2011 AYP Conference

Scaling Social Impact: Making the YMCA case

for the new philanthropy

“There will be no interruption of our permanent prosperity.”

“There will be no interruption of our permanent prosperity.”

- Myron E. Forbes, President Pierce Arrow Motor Car Co, 1928

Texas Graduation rate: 61%

Texas Poverty Rate: #2 in US

Angelo Mozillo, CEO, Countrywide

Beverly Hall, APS Superintendant

Anthony Weiner

Where Do We Turn For Moral Leadership?

The Y

Social Responsibility

Healthy Living

Youth Developmen

t

What is “Social Responsibility”?

Youth Development & Healthy Living are what we do.

Social Responsibility is where, how and for whom we do it.

Premise: The model Y is a Social Enterprise: We solve important social problems Our model is robust and sustainable Our model is scalable

Doing Well by Doing Good:

The Social Enterprise

What is Social Enterprise?

Bill Drayton, Ashoka: A social entrepreneur is not content just to give a fish or teach how to fish; [instead] will not rest until they have revolutionized the fishing industry.

David Bornstein, author “How to Change the World”: What business entrepreneurs are to the economy, social entrepreneurs are to social change. They are the driven, creative individuals who question the status quo, exploit new opportunities, refuse to give up, and remake the world for the better.

so•cial en•tre•pre•neur: n., 1. Society’s change agent: pioneer of innovations that benefit humanity. (Skoll Foundation)

Two Streams Of Practice

SOCIALENTERPRISE

SOCIALINNOVATION

Generating Earned Income

for Social Purpose

Better Ways to Create

Social Value

Commonalities

SOCIALINNOVATION

SOCIALENTERPRISE

Advocates recognize need for sustainable,

scalable financial models

Advocates recognize need for innovation, risks of not linking income to impact

Both increasingly

intrigued by innovative ways to use business methods and markets

to serve social good

Social Entrepreneurs:

Create and sustain social value

Pursue opportunities to serve this mission

Continuously innovate, adapt, and learn

Are not constrained by resources in hand

Hold themselves accountable for

achieving the social mission and

using resources wisely

Is the Y a Social Enterprise?

Venture, Growth & Smart

Philanthropy

The New Philanthropist

“Philanthropic families are looking to scale demonstrable solutions so they can reach millions of people, but they need a reliable way to do it. The need for scaling is painfully clear.  But we need a mechanism and a solution.”

Doug Bauer, senior vice president of Rockefeller Philanthropy Advisors

What attracts new philanthropists?

Growing indifference to non- or for-profit status

Growth philanthropists seek:

Solutions to important social problems

Sound, sustainable business models

Scale

Is the Y a Social Enterprise?

“The Best of Times…The Worst of Times”

Members: At our worst: A fitness club, teen drop-in

center At our best: Transforming lives

“The Best of Times…The Worst of Times”

Employees: At our worst: High turnover of part-time,

temporary workers At our best: Career professionals,

nurtured in the Y, committed to the mission

“The Best of Times…The Worst of Times”

Community: At our worst: Over-using debt, driving

membership units, focusing on bricks & mortar, serving the advantaged

At our best: Identifying and engaging friends of the Y, solving important social problems

The Practices of Socially Responsible

Ys

Socially Responsible Ys: 4 Key Practices

1. Constant focus on mission Engage the community

• Use role to drive values-consistent constituent behavior

• Reach out to, advocate for those without a voice

Educate & engage employees in mission work

Anonymity erodes community

Socially Responsible Ys: 4 Key Practices

2. Progressive employment practices Open-book management Job security/opportunity for

advancement Competitive salaries Strong, subsidized family

benefits plan

Socially Responsible Ys: 4 Key Practices

3. Conservative financial practices Reserve against volatility Match revenues and expenses Invest carefully in operations

• Limit the use of debt• Make mission-consistent investments

Collaborate with mission partners• Including other Ys, other agencies

Socially Responsible Ys: 4 Key Practices

4. Never compromise safety because of the perception of limited resources Safety is mission Engage constituents in safety

equation Safety mission is not limited to

YMCA buildings or programs• Community safety is goal

Is the Y a Social Enterprise?

Why Social Responsibility?

Keeps the Y mission-centered

Living communal values

Keeps the Y relevant

Addressing most important issues

Leverages Y’s power to convene

“Honest broker” in disparate community groups

Engages young staff, volunteers, donors

Looking for meaning

So, what can Ys teach?

Responsibility: “Of those to whom much is given, ___________” “The Ovarian Lottery”

Honesty: “The narcotic of gradualism” Those who comfort the afflicted must now

______________”

Caring, Respect: “Of the greatest leader, it is said when he is gone, _________________”

What can Ys do?

What does your community need?• Parenting skills, financial

literacy?• Violence prevention?• At risk teen programming?• Economic opportunity?

The Y as Social Enterprise:An elevator pitch

“Through developmental youth programming, parenting and financial literacy training, the YMCA increases educational achievement, lifts families out of poverty and improves economic outcomes and quality of life for all.”

The Next Step is Ours to Take…

Bobby Kennedy:“Few men are willing to brave the disapproval of their fellows, the censure of their colleagues, the wrath of their society.

Moral courage is a rarer commodity than bravery in battle or great intelligence.

Yet it is the one essential, vital quality for those who seek to change the world which yields most painfully to change.”

2011 AYP Conference

Scaling Social Impact: Making the YMCA case

for the new philanthropy