Adapt to Succeed A New Model of Collaboration, Cooperation and Consolidation
We are in the Midst of a Sea Change In Order to Survive Thrive… We Must Change With It!
We are in the Midst of a Sea Change • Trends & Headwinds (What’s Changing) • What’s Not Changing • Possibilities for Collective Impact
Insurance Funding Is Changing • Integrated Physical and Behavioral Healthcare • Value-Based Payments • Mega-Mergers • Data-Driven
Government Funding is Changing • Fewer Contracts • Prevention Focused • Equity and Social Justice • Access Desserts • Buying Outcomes, Not Services
Philanthropic Funding is Changing • Boundaries are blurring between philanthropy & business. • United Way funding is decreasing or gone. • More pooled giving and donor advised funds. • Entry and mid-level giving are going down. • Funder fatigue, growing demand for outcomes and impact.
Our Sector is Changing • The big and strong are getting bigger and stronger. • Small organizations lack leverage and negotiating power. • 3% more nonprofits being added every year. • Low pay. High turnover. Shortage of trained staff. • Financially challenged
Financial Outlook Getting Worse • Over 210,000 Human Service Orgs. • >75% have budgets under $1M • 30% have less than 1 month operating reserve • 50% have negative operating margins over 3 years • 10% of CBOs went out of business during last recession
What’s NOT Changing Outcomes for Children and Families!
Dramatic Increase in Maternal Opioid Use A New Baby is Born Addicted to Drugs Every 19 Minutes e r a n e r d l i h C f o n W i d e n i n e g H e a % l t h D i s p a r t i t i e s r 0 a 5 g r r e e v d O n i K r o f Y i n C h i l d r e n o f C o l o r D A E R T O N Mental Health Issues in Children on the Rise g i n a s e c r n e I A r S P C o t l s r a e r e f R n i e n i l c e ChildTrends D Teen Suicide Now at 30 g n y i k c c n o a h t c S e Year High! p x E e f i L
What’s NOT Changing Sectors, Organizations and Services Remain Siloed and Uncoordinated
We decided to take a look in the mirror How can … ü Thousands of very small ü Financially challenged ü Working in silos ü Changing environment Solve today’s biggest issues? We Can’t!
Joining Forces Significant changes will be required of the not-for-profit, government and philanthropic to Strengthen Human Services sectors. Funders must encourage and incentivize innovation and disruptive partnerships, mergers and affiliations to realize maximum value, efficiency and impact. Boards that are serious about their legal and fiduciary duties must be open to the possibility of consolidation - and not solely as a last resort. Ballmer Group & Kresge Foundation
How might we Join Forces to Drive Collective Impact? Why Us?
Aligned Missions Where Hope Grows and Families Flourish. Where Kids Find Healing and Hope. We strengthen the lives of children, youth and families by restoring hope and stability. We promote and inspire youth to lead safe, healthy, and successful lives. We partner with families to build healthy foundations for children.
Aligned Vision All children are safe and healthy; Flourishing physically, socially, emotionally, and educationally; Well-nurtured by family and community.
Aligned Goals ü Expand timely access to Continuum of Care ü Reduce silos and system complexity ü Implement best practices ü Negotiate better reimbursement rates ü Share facilities, support services and infrastructure ü Align advocacy and communication ü Scale a more sustainable business model ü Dramatically Improve Outcomes and Collective Impact
The Partnership Matrix
Questions to Consider 1. Trends you are experiencing 2. Partnerships you’re already in 3. Fears and concerns of stakeholders
Creating and managing Collective Impact requires a separate organization to serve as the backbone for the entire initiative. The expectation that collaboration can occur without supporting infrastructure is one of the most frequent reasons why it fails.
Parent + Subsidiary (The Backbone) § Partners become Membership Orgs and make the new Umbrella / Backbone the sole member. § Partners operate as a subsidiary of the Umbrella Org. § Each org retains their name, assets and liabilities.
Example of What Org Chart Might Look Like Governing Board Of Directors for Parent Organization CEO Chief Program ORG 1 Chief External ORG 2 Chief Operations Officer Chief Financial ORG 3 Officer. Relations HR, Recruiting, Prof Officer Exec Director Exec Director Exec Director Assessments, Intake, Philanthropy, Comms Devel, Facilities, IT / IS, Finance Quality, Data, Outreach Transportation Billing Research, Training Advocacy Contracts • Mental Health, • Mental Health, • Mental Health, Addiction & Addiction & Prog. Director Addiction & Counseling Counseling Counseling • Nursing • Early Learning • Early Learning Prog. Director • Early Intervention • Early Intervention Prog. Director • Home Visiting • Home Visiting • Foster & Adoption • Basic Need • Housing Prog. Director • Basic Needs Support • Employment
We Can’t Do It Alone
From Siloed and Uncoordinated
To Aligned and Well Coordinated
Collective Impact There is no way society will achieve large-scale progress against the urgent and complex problems of our time, unless a collective impact approach becomes the accepted way of doing business. From Stanford Social Innovation Review
Game Changer In this environment, successful nonprofits must be more than service providers, they must be game-changers! From David LaPiana
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