At last year’s SVP Conference in Portland, SVP Partners were treated to a very informative and inspiring plenary session with Dan Pallotta, author of Uncharitable and Charity Case. Pallotta, who pioneered the multi-day charity event (think Breast Cancer 3-day Walks or AIDS Rides), contends that the way most people think about philanthropic giving is wrong.
At the SVP Conference and in his recent TED Talk, Pallotta challenges the idea of “equating frugality with morality” and says that rather than demanding unreasonably low overhead, we should reward nonprofit leaders and organizations for their accomplishments and help them find ways to grow, expand, and improve on successful programs. And yes, that includes spending money on advertising.
As an advocate for the nonprofit sector, Pallotta has spearheaded the creation of the Charity Defense Council. The Charity Defense Council seeks to be a voice for the nonprofit sector and act as an anti-defamation league. They have defined their five primary functions and are working to find ways to honor the work of accomplished nonprofit professionals and to show the true importance of the sector in the fabric of the American economy.
SVPI board member and SVP Cincinnati Partner, Tom Callinan is aiding in this effort to change minds through his position as the chair of the Charity Defense Council’s anti-defamation committee. In a recent article on Cincinnati.com, Tom points out that “There are 1.2 million nonprofits in the U.S. – and ‘yet the biggest of the watchdog agencies only looks at 7,000 charities.’ All they do is share tax information with you and maybe tell you a little about whether the charity has an adequate board of directors. None of the watchdogs – not Charity Navigator, not the Better Business Bureau, not Charity Watch – does any real research on the effectiveness of a charity’s programs.
But the overhead obsession dominates the public’s view of charities. ‘The public wants every gala dinner and walkathon to send 100 percent of its money back to the cause,’ Pallotta says. ‘But what people don’t realize is that low overhead is not a path to ending world hunger or curing cancer.’”
In his article, Tom Callinan reflects on his direct experience with some of the barriers that nonprofits encounter as he works to get a new nonprofit off the ground. New nonprofits face many of the same challenges as startup business, but rarely have the same opportunities to gain contacts, seek talent, or spread the word about their work. As we think about the level of success we would like to see nonprofits reach, we must also consider how the way we give can help organizations to build out their work and find a ways to have a greater impact on the community.
SVP Partners who attended the network conference last year were very fortunate to hear Dan Pallotta give this rousing talk. If you’d also like to get in on the great opportunities that the power of the network creates, save the date for the 2013 SVP Conference: October 17-19 in Palo Alto.