...

Devex Impact: 4 tips for taking your social enterprise to the next level
Author: Liana Barcia

Mohammad Anas Wahaj | 06 sep 2015

Collaborative approaches in tackling healthcare can play an important role in reducing costs and also lessen burden on already overstretched healthcare systems. In such a collaborative setting niche and focused nonprofits can share some responsibilities of healthcare providers and lessen their loads. The disruption of healthcare and enactment of Affordable Care Act have forced hospitals and physicians to evolve new ways of imparting efficient healthcare and redirect patient care from the acute care setting to primary care 'medical homes' that focus on prevention and coordinate patient care. The New York State Medicaid reform is a step in this direction and intends to bring nonprofits and government together to address issues that influence healthcare like food, housing, finances etc. Such coordinated preventative measures are expected to reduce emergency visits to hopsitals. Medicaid funding to such programs that have been undertaken by nonprofits would enhance their capabilities and they can more holistically work towards providing solutions to residents to live healthier lives. Moreover similar partnerships will also help in tackling chronic diseases. Shoshanah Brown, executive director of a.i.r. NYC, an organization that helps asthmatic children in poor neighborhoods, says 'Community-based organizations like ours that are close to the ground and are very much in the community can keep patients healthier.' Montefiore Medical Center in collaboration with YMCA conducts a program to prevent pre-diabetic patients from full-blown diabetes with a 16-week class. Patient with mental illnesses or substance abuse issues will also benefit from this reform for collaboration as healthcare providers can work with a housing group so that they have a safe place to live and stay out of hospital. Read on...

Nonprofit Quarterly: Could Collaborations Mean Better and Less Costly Healthcare?
Author: G. Meredith Betz

Mohammad Anas Wahaj | 26 aug 2015

According to a report, 'Resourcing Social Enterprises: Approaches and Challenges', lack of standard definition and limited knowledge and awareness about 'Social Enterprises' among financiers and general public are the key sourcing challenges. The report focused on assessing the resilience of social enterprises in Western Australia. Lead author of the report, Professor Jo Barraket of Swinburne University, says 'Social enterprises are a hybrid form of business. It's still a relatively new concept to the market, and mainstream financial providers don't necessarily understand it...We don't have any consistent standard for social-financial accounts in Australia. So the tools that social enterprises have to communicate their business operations to external financiers are still underdeveloped and that makes it challenging.' Moreover Prof. Barraket adds that most social enterprises look towards generating funding internally similar to small and medium businesses. Accessing external equity is constrained depending on their legal form thus limiting external finance opportunities. Report also identified the governance structure as a further challenge, with financial resilience not considered as a top priority particularly in case of social enterprises that work within larger not-for-profit structures. Prof. Barraket explains, 'The boards in those contexts are quite rightly having to juggle requirements of larger charitable concerns, and therefore not always able to respond in the same sorts of ways that a small business that's not governed by such a large governance structure would do.' Prof. Barraket suggests that communication has to get effective between the supply and demand, those in the business of social finance understand the needs of social enterprises, and these enterprises have right tools to explain effectively to financiers. Moreover this change will take time and requires culture change and different thinking, both within the social enterprises and organizations that intend to support their development. Read on...

Pro Bono Australia: Social Enterprises Misunderstood - Financial Resilience Report
Author: Ellie Cooper

Mohammad Anas Wahaj | 24 aug 2015

Wikipedia defines 'Social Enterprise' as, 'An organization that applies commercial strategies to maximize improvements in human and environmental well-being - this may include maximizing social impact rather than profits for external shareholders. Social enterprises can be structured as a for-profit or non-profit, and may take the form (depending in which country the entity exists and the legal forms available) of a co-operative, mutual organization, a disregarded entity, a social business, a benefit corporation, a community interest company or a charity organization.' Like any other organization the success of 'Social Enterprises' depends on variety of internal and external factors like leadership, teamwork, passion, infrastructural ecosystem, investor capital etc. Dick Gygi, a veteran social ventures leader & co-founder of 3 social enterprises, shares his experience and outlines factors essential for social entrepreneurs to lead their enterprises to success - (1) Get clear on the mission and stay mission-centered. (2) Test the business model for sustainability before you bet the farm. (3) Don't do it alone. Build a strong team and do your best. Then, delegate the rest. (4) Persevere. It takes more time and money than you think. (5) Measure desired outcomes - financial and mission impact. Read on...

Nashville Business Journal: 5 lessons learned in 10 years of leading Nashville social enterprises
Author: Dick Gygi

Mohammad Anas Wahaj | 09 jun 2015

Diversity in nonprofit boards and leadership is an essential element of governance. It helps in bringing different perspectives and expertise in the decision-making process and affects the culture and dynamics of the nonprofit boards. Team of researchers led by Professor Garry W. Jenkins of The Ohio State University undertook the study to understand the ways in which the composition of the nonprofit boards has evolved in recent years in US. They examined the biographies of governing directors in 1989 and 2014 of three sets of nonprofit organizations: major private research universities, elite small liberal arts colleges, and prominent New York City cultural and health institutions. According to Prof. Jenkins, 'The most striking finding was the sizable presence and growth on charitable boards of those whose primary professional background and skill set were drawn from the financial services industry. The tally indicates that the percentage of people from finance on the boards virtually doubled at all three types of nonprofits between 1989 and 2014.' Another important takeaway from the study is the presence of high percentage of board leadership positions from the finance sector (Liberal Arts Colleges - 44%, New York City Nonprofits - 44%, Private Universities - 56%). Prof. Jenkins while mentioning the 2012 figures for finance sector contribution to GDP (7.9%) and employment (6% of private non-farm workforce) explains, 'If nonprofit boards were composed of a representative group of people from society, one would expect trustees with a finance background to represent roughly 6 to 8 percent of board members. Instead, according to our research, trustees with professional backgrounds and skills primarily from the financial services industry represent about four times that number.' While answering about this shift in composition of nonprofit boards, Prof. Jenkins says, 'Nonprofit organizations are simply following the money. Driven by the heightened pressure and expectations to raise ever larger sums, nonprofit boards and managers are selecting new board members with an eye toward those with the greatest capacity for making "transformative gifts."' The dominance of financiers in the nonprofit boards also influences the working dynamics of the board with inclusion of specific practices, approaches and priorities (Data-driven decision making; Emphasis on metrics; Prioritizing impact and competition; Managing with 3-5 years horizons and plans; Advocating executive-style leadership; Compensation etc). Although these practices do have benefits for nonprofits, but at the same time too much financial and business-like emphasis in the functioning of the board may have adverse impact on charitable goals and objectives. For the long-term success and effectiveness of the nonprofit boards the need would be to balance the composition of the board with inclusion of individuals that have expertise and skills in different fields alongwith consideration of racial and gender diversity, minority representation etc. Read on...

Stanford Social Innovation Review: The Wall Street Takeover of Nonprofit Boards
Author: Garry W. Jenkins

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