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Just read this: if you sit on a nonprofit board don't think you're going anywhere soon, not until after you listen to Dan Pallotta describe Uncharitable, his riveting indictment of how we hobble nonprofits. It's a myth-busting, paradigm-shifting re-examination of what's going on in Charity, in my case, right under my nose. I'd noticed the review in the New York Times awhile ago, so I picked up a copy then it sat in a pile. But since I sit on 4 nonprofit boards, the sub-title nagged: "How Restraints on Nonprofits Undermine Their Potential"; I took it on 2 long distance trips, a week each in Atlanta then Madrid. What a great companion this manifesto turned out to be.
Like many of my angel investor peers, in addition to sitting on for-profit boards of private companies, many of us end up on nonprofits, too.
For myself, I'd learned quite a bit from fellow angels, especially Tech Coast Angels' Dave Berkus, and I'd enjoyed putting some new concepts on the table and into play for 2 nonprofit boards in the past year. I was enjoying the process: making an organizational change and seeing a pretty immediate positive result, then I did it again for the local school of the arts advisory board I sit on and again, an almost immediate positive change; this was fun, tweeking nonprofit boards was not only possible, but the feedback cycle could be immediate. Like learning to drive, I thought, maybe I can accelerate the cycle. So that makes me and maybe you, too, the perfect audience for Uncharitable author, Dan Pallotta. I need to create a new sub-category on this blog, "myth buster", then Dan could be cross referenced with the likes of Fools Gold author Scott Shane and Early Exits author Basil Peters. On the 10 hour flight home from Madrid last month I lent my copy to Angel Capital Association Chairman, John Huston. Half way over the Atlantic he hands it back, "this makes my head hurt; I'm getting my own copy!". When I tell Dan, like the interviewer I'm supposed to be, he asks, "what do you think he meant by that?". I was pretty sure I knew and you'll be able to guess once you listen to Dan Pallotta.
Frank,
As you know I sit on four boards, two of them large - controlling budgets exceeding $80-$100MM each. Dan's interview was excellent, aimed at the center of where most non-profit board are situated - concerned about the appearance of high cost of raising funds, worried about pay for its executives, and not reaching for the big goals in fundraising for fear of failure. Dan makes a good case in advocating skilled management even at higher cost, focusing more upon the financial returns than the percentage of cost to obtain the returns, and treating the operation of a non-profit as if it is a profit-making enterprise. There are so many differences between the two, but great management with strong vision certainly is not one of those differences. Thanks for a fine interview of an outstanding contributor. - Dave Berkus