Growing What Works, Part 1
Everywhere I go in the nonprofit/philanthropic world these days, I hear two words: “Scale” and “Innovation.” (Everywhere else you hear “Swine Flu” and “Economy,” but those are much different topics!) Both of these concepts have been around for quite some time, but the convergence of a new administration, a constricted private funding basis, and a rising and raging need on all fronts in communities have made finding “solutions that work” and growing them quickly sound a little like a silver bullet.
For the last nine years, VPP has been practicing its own version of scaling innovation here in the National Capital Region. We have invested large amounts of what we call “growth capital,” combined those funds with hands-on strategic management assistance from our team, and developed valued relationships with our nonprofit partners and others. That model has helped our 12 nonprofit investment partners grow to serve 10,029 children and youth at a cost of $2,312 of direct investment per additional child/youth served. Overall, Portfolio I organizations are stronger and more stable, with more engaged boards, stronger leadership teams, systems of performance measurement, increased fiscal accountability, and improved programs. And we have learned much along the way.
In Portfolio II, we will build upon our first body of work and implement what we’ve learned. But we also believe those lessons have implications for others engaged in the work of scale and those who are new to the effort. So we share the following in the spirit of contributing to an ongoing dialogue.
- More Time, More Money: Growing to scale and strengthening organizational capacity in a meaningful and long-lasting way requires even more capital and time than we imagined. In the second portfolio, we will be making fewer (probably five to eight) investments and most likely committing higher amounts to each investment. Our current investor commitments to VPP and Portfolio II go through 2014, which does not give us as long of a time horizon as we would like. We are working towards an “evergreen” model of capitalization for our own organization so we can extend investment engagements beyond the second portfolio.
- Performance-Based Investing Means Walking Away: If our philanthropic investments are truly to be accountable and based on an organization achieving the milestones we mutually agree upon, VPP and its investment partners must have clear points of disengagement. And that disengagement must be handled in such a way that it does no harm to either organization. Expectations must be clear and we are spending significant time in the selection process to make sure all parties, including a prospective organization’s board leadership, are clear about VPP’s approach and process. While we remain flexible in assessing the achievement of milestones, we will also focus milestones more tightly on the most critical objectives for an organization to achieve within a specific time period. This focus will ensure clarity about whether or not milestones and performance expectations have been met.
- Scale is More than Numbers: While we still believe reaching more children and youth in our community with proven and effective programs is critical, we have also learned that scale, for us, can be achieved in other ways as well. Increasing outcomes—deepening, expanding, and/or improving programs—is an important part of scaling impact in our community. We have also found that some programs have great potential to disrupt a system, provide a new model for program delivery, and could be replicated by others, that while they themselves may not grow much more in numbers, scale could be achieved indirectly. A VPP investment usually has some combination of these approaches to scale.
- Organizational Readiness and Ability for Absorption: For an organization to truly transform—changing its performance culture, beefing up its infrastructure, and entering a rapid growth phase to scale impact—all the stars must be aligned. We have found that, like with so many things, timing is everything. While we can’t control external factors, we assess whether or not a potential investment is ready for growth and how much ability it has to absorb the injection of capital, extensive business planning, and strategic assistance that VPP provides.
- Regional Scaling is Complex, but Critical for Social Change: Some of our most significant, interesting, and, at times, most surprising lessons have been around what it takes to grow organizations within a region, particularly a multi-jurisdictional area like the National Capital Region. When VPP was created almost ten years ago, the founders made it a regional organization by design. As businessmen, they knew the economic issues we faced were spread across the District and the close-in suburbs in Maryland and Virginia. Community leaders, like Bob Templin, who is now president of Northern Virginia Community College and a VPP strategic advisor, reinforced how the children and youth in need were spread out in multiple jurisdictions. But then we did not know all the implications of working regionally or the specificity around the changing demographics and gaps in service in this region.
We have learned there is much power and potential in a regional focus and some inherent challenges. Investments are limited as there is only a small number that may fit our criteria. At the same time, the potential for collaboration and deep penetration into communities is great. Regional scale requires a thorough understanding of community issues including race, class, culture, and local politics. It is essential to have that expertise and sensitivity in your investment team. Growing in a multi-jurisdictional area often necessitates new partnerships with business, government, or other nonprofit service providers. Organizations looking to expand must understand how to function in multiple jurisdictions and make critical decisions about their operations and capacity in order to handle new sites. And nonprofit leaders, assisted by our own investment team, must be able to navigate the formal and informal systems that truly govern getting things done and breaking down barriers to growth and establishment of new sites.
At VPP, we’re a big believer in “growing what works;” our model is built on the concept. But our experience with our first portfolio has shown us that it’s complex work, often requiring a complete culture shift in an organization. Whether you’re helping a community-based organization grow beyond the confines of its homebase or assisting a national organization to get more than just a foothold in a new city and region, the work of spreading social innovation is messy and humbling. But it is precisely what is needed in order to move beyond incremental change and stimulate the long-term, systemic change necessary to advance a generation of children and youth.
- Carol Thompson Cole
Editor’s Note - For the last two years, VPP has been in a transition phase: completing work with its first portfolio, raising capital for a second portfolio, landscaping for potential Portfolio II investments, and reflecting on lessons learned to refine and improve its approach and execution. The transition period has ended; the next stage of work begins.
Follow VPP on Twitter
Ashton Kutcher has a million followers and recently donated 10,000 mosquito bed nets to charity for World Malaria Day when he hit that milestone during a friendly wager with CNN. Not sure exactly what that means?
Enter the world of Twitter, a service that allows a subscriber to post short updates of no more than 140 characters. Tweets (status updates), retweets (RT which acts like a forward), hashtags (# followed by a name that can be used to broadcast to a specific group of people).and twibes (groups of subscribers around a common purpose) seem to have entered mainstream conversation.
Venture Philanthropy Partners experienced a small example of how Twitter can get a message out in a flash. Last month’s Chairman’s Corner, “The Innovation Imperative,” was re-posted on the Stanford Social Innovation Review Blog and then picked up by some Twitter feeds. Rough estimates of tweets and retweets indicate that a combined total of approximately 24,000 followers had access to the column in a 48- to 72-hour time span.
So, following the lead of a number of VPP stakeholders, VPP is now on Twitter. Follow along @vppartners for interesting links and up-to-the-minute news updates.
Blake Mycoskie of TOMS Shoes Inspires at First VPP Investor Family Event
“Don’t wait until you are old enough to write a check. Use your network and friends to create change. You can start making a difference at any age,” urged Blake Mycoskie, founder of TOMS shoes at the inaugural VPP Investor Family event. More than 50 attendees came together on May 3 to learn more about VPP’s investment partners, exchange ideas about engaging children in giving back, and hear from Mycoskie, social entrepreneur and Chief Shoe Giver.
The Boys & Girls Clubs of Greater Washington, Mary’s Center, and the Latin American Youth Center provided hands-on activities illustrating their efforts in health, nutrition, community service, the arts, and empowerment for young people. VPP investor families shared stories about how their children have gotten involved in philanthropy including raising money to vaccinate a village in the Amazon and helping individuals stricken with HIV and AIDS in South Africa.
Carol Thompson Cole welcomes Blake Mycoskie, Jean-Marie and Raul Fernandez and their daughter to the VPP Investor Family event.
“One of the things that drew us to VPP was its ability to help my wife and me instill our philanthropic values and the joy of giving in our children,” said Cliff White, VPP Investor and member of the Family Event Host and Planning Committees.
During the program, Mycoskie told a captivated audience how he started what he calls a “movement” that uses “the purchasing power of individuals to benefit the greater good.” The premise—buy one, give one—came to him after he befriended children in Argentina who had no shoes, a deprivation for poor children around the world which causes discomfort, disease, and often prevents them from attending school.
“After I made my first shoe drop, I realized I would never use my entrepreneurial gifts for just making money again…I believe the future of business is when business and philanthropy come together,” he said.
Mycoskie will shift his model in the next year from giving shoes away via “shoe drops” in many locations to going deep in one place (the southern Ethiopian region of Wolaita) to solve a problem (the debilitating disease of podoconiosis) and then scale that solution.
“The chance for families to come together, share ideas about involving their children in philanthropy, meet some of our Investment Partners, and hear from an incredible social entrepreneur like Blake is a unique opportunity the VPP Family Event provides. The next generation is our philanthropic heart and mind, and it is so important they realize they already have in themselves the power to make a difference,” said Gabriela Smith, VPP Investor and chair of the Family Event Host and Planning Committees.
 BGCGW Implements New Program Standards
Thanks to Molly Boyle, Vice President for Communications,, for this update.
Boys & Girls Clubs of Greater Washington (BGCGW) has announced the implementation of new program standards. The new standards focus on outcome measurement for each of the organization’s five core program areas: Education & Career Development; Character & Leadership Development; Health & Life Skills; the Arts; and Sports, Fitness & Recreation. In conjunction with a recent organizational re-structuring, by 2010, BGCGW will be able to deliver higher quality programming to more youth with a more efficient operating budget.
In coordination with VPP, BGCGW reviewed the number of programs offered at all Clubs, outlined a 30-day program vetting process, and provided Club staff with a data-gathering tool aimed at determining program efficacy. The result is a more focused offering of approximately 40 high-quality programs, down from over 100. All programs meet key objectives, have clearly stated and measurable outcomes, and have been tested by either Boys & Girls Clubs of America or in the DC region by BGCGW and partners such as GlaxoSmithKline and Freddie Mac.
Tamika Joyner, Teen Director, FBR Branch@THEARC, BGCGW; Tory Myles, BGCGW Club Member & Money Matters Ambassador; Carrie Schwab-Pomerantz, President of the Charles Schwab Foundation; and Leah Lamb, Chief Development Officer for the Boys & Girls Clubs of Greater Washington gather for the presentation of the $5,000 award.
Program impact can clearly be seen through the achievements of Club member Tory Myles. Myles, a senior at McKinley Technical High School, is a four–year member of the FBR Branch @ THEARC and was recently named as Boys & Girls Clubs of America’s Money Matters Ambassador. Money Matters is a national financial education program, funded by the Charles Schwab Foundation, teaching pre-teen and teen Club members to make smart financial decisions. Through this program, Miles has changed her spending habits and has opened and is maintaining checking and savings accounts.
Between preparing for her high school graduation this year and two part-time jobs—one as a legal intern and the other as a Boys & Girls Club Junior Staff member, she also serves as the Club’s Keystone President and volunteers in her community, simply one example of how BGCGW programs positively impact the lives of our youth.
 Pre-K Students Participate in White House Easter Egg Roll
Thanks to Brenna Casey, Communications Manager, for this update.
Students from Pre-K classrooms at CentroNía and DC Bilingual Public Charter School attended the White House Easter Egg Roll on Monday, April 13. Fifty students accompanied by teachers, parents, and other CentroNía staff took part in numerous activities, including the traditional Easter Egg Roll, yoga classes, story time circles, and visits with characters from popular television programming, like Dora the Explorer.
CentroNía students, parents, and staff gather in front of the White House during the annual Easter Egg Roll.
Kenneth Carter, a Pre-K student who participated in the Easter Egg Roll, said the event was cool. "The music was fun, and I knew all the songs!" he said.
"The day was a lovely one for the children, their teachers, and their families," said Renata Claros, CentroNía's Project Manager for Early Childhood. "It was amazing to see the interaction of our students with other parents and families, and their delight at the many activities and sights on the White House lawn."
"We were honored to be included," Wanda Perez, Director of DC Bilingual Public Charter School, said. "It was a wonderful learning experience, especially for our Pre-K Students to be part of a historic day at the White House."
AALEAD Promotes Student Leadership
Thanks to Rick Chen, Manager of Development & Communication, for this update.
As part of AALEAD’s mission of promoting the well-being of low-income Asian American youth, the organization not only provides academic enrichment activities, such as tutoring, but opportunities to improve their social development, as both skills are critical to a student’s success.
Recently, AALEAD participated in a hearing determining the existence and budget of the Mayor’s Office on Asian and Pacific Islander Affairs (OAPIA), an independent agency whose mission is to ensure that the full range of health, education, employment, social services and business information, programs, and services are accessible to the District’s Asian and Pacific Islander community. AALEAD voiced its support for the agency through staff and student testimonies. One student who had benefited from AALEAD’s Mentoring Program, which is specifically funded by OAPIA, volunteered to testify on his positive experiences and the importance of OAPIA’s support.
After the student’s presentation, Councilmember Yvette Alexander (Ward 7) engaged in a brief question and answer session with the student, who confidently and honestly responded. The Councilmember showed genuine interest in the student’s concerns and thanked him for his testimony. Afterwards, the student excitedly shared his feelings during the testimony to staff and family members, clear indications of his increased confidence and self-esteem.
 First Lady Michelle Obama Attends "Cinco de Mayo" Celebration
Thanks to Lori Kaplan, Executive Director, for this update.
The Latin American Youth Center (LAYC) hosted First Lady Michelle Obama at the Latin American Montessori Bilingual (LAMB) Public Charter School for a “Cinco de Mayo” celebration. During the celebration, students from the Next Step Public Charter School, and LAMB performed several dances and a song entitled, “Somos los Niños de LAMB.”
First Lady Michelle Obama greets stakeholders from the LAYC family of organizations, including Executive Director Lori Kaplan and Board Member/VPP Investor Julie Jensen (photo by Rodney Choice/www.choicephotography.com).
“It was a tremendous honor and pleasure to welcome the First Lady & First Mom, Michelle Obama to the LAYC, the Next Step PCS and LAMB. She embraces and stands for all that we value and hope for all our multicultural children, youth, and families,” Lori Kaplan, Executive Director of the LAYC, said.
During her visit, the First Lady addressed a large group of students, LAYC AmeriCorps members, and staff from the LAYC, LAMB, and the Next Step. She remarked, “I encourage all of you to consider getting involved in public service and give back to your communities. You are our future, from the 3-year-olds to the 23-year-olds, and we are counting on you to work hard at school so you that you may become our next generation of leaders, and maybe standing up here where I am one day.”
 Mary’s Center Plans New Building
Thanks to Lyda Vanegas, Communications and Advocacy Officer, for this update.
Mary’s Center for Maternal and Child Care has announced plans to launch construction of a new building in Ward 4 to meet the needs of medically-underserved residents in that area. The new building, expected to be completed by the fall of 2010, is located at 3910 Georgia Avenue, NW. It will replace the existing site that Mary’s Center currently leases in Ward 4.
On May 4, District of Columbia Mayor Adrian Fenty attended the demolition of the old structure on Georgia Avenue. The Mayor praised Mary’s Center for its work and said the new building will help the health center expand its vitally important mission of providing neighborhood health care.
Left to right: Sharon Baskerville, DCPCA;
Maria Gomez, Mary's Center; Muriel
Bowser, DC Councilmember Ward 4; Adrian
Fenty, DC Mayor; and Jair Lynch, Jair
Lynch Development Partners, break ground
on new center site (photo by Lyda Vanegas).
“I am pleased to announce that Mary’s Center will have a new home in this neighborhood to continue doing their fantastic work in meeting critical needs such as HIV testing, teen pregnancy issues, and health care needs,” he said.
The 28,000 square-foot site will be part of an affordable housing project that includes 130 apartments for low-income families. Mary’s Center will occupy the first floor of the new building.
“We are very excited about this new building,” said Maria Gomez, President and CEO of Mary’s Center. “It will give us more efficient space in order to serve patients and it will enable us to expand our dental care services and to increase our primary health care capacity to this medically-underserved area.”
A $7.5 million grant from the DC Primary Care Association (DCPCA) will provide Mary’s Center with the initial funding to start construction. The total cost of the project is estimated at $15 to $16 million. The development is a joint venture between Affordable Housing Developments and Jair Lynch Development Partners.
 See Forever Celebrates Maya Way
Thanks to Ingrid Padgett, Director of Development, for this update.
When Dr. Maya Angelou is asked how to support her efforts, she often responds, “Support my school!” On April 30, 2009, individuals in the Greater Washington Region were able to do so by joining her on a visit to the Oak Hill Youth Center in Laurel, MD, or participating in See Forever’s annual fundraiser, “Celebrating Heroes and Sheroes,” that evening.
Dr. Angelou, in town as she is each year for the SFF spring fundraiser supporting the Maya Angelou Public Charter School (MAPCS), told Oak Hill scholars that she was not all that different from them. “Life isn’t about taking back,” she said, “but adding to what already exists.” Oak Hill scholars beamed as the renowned poet, author, and civil rights activist recognized each student. Fox News and the Washington Post covered the visit to Oak Hill Academy which included conversation with the students.
Dr. Maya Angelou offers
"mother wit" to Oak Hill
Scholars (photo by Louis Myrie).
At the evening fundraiser, Dr. Angelou expressed a similar message to a crowd of 1,200+ at the Historic Lincoln Theatre. The event celebrated what the MAPCS school community refers to as the Maya Way: All students—those adjudicated delinquent or those who have been unsuccessful in traditional school settings for a myriad of reasons—need support in viewing the world as full of opportunities for academic, personal, and professional advancement.
Notable celebrities and local leaders, including Patti Austin, Renee Poussaint, Dr. Julianne Malveaux, Sheila C. Johnson, Jack Davies, and the school’s co-founders, Reid Weingarten, David Domenici and James Forman, Jr., were honored by students from across the four campuses of the See Forever Foundation/Maya Angelou Public Charter School community.
GlobalGiving Searches for US Organizations
GlobalGiving has announced The American Open opportunity. Nonprofit organizations working in the US can apply until May 14, and the contest runs June 8-30. Through the Open, projects have the opportunity to earn a spot on the GlobalGiving website if they can mobilize supporters to raise $4,000 from at least 50 unique donors during this time period. Projects meeting these thresholds can also compete for additional funding: the three projects receiving the most funding will receive additional awards of $3,000, $2,000, and $1,000, respectively; the project receiving the most number of donations will receive an additional $3,000.
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