Recession, Recovery, and Renewal: Long–Term Nonprofit Strategies for Rapid Economic Change

Praise for Recession, Recovery, and Renewal

"This is a must–read for any professional working in the field of philanthropy today. Dr. Raymond cuts through the political rhetoric and breaks down what really happened in the Great Recession and the challenges and opportunities it has created for nonprofits in this shifting global economy. This insightful analysis provides nonprofits with practical advice for how to survive, and even thrive, in these turbulent times."
Elizabeth A. Amery, Vice President of Development, Environmental Defense Fund

"Recession, Recovery, and Renewal: Long–Term Nonprofit Strategies for Rapid Economic Change is full of more detailed descriptions of the global mega–trends likely to affect our business, including north vs. south global economic development, public vs. private resource availability, investment vs. philanthropy capital formation, changing donor needs, commercial vs. social financial and cultural orientation, and more. Susan Raymond challenges every nonprofit leader to understand that these are no longer over–the–horizon challenges they are here and now and offers practical suggestions for how we can incorporate these into our planning efforts."
John McGeehan, Executive Vice President, Chief Operating Officer, Plan International USA

"The Great Recession left many nonprofits operating in unchartered territory. Luckily, they now have a guide. Susan Raymond′s timely account helps nonprofit and philanthropic leaders make sense of the recent past and make plans for a more resilient future. By weaving together emerging trend lines across the private, public, and social sectors together with real–world case studies, Recession, Recovery, and Renewal: Long–Term Nonprofit Strategies for Rapid Economic Change separates the hype from the reality to help leaders make more informed decisions."
Brian Walsh, Executive Director, Liquidnet for Good

List of Cases xi

Acknowledgments xiii

CHAPTER 1 Introduction 1

Looking Back and Its Dangers 1

Looking Forward and Its Challenges 2

Organization of This Work 4

PART I RECESSION AND RECOVERY 7

CHAPTER 2 Cascading Crisis 9

The Great Recession of 2007 2009

The Near–Term Roots 10

The Costs in Human and Economic Terms 16

The Nonprofit and Philanthropic Sector 18

CHAPTER 3 Recovery and Near–Term Economic Prospects 27

Overall Growth 27

Public Finance 29

Employment and Jobs 30

Household Incomes 33

Europe and Asia 35

Summary and Implications 37

PART II GLOBAL ECONOMIC CHANGE 43

CHAPTER 4 A Multipolar Global Economy 45

Economic Performance 46

The Global Middle Class 47

Industrial Structural Change 48

Capital Integration 50

Trade and Business Patterns 52

Summary and Implications 54

CHAPTER 5 Changing Corporate Context 59

The United States

Industrial Structure 59

Employment and Skills 61

Corporate Markets and Location 65

New Firm Formation 66

Summary and Implications 67

CHAPTER 6 Changing Corporate Context 73

The Global South

Corporate Growth 73

Labor Force and the New Employee 76

Innovation 77

Summary and Implications 79

CHAPTER 7 It Depends on What You Mean by Give 83

Investing in Problem Solving

Social Enterprise 85

Program– and Mission–Related Investing 87

Social Franchising 89

Impact Investing 90

Variations and Applications 92

Summary and Implications 94

CHAPTER 8 Wealth 99

New Faces and New Places

A Glance Backwards for Perspective 99

Globalization 100

Women and Wealth 103

The Rise of the Young 108

Summary and Nonprofit Implications 109

CHAPTER 9 The Global Benefits of Rising Well–Being 115

Education 116

Health Status and Its Consequences 120

Participation and Connectivity 124

Summary and Nonprofit Implications 125

CHAPTER 10 Next–Gen Leaders 129

The Emerging Corporate–Nonprofit Gap

Corporate Leaders 129

Nonprofit Leaders 132

Summary and Nonprofit Implications 134

PART III REQUISITE CHANGE IN THE NONPROFIT SECTOR 139

CHAPTER 11 The Globalization of Philanthropy in the United States and Abroad 141

Individual Giving to the World 141

Corporations: Giving Where the Markets Are 143

The Rising Strength of Philanthropy around the World 146

Summary and Implications 154

CHAPTER 12 The Erosion of Place 159

Migration 160

Borderless Technology 162

Summary and Implications 166

CHAPTER 13 Will Complexity Erode Trust? 171

Taxes and the Relationship with Government 171

The Views of the Public 175

Summary and Implications 180

CHAPTER 14 Programming for the Future 185

Global Health 186

States, Poverty, and Philanthropy 190

The Young and the Old 191

Summary and Implications 194

CHAPTER 15 The Arc of Philanthropic Innovation 201

The End of Definitions 201

A Complementary Resource System 202

A Word of Caution 207

Whence Passion? 208

Summary and Implications 209

PART IV STRATEGY FOR RAPID CHANGE 211

CHAPTER 16 Five Organizing Principles for Strategy amid Rapid Change 213

Maintain an Outward Line of Sight 213

Create a Culture of Evidence 214

Set Reasonable and Measurable Goals 216

Ask, Ask, Ask: How m I Doin ? 216

Attend to Brand 218

Do Not Act Alone 219

Summary and Implications 220

CHAPTER 17 The Utility of Fluid Discipline 225

Option 1: Run, Shoot, and Holler 225

Option 2: Fluid Discipline 226

Summary and Implications 238

CHAPTER 18 Indicators and Evidence: A Suggested Place to Begin 243

Categories 244

Possible Partners in Implementation 250

Summary and Implications 251

APPENDIX 1 Case Solutions 253

Case A: Plunging Resources and Community–Wide Crisis 253

Case B: Private Resource Strategies for the Long Haul 254

Case C: Private Fundraising Strategy in a Newly Open Society 254

Case D: Global Company Seeks Global Engagement 255

Case E: Public Resources and Private Outreach 256

Case F: New Leaders, New Passion, Persistent Problems 257

Case G: Strength to Strength: Partnership to Boost Engagement 257

Case H: Globalization and Social Media 258

Case I: Multichannel Pathways to Reach New Fundraising Markets 258

Case J: New Strength through Simplifying Identity 260

Case K: Communications Strategy for Shifting Demographics 261

Case L: New Institutions for New Demographics 262

Case M: New Brand Strategy amid Economic Crisis 262

Case N: Measuring Subtle Change in Diverse Organizations 263

APPENDIX 2 Self–Assessment Questionnaire 265

About the Author 269

Index 271

SUSAN U. RAYMOND, PhD, is Executive Vice President for Research and Analytics at Changing Our World, a full–service nonprofit and philanthropy consulting firm. In this role, Susan is responsible for designing and conducting business operating environment research for both nonprofits and foundations, as well as developing business plans and program evaluations for new and existing institutions. Susan is a member of the advisory board of the Center for Global Prosperity in Washington, D.C., and a member of the advisory boards of The Global Index of Philanthropic Freedom and America′s Unofficial Ambassadors. In 2012, the Director of the National Science Foundation appointed her to the board of the Civilian Research and Development Foundation. Susan has worked on philanthropy and economic development projects throughout Africa, the Middle East, and Eastern Europe, as well as in Russia and Asia and has held positions with the New York Academy of Sciences, The World Bank, Center for Public Resources, and U.S. Agency for International Development. In 2011, Women United in Philanthropy honored Susan with the Women in Excellence and Achievement Award. She has written for many publications, particularly in the areas of economics, healthcare, and corporate responsibility, and is the author of three books with Wiley.