If there is anything I love more than thinking about non-profits, it's eating free food. When
Sofia M. from
Social Venture Partners invited me to a *free* lunch sponsored by
Philanthropy Northwest with
Emmett Carson from the
Silicon Valley Community Foundation, I readily agreed.
I wasn't familiar with Emmett Carson before this invitation, so I wasn't sure what to expect. I left feeling inspired, challenged and deeply impressed. Here is a brief summary of Carson's main points:
Carson trained as an economist. Economics is perfect training for a career in philanthropy, he said, because it focuses on allocating scarce resources to unlimited wants. Economics also taught Carson to understand market failures and he views philanthropy as a response to market failure.
Carson lamented the lack of diversity in the boards and staffs of philanthropic organizations. These organizations have not diversified in more than 30 years, he said. During the same time period, corporations and other organizations have diversified to a much greater extent. Why do philanthropies feel insulated from the cultural forces that are impacting the rest of society?, Carson asked.
Carson discussed President Obama's
proposal to reduce the tax deduction allowed for charitable donations. Carson said, foundations, organizations and donors need to understand that charitable donations don't "belong"to them. Because tax deductions subsidize the donations, government has a right to regulate or place restrictions on how the money is spent. And, if philanthropies don't evolve and become more reflective of current society, it is likely that government will step in and mandate that evolution.
The current economic situation, Carson said, is more than just a cyclical low in the business cycle. It is an inflection point in history. Just as the Great Depression caused society to rethink the social contract, Carson expects a significant redrafting of the social contract in the near future.
Non-profits and philanthropies need to realize that this is a critical moment. "This is our moment," Carson emphasized. We can't be so focused on planning for when the economy returns to normal. We need to capitalize on the opportunity to participate in the revision of the social contract. In a sense, Carson said, we all need to adopt the California (I'd say, West Coast) mindset and embrace structural change. Instead of worrying about self-protection, philanthropies need to be willing to change and identify new opportunities for relevance and effective social change.
This description only begins to capture Carson's thinking on philanthropies. Fundamentally, he urged the people in the room to take a break from the day-to-day rat race, and think big thoughts and take bold action with respect to paradigmatic shifts and responding to structural changes. Thinking about my own board experience and the ongoing struggle to have more
generative conversations, I wonder if foundations will make the effort to prioritize this type of thinking. I agree with Carson that they should.