Nonprofit Quarterly Is Published by Nonprofit Information Networking Association, Jeanne Bell, Compasspoint Nonprofit Services 112 Water St., Ste
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Promoting Spirited Nonprofit Management Spring 2018 $19.95 Spring 2018 Dynamics and Domains: Networked Governance in Civic Space Dynamics and Governance Domains: Networked Dynamics and Domains: Networked Governance in Civic Space Volume 25, Issue 1 Volume Renz on the Boiling Up of Networked Governance Millesen and Martin on Fear, Tradition, and Serendipity as Drivers of Governance Cornforth, Hayes, and Vangen on Windows of Collaborative Opportunity helping you help others. DonorPerfect fundraising software • Branded online donation forms supports the goals of your nonprofit • Integrated gift processing organization through time-saving, • Constant Contact email marketing money-raising technology. • Top-rated fundraising mobile app • Automatic monthly giving Learn more at donorperfect.com. Volume 25, Issue 1 Spring 2018 4 Welcome 24 Windows of Collaborative Opportunity: Considerations 6 The Nonprofit Whisperer of Governance Is it ever a good idea for a prior CEO to rejoin How do nonprofit–public partnerships the organization as a member of the board? form, and how are they governed? This The Nonprofit Whisperer weighs in! article analyzes the life cycle of such collaborations, which can be challenged by complex power dynamics. Features by Chris Cornforth, John Paul Hayes, PAGE 8 and Siv Vangen 8 Networked Governance: Gaining New Insights into This Unique Approach to 30 Between Public and Private Action: Leadership Neighborhood Organizations and Here, David Renz looks back at his leading- Local Governance edge work on nonprofit boards and the Nonprofits are generally viewed as entities research that has emerged since then around that primarily respond to government or networked governance. market failure. But nonprofits are well- by David O. Renz situated to shape—rather than just respond to—the process of governance, and local 14 Fear, Tradition, and Serendipity: organizations are becoming more and The Unacknowledged Drivers of more central to promoting neighborhood Governance Strategy democracy. This article explores the role that fear, by Robert J. Chaskin and tradition, and serendipity play as unconscious PAGE 14 David Micah Greenberg factors influencing board choices and action, and how we might better combat the 42 Organizing First: A Case for a Hybrid negative effects of board decision making Version of Stakeholder Engagement that tend to result in maintaining a This article presents a case study less-than-useful status quo. demonstrating a successful hybrid model by Judith L. Millesen and Eric C. Martin of stakeholder engagement in action. by Alan Smith PAGE 24 COVER DESIGN BY CANFIELD DESIGN COVER ART: “INTERCONNECTING WORLDS #1” BY ROSLYN RAMSAY/WWW.ROSLYNRAMSAY.COM Departments 56 “Click to Donate”: Which States Have Jurisdiction 50 You First: Leadership for a New World over My Online Fundraising? In this column, Mark Light explores the notion Here, the author describes the regulatory of servant leadership, and asks, “What does it framework for online charitable fundraising, mean to serve first?” and outlines a systematic approach that by Mark Light, MBA, PhD organizations can follow to evaluate their compliance obligations on an ongoing basis. 52 Life in the Fishbowl: Culture, Cognition, PAGE 30 by Karen I. Wu and Communication This article, by the FrameWorks Institute’s 61 Are You a Dipper? Nonprofits, Sin, CEO Nat Kendall-Taylor, looks at how a well- and Shadow Loans grounded understanding of culture is essential This article looks at the perilous practice of to driving social change. “dipping” into restricted funding streams— by Nat Kendall-Taylor something that most nonprofits have had to do at one time or another in order to make good on their financial obligations. by John MacIntosh PAGE 42 NONPROFIT INFORMATION NETWORKING ASSOCIATION Joel Toner, Executive Publisher Ruth McCambridge, Editor in Chief www.npqmag.org NONPROFIT INFORMATION NETWORKING ASSOCIATION BOARD OF DIRECTORS Ivye Allen, Foundation for the Mid South Charles Bell, Consumers Union The Nonprofit Quarterly is published by Nonprofit Information Networking Association, Jeanne Bell, CompassPoint Nonprofit Services 112 Water St., Ste. 400, Boston, MA 02109; 617-227-4624. Jim East, George Kaiser Family Foundation Copy right © 2018. No part of this publication may be reprinted without permission. Chao Guo, University of Pennsylvania ISSN 1934-6050 Anasuya Sengupta, Activist/Strategist/Facilitator Richard Shaw, Youth Villages 2 THE NONPROFIT QUARTERLY WWW.NPQMAG.ORG • SPRING 2018 Our planned facilities and renovations are designed to support students who will play a leadership role in a fast-paced and everchanging world; a leadership role that will require an approach to problem solving that is as analytical and well-informed as it is innovative. Thomas M. Kelly, Ph.D “ Head of School, Horace Mann School ” CCS CELEBRATES HORACE MANN SCHOOL’S HM IN MOTION CAPITAL CAMPAIGN As a leader in primary and secondary school education, Horace Mann School is investing in the future of their students. HM in Motion is a $100 million effort aimed at inspiring science, encouraging community, promoting wellness, and strengthening athletics. CCS is proud to serve as counsel for this important and historic effort for Horace Mann School. WE PARTNER WITH NONPROFITS FOR TRANSFORMATIONAL CHANGE [email protected] | ccsfundraising.com Welcome EXECUTIVE PUBLISHER Joel Toner EAR READERS, EDITOR IN CHIEF Ruth McCambridge One of the most rapidly advanc- SENIOR MANAGING EDITOR ing topics in the sector right now Cassandra Heliczer centers on the shape and function of SENIOR EDITORS Dnonprofit governance. If you do not already Steve Dubb, Cyndi Suarez know that, you need to take a moment to con- CONTRIBUTING EDITORS Fredrik O. Andersson, Shena Ashley, Jeanne Bell, sider some of the more recent thinking on Chao Guo, Brent Never, Jon Pratt the subject. SENIOR ONLINE EDITOR COMMUNITY BUILDER The fact is, nonprofit governance has in the Jason Schneiderman Erin Rubin last fifteen years or so broken free of some DIRECTOR OF DIGITAL STRATEGIES preconceived assumptions that kept produc- Aine Creedon ing and reproducing the same problems— GRAPHIC DESIGN PRODUCTION as systems tend to do unless you disrupt them. Kate Canfield Nita Cote Bill Ryan, nonprofit consultant and lecturer at the Kennedy School of Govern- MARKETING AND DEVELOPMENT MANAGER Amanda Nelson ment, referenced this dynamic in the 2003 Nonprofit Quarterly article “Problem OPERATIONS MANAGER Boards or Board Problem?,” where he and coauthors Richard Chait and Barbara Scarlet Kim Taylor noted that underperforming boards had apparently become more the norm COPY EDITORS PROOFREADERS than the exception, despite a boatload of consulting and normative literature from Christine Clark, James Carroll, which consultants were taking their cues. They then detailed a thicket of prescrip- Dorian Hastings Dorian Hastings tions, including the clarification of roles and responsibilities and the stricter mainte- EDITORIAL ADVISORY BOARD nance of the boundary between policy and management questions, and concluded: Elizabeth Castillo, University of San Diego Rather than narrowing our sense of the board’s work, we should try to broaden Eileen Cunniffe, Arts & Business Council of Greater it. In fact, in developing managers or leaders, we do precisely this. We urge Philadelphia Lynn Eakin, Ontario Nonprofit Network them to look beyond their narrow, official job descriptions to the more subtle, Anne Eigeman, Anne Eigeman Consulting important, and personally satisfying aspects of their jobs. We might try the Robert Frady same for boards, asking how we can make board work more meaningful for Chao Guo, University of Pennsylvania board members and more consequential for their organizations. For those Rahsaan Harris, Emerging Practitioners in Philanthropy who want answers now, this may entail entirely too much thrashing about Paul Hogan, John R. Oishei Foundation the problem. But a new sense of the problem of purpose may be more useful Mia Joiner-Moore, NeighborWorks America Hildie Lipson, Maine Center for Public Interest than still more solutions to the problem of performance. The right solution Lindsay Louie, Hewlett Foundation to the wrong problem rarely works. Robert Meiksins, Forward Steps Consulting LLC Jon Pratt, Minnesota Council of Nonprofits In other words, maybe we had the problem framed all wrong, and thus the Jamie Smith, Young Nonprofit Professionals Network solutions to that problem were far less than effective. Ryan, it turns out, was not Michael Wyland, Sumption & Wyland only disrupting the comfortable assumptions of those who made their living off diagnosing and fixing board dysfunction but was also laying the groundwork for a ADVERTISING SALES much richer understanding of the potential and limits of the nonprofit governance 617-227-4624, [email protected] functions. He eventually began to refer to the somewhat haughty dysfunction-fixing SUBSCRIPTIONS: Order by telephone (617-227-4624, ext. 1), dynamic as the “nonprofit governance industrial complex.” fax (617-227-5270), e-mail ([email protected]), or online (www.nonprofitquarterly.org). A one-year A few years later, David Renz, director of the Midwest Center for Nonprofit subscription (4 issues) is $59. A single issue is $19.95. Leadership, took that thought to its next level by proposing that we had our terms of reference all wrong. In his landmark Nonprofit Quarterly article “Reframing 4 THE NONPROFIT QUARTERLY WWW.NPQMAG.ORG • SPRING 2018 Governance,” he advanced