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Stuff To Ponder: Transparent Community Driven Grant Processes

May 2, 2011

by:

Joe Patti

The Hawaii Community Foundation just recently completed the first round of granting for their Island Innovation Fund. I was really very impressed by the way they went about their very transparent granting process. Instead of having a grant disappear into the bowels of the foundation offices, they got the community involved in the process of providing feedback and guidance at every step.

The blog for the local technology radio show, Bytemarks Cafe, did a good job last October of summarizing the approach they took.

On my preview, the proposal review was a 4 step process. The first step in the process is the Concept, where you submit your idea and any associated material, be it photos, video, documents or presentations. There is an open period for submittals and a deadline to meet.

Next the process enters into the Collaboration phase where proposal material is made public (public as in registered users of the site). The public has about 30 days to comment or ask questions. Applicants are able to respond to comments and make improvements to their Concept.

During the third phase, HCF personnel will review the revised Concept. Projects that best demonstrate the principles and goals of the Island Innovation Fund will be ask to submit a Proposal.

Finally in phase 4 the Omidyar Network and Hawaii Community Foundation staff will review and evaluate Proposals. The most compelling proposals get invited to present a 15 minute presentation to an independent panel of judges for final selection. This judging is open to the public. Winning proposals will be announced one week after the final presentations.

I listen to the radio show pretty regularly, but I must have missed the show where they originally discussed this because I would have definitely participated in the feedback portion of the concept phase. I think that is the best part of the entire program. Not only does it allow applicants to understand what the community needs are and adjust their application accordingly, but it also provides the Hawaii Community Foundation (HCF) with a better understanding of what the community needs from them.

It is something of a win-win for everyone. Even if the applicants aren’t proposing something that fits into the HCF or fund goals, they get valuable feedback about their concept should they wish to pursue it with another granting organization. Those who are invited to proceed, but don’t get funded also receive important feedback and I believe some will be allowed to reapply for the next round. Being able to walk away knowing how to make your proposal better and speak about it effectively is valuable in itself because you often don’t get any feedback in that vein from granting organizations.

In understanding what the community needs, HCF can begin to think about their own approaches and priorities, including assumptions about community needs they may have made. Perhaps some of the proposals didn’t adequately address how the specific submitter would effectively approach a need in the community. The need still remains and now HCF may be able to bring resources to bear having read the feedback on the community forums suggesting what considerations need to be made in effecting a solution.

I should also note that even the final presentations to the independent panel was conducted very publicly and was streamed live over the internet. The video may still be viewed on the Island Innovation Fund website.

Now in a bit of serendipity, Diane Ragsdale addressed the pursuit and funding of innovation in the arts on her blog today. She mentions that receiving funding for innovative work can actually destabilize an organization as they try to meet the heightened expectations that such recognition brings.

But she also notes that often the most innovative work is passed over in favor of more tame versions because real innovation risks failure by necessity:

“Finally, it’s perplexing and annoying to others in the arts sector when funders give ‘innovation grants’ to projects and organziations that are not, actually, innovative–particularly when one knows the projects that did NOT get funding. I’m not sure how this happens but I suspect it is in large part because ideas that are truly surprising, that may even defy written rules and conventions, are unlikely to make it all the way through the grantmaking process at most risk-averse foundations (in no small part because they make lawyers nervous).”

I am not going to claim that those awarding money from the Island Innovation Fund, even given their intriguing granting process, are any less risk averse than any other foundation out there. However, I would think that efforts toward innovation in the arts would benefit from a granting process like the one they conducted. The one benefit I hadn’t mentioned yet about this program is that even if one isn’t an applicant for the grant, just participating in the question and commenting phase can help a person refine their own nascent ideas and understand how better to execute them.

Arts in an Age of Technology, Fundraising, Info You Can Use, New Initiatives, State of the Arts

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Mutant Business Models Are Coming! (Embrace Them Before They Embrace You)

April 27, 2011

by:

Joe Patti

Apropos to yesterday’s post about non-profit business models is a piece by Saul Kaplan on the Harvard Business Review discussing how every organization that offers some sort of service needs a business model regardless of whether you are a non-profit, NGO, government entity or for profit business.

If you have never thought about your organization’s business model but figure it is about time you did, you may found Kaplan’s comments about the mutability of business models a little disheartening.

“If you ask any ten people in your organization how it creates, delivers, and captures, will the answers even be close?

If not, it’s probably because, in the industrial era when business models seldom changed and everyone played the game by the same set of well-understood industry and sector rules, it wasn’t as important to be explicit about business models. Business models were safely assumed and taken for granted.

That won’t work in the 21st century when all bets are off. Business models don’t last as long as they used to. New players are rapidly emerging, enabled by disruptive technology, refusing to play by industrial era rules. Business model innovators aren’t constrained by existing business models. Business model innovation is becoming the new strategic imperative for all organization leaders.”

He goes on to talk about the need for new, hybrid business models that blur the existing lines. I take some comfort in the fact that business models are currently a hot topic of discussion among various arts administration blogs. It means we are staying current with trends rather than following far behind.

One thing in particular I took away from Kaplan’s post was the importance of keeping involved in the conversation about business models given that existing lines of separation between profit and non profit are likely to become less distinct.

“Perhaps the most important reason for developing common business model language across public, private, non-profit, and for-profit sectors is that transforming our important social systems (including education, health care, energy, and entrepreneurship) will require networked business models that cut across sectors. We need new hybrid models that don’t fit cleanly into today’s convenient sector buckets. We already see for-profit social enterprises, non-profits with for-profit divisions, and for-profit companies with social missions. Traditional sector lines are blurring. We’re going to see every imaginable permutation and will have to get comfortable with more experimentation and ambiguity.”

Business Models, Leadership, State of the Arts

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Wait, What Is This Guy Actually Talking About?

April 26, 2011

by:

Joe Patti

In the morning when I look at all the Twitter streams I follow, I often click interesting looking links and then come back to the web pages when I am done with all the new tweets. The result is often a long series of tabs on the Firefox browser and often I don’t quite know who suggested what story when I get around to reading it.

Since most of those I follow have an association with arts and culture, you might understand why I initially thought the blog post I was reading was on that subject. It wasn’t until I got to the sixth point that I had any inkling it was on another industry altogether and the eleventh before I was sure.

RULES FOR BUSINESS MODELS

* Tradition is not a business model. The past is no longer a reliable guide to future success.

* “Should” is not a business model. You can say that people “should” pay for your product but they will only if they find value in it.

* “I want to” is not a business model. My entrepreneurial students often start with what they want to do. I tell them, no one — except possibly their mothers — gives a damn what they *want* to do.

* Virtue is not a business model. Just because you do good does not mean you deserve to be paid for it.

* Business models are not made of entitlements and emotions. They are made of hard economics. Money has no heart.

* Begging is not a business model. It’s lazy to think that foundations and contributions can solve news’ problems. There isn’t enough money there. (Foundation friend to provide figures here.)

* There is no free lunch. Government money comes with strings.

* No one cares what you spent. Arguing that news costs a lot is irrelevant to the market.

* The only thing that matters to the market is value. What is your service worth to the public?

* Value is determined by need. What problem do you solve?

These sentiments are actually about news delivery and found on Jeff Jarvis’ BuzzMachine blog. For awhile there I thought an arts blogger was replicating Adam Thurman’s posting style on Mission Paradox. I had to go back to my Twitter account to try to figure out where the heck I got this link, finally discovering it was the Artful Manager, Andrew Taylor.

Honestly now, if I hadn’t alluded to the fact it wasn’t about non-profit arts and cultural organizations, would you have known it wasn’t? Every point made is a topic of conversation that has come up regarding the arts. Hopefully, they are conversations you have had at least with yourself, if not the staff and board of your organization.

The fact that news organizations are facing these same questions is of some comfort–at least we know the arts are not alone in the challenges being faced.

At the same time, the fact these questions can be asked of the news industry only serves to confirm their wider relevance. These are questions any business must ask. The arts are not special in this regard.

As much as I feel my practical side provides a good balance to my idealism, it is tough to think about the arts not being the exception. Every time I scroll up to re-read these points and see “Virtue is not a business model,” and “Business models are not made of entitlements and emotions,” there is a part of me that says, “Yes, but the arts are different.” In many respects this is true, but the arts in the U.S. operate in an environment where what is written above is also true to a great degree and must be acknowledged.

Rather than try to talk all of us out of our belief in the sublime experience the arts can bring to every day existence, I will merely stress the need to be mindful of the aforementioned truths and not allow our aforementioned belief in the power of the arts to dismiss the stark reality they represent.

Business Models, General Musings, Management Philosophy, State of the Arts

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I’m Not Standing Here Acting For My Health, It’s For Your’s

April 25, 2011

by:

Joe Patti

I always keep an eye open for stories about people using arts in health care in some fashion. Mentions of organized programs seem to be pretty rare though…or perhaps I am not looking hard enough.

I almost skimmed by it, but thanks to a job listing for a managing director I became aware of the NiteStar program at St. Luke’s Roosevelt Hospital Center in Manhattan. The program has been around for nearly 25 years with a mission of using “the performing arts and peer education to help young people make informed decisions, providing options for changing attitudes and prejudices, and creating opportunities for promoting healthy behaviors.”

Their programs address issues of “sex and sexuality, domestic and teen violence, substance abuse, and multiple health threats, including teenage pregnancy, HIV/AIDS and sexually transmitted diseases.” A 1996 PBS documentary, Sex and Other Matters of Life and Death, chronicled their efforts over the course of a year.

While it might not be the subject matter everyone would want to tackle, I wanted to note their efforts because their basic experience developing and delivering programs in diverse venues in conjunction with health services could help those with similar ambitions avoid reinventing the wheel.

Art(ist) Education, Audience Relations

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