May 2015

By James B. Stewart, New York Times |

In what should be a ringing alarm for nonprofit boards across the country long accustomed to minimal scrutiny or accountability, Attorney General Eric T. Schneiderman of New York has signaled that the laissez-faire approach to nonprofit governance is over.

Mr. Schneiderman’s office has sent letters to the board members of Cooper Union for the Advancement of Science and Art, the prestigious college founded in Manhattan in 1859 by the philanthropist Peter Cooper on the premise that it be “open and free to all.” Last year, after the school said it faced financial ruin otherwise, it began charging tuition.

The investigation, reported earlier by The Wall Street Journal, is focusing on the board’s management of its endowment; its handling of its major asset, the Chrysler Building; its dealings with Tishman Speyer Properties, which manages the skyscraper; and how it obtained a $175 million loan from MetLife using the building as collateral, according to people involved.

By Ken Banks, Ashoka fellow, Stanford Social Innovation Review |

Bill Siemering was about to jump in his cab to make an airport pickup when his home phone rang. It was the vice president of the MacArthur Foundation. “I was shocked,” said Bill, “when he told me I was being awarded a MacArthur Fellowship.” That phone call proved to be the turning point of his life.

He never did make that airport pickup.

Years before, Bill had been the director of programming of National Public Radio (NPR), where he had created the first signature program in public radio, All Things Considered. He had also crafted NPR’s first mission statement, and while vice president at WHYY-FM in Philadelphia, he was instrumental in bringing Terry Gross and Fresh Air from a local to a national audience. Not bad, you might think.

Despite blazing a trail, though, Bill had eventually found himself out of work; at that time, there just weren’t many opportunities in his sector. As he put it: “I’d spent over 30 years practicing the art and craft of my profession and had no way to use it. I felt like a pianist who lost the use of his hands.” Out of frustration and the need for a job—any job—he started training to be a driver for a car service at Philadelphia airport. He was about to go on his first driving assignment when he got the MacArthur call.

By Gabriel Kasper & Justin Marcoux, Stanford Social Innovation Review |

Innovation, it seems, is easier said than done.

Despite growing interest in applying innovation methodologies to social sector challenges over the past decade, more often than not, philanthropic efforts to support innovation fall short.

That’s because the processes, strategies, and structures that funders need to deliberately seek out and support innovation are often quite different from the ones they use for traditional grantmaking—a lesson many funders learn the hard way.

In our SSIR article “The Re-Emerging Art of Funding Innovation” last year, we highlighted many specific approaches that innovation funders are now using. But we find that many grantmakers still end up falling into one or more “innovation traps”—common mistakes that can prevent them from succeeding as they try to find and fund breakthrough social change.

Some of these traps are challenges related to execution and implementation; others are more conceptual, rooted in the way organizations think about what innovation is and what it can achieve. As you read through the eight common innovation traps below, ask yourself whether your organization has faced one or more of these problems, and consider sharing your experience in the comments.