V.

New Public & Private Partnerships

“The 21st century will be the century of the social sector organization. The more economy, money and
information become global, the more community will matter. And only the social sector nonprofit
organization performs in the community, exploits its opportunities, mobilizes its local resources, solves
its problems. The leadership, competence, and management of the social sector nonprofit organization
will thus largely determine the values, the vision, the cohesion, and the performance of the 21 st century
society.”

-Peter F. Drucker
Drucker Foundation, 1999 in Review

“The formulation of a problem is more important than the solution.”

-Albert Einstein

When I started my career almost thirty years ago, there was an active “war on poverty” by the

Federal government. During the last thirty years we have increasingly experienced an electorate

that does not see government as a primary means for responding to our social issues. Ronald

Reagan articulated and represented this view:

“Generosity is a reflection of what one does with his or her resources—and not
what she or he advocates the government to do with everyone’s money.”

I am not going to spend the time here arguing whether that is a good or bad thing, other than to

acknowledge what I believe is a major part of public thinking today. We recently debated how

large a tax cut there will be in our Federal budget, while at the same time acknowledging that the

needs of education, health care, the environment and our children are supposedly important.

Few national politicians of either major party are proposing that citizens consider the creation of

new revenue through increased taxes, and this is also generally true at the state, county and city

levels all across the country. The result of this position is that
government, at whatever level, will have its hands full trying to fund existing major

commitments such as education, adequate infrastructure, public safety, Medicare and Social

Security. This is a gloomy scenario for possible expanded government funding for human

service needs with a more likely outcome of cutbacks on our current investment levels.

Funding for human services is generally a longer-term investment and the American public

usually expects quick, immediate, a.k.a. “quarterly” results.

I highlighted in an earlier

essay about the “war” that is

occurring. There continues

to be growing challenges

involving issues and

problems of poverty, racism,

adequate childcare, child

abuse and neglect, substance

abuse, and individual and

family violence.

Our country was founded to

a great extent on the skeptical attitude about the role of

government in our lives as citizens. Most of the electorate today commonly believes that “the

government which governs least governs best.”

However, as Craig Wruck from U.S. Bank said recently in an article titled, “Helping Donors

Save Society”:

“There was a contract, a bargain that we Americans made in exchange for this limited
role of government. The bargain is simply that, in exchange for maximum individual
freedom and minimum government intrusion, each of us agrees to take on significant
obligations for the work of the community. In our system, good works such as feeding
and sheltering the poor, providing for the sick and needy, and caring for the children
when parents cannot, appear to have been some of the obligations we each took on in
exchange for a more limited form of government.”

With the inevitable cutbacks in government spending on human services in the coming

years and a continual growing need for some type of response, an opportunity is emerging

to develop new models of thinking, new roles and new investment paradigms from all our

various sectors, including government, corporate and business, philanthropic and

nonprofit organizations. As Abraham Lincoln said, “The dogmas of the quiet past are

inadequate for the stormy present…So we must think anew and act anew.”

The governmental sector will need to plan how it can leverage what existing resources it has,

continue to establish standards, and make sure that services are provided in a legal and beneficial

manner. However, its most important emerging function I believe will be to convene other

stakeholders and partners, along with their own investments, to help leverage investments by

major individual donors, private foundations, and corporations in nonprofit organizations. This

is a new skill set that few politicians and/or government officials have developed. Historically it

has been a huge challenge just for different levels of government to cooperate in joint planning,

funding and/or delivery. It will be a significant paradigm shift for government at all levels to

begin to work as partners with the other non-governmental sectors. Some evidence of
change has begun, such as the new Innovation Partnership organization started in Portland,

Oregon in October 1999.

Lester Thurow pointed out over twenty years ago in his book The Zero Sum Society that

government generally is able to effectively divide up spoils but has a very difficult time dividing

up losses.

A vulnerability for the governmental sector during this transition time will be to focus primarily

on its own employee base. Public sector unions have grown stronger over the last twenty years

and they appropriately continue to fight for their members’ wages and benefits and to a lesser

extent for more jobs within the public sector. Without new revenue, new government jobs will

be very difficult to create.

If we are to have any significant hope of new investments of funds and/or people resources,

government officials and policy makers will need to be challenged to develop new partnerships

with the philanthropic, private and nonprofit sectors to respond to the growing human and

community issues. These new sectors will increasingly not invest money, time and other

resources directly to government. However, I believe the non-governmental sectors will

step up to joint partnerships through nonprofit organizations.

The private sector continues to appropriately focus on generating shareholder wealth, which in

turn creates jobs, tax revenue and capacity for a greater standard of living. The private sector’s
mission is not fundamentally about philanthropy. However, it can and has brought some

significant talent, models and expertise to the challenges we face as a community and as a nation.

The private sector needs to realize its limits and vulnerability as well in community problem

solving. The commitment, patience and understanding of the complexities and need for

partnerships in the public and nonprofit worlds is often difficult for business leaders to

master. In addition, too often corporate and business giving has been spread very thin and wide,

and often in isolation and ignorance of other funding and service streams. Worse yet,

community involvement and giving by some corporations and businesses has been only about

public relations and having a good image, i.e. cause marketing.

The non-corporate and business part of the philanthropic sector includes individuals of major

wealth, affluence, and foundations. As a country we have never been richer, and there will be a

significant wealth transfer to the boomer generation as the “Greatest Generation” passes. New

foundations continue to be created.

Individual and foundation giving for the most part has also historically been done in isolation,

similar to corporate giving. As Steven Issacs, President of Health Policy Associates said in a

recent article in The Chronicle of Philanthropy:

“While many of the nation’s largest and most prominent foundations frequently insist
that charities and nonprofits collaborate, grant makers themselves are often unable to do
so.”
More than ever, partnerships are needed in community building. Resources, people and

organizations need to be leveraged, and any institution providing funding in an isolated or

“solo” manner is becoming more a part of the problem than part of the solution.

“The significant problems we face cannot be solved at the same level of thinking that
created them.”
-Albert Einstein

Philanthropists, whether as individuals or through foundations, need to begin to develop

the commitment, discipline and foresight to focus their work with other partners within the

governmental, philanthropic, nonprofit or corporate sectors if we are to have hope and

success in addressing our social issues. Grant makers should begin to examine their funding

strategies to encourage innovation and ongoing capacity building of nonprofit organizations, as

well as leverage their funding with other funders. Nonprofit organizations are in desperate need

for ongoing infrastructure funding support and the governmental sector will not be the likely

source for this funding.

The nonprofit sector must also change. Since 1970 there has been an explosion of nonprofit

organizations. All too often nonprofit organizations have ignored their relationships and

connections with other community organizations. Frequently they have been encouraged to

follow the business model of competition for resources and visibility rather than developing

collaborations and strengthening partnerships.

The essence of the new model for all sectors committed to effective community problem

solving will be to compete to collaborate more effectively.

Thomas McLaughlin said it well:

“The bulk of innovation today will take place not in programs and
services but in management. And the thrust of that innovation will be
toward greater collaboration between nonprofit organizations and all others
carrying out similar missions. What we call mergers and alliances are really just
a part of the innovation that the nonprofit sector must deliver over the next two or
three decades.”

With government funding likely shrinking for human services, the philanthropic and

private sectors will become even more important. As I stated earlier, these sectors will unlikely

give funds directly to government, but they will be very open to supporting nonprofit

organizations.

The major ingredients of new models are collaboration and partnerships. Partnerships are messy,

time consuming and complex. Sorting out leadership, accountability and conflict issues are not

easy or smooth.

Too often institutions suffer from the old adage, “When the only tool in the tool box is a

hammer, the whole world looks like a nail.” The problems of children, families and our

communities today are deeply complex and no one intervention, funding source or strategy

can be successful unless its tied and connected to other initiatives and resources.

Nonprofit organizations and structures can become excellent vehicles for leveraging

traditional government funding, as well as maximizing philanthropic and corporate

support. Nonprofit organizations can also more effectively engage other citizens in the
work of their communities. Borrowing Stephen Ambrose’s term, “citizen soldiers” are needed

for today’s battles of building more supporting and caring communities.

“Somehow we got the idea that someone else could do just as good a job doing the work
of the community. What is worse is that we thought someone else would pay for it. In
the process we forgot our old notions of community responsibility for those less fortunate
than ourselves.” He goes on to say, “I would suggest we’ve lost sight of an original
social contract, the one that requires each of us to take some responsibility for others in
our communities.”
-Craig Wruck

There is an opportunity for nonprofits to tap into new “citizen soldiers,” the group of individuals

over the age of 50 that is rapidly emerging. The demographics of the age group 18-25 are

shrinking and fewer individuals in the younger age group are going into the professions of

nursing, teaching and human services. The labor shortages that nonprofits currently experience

will only be greatly exacerbated in the years ahead.

Thus the need to forge partnerships with the over age 50 experienced workforce is a significant

opportunity if not a necessity. 76 million boomers will be moving into this stage of life.

Nonprofits that redesign and adapt their workplaces to meet the unique challenges and needs of

this age group will create a tremendous opportunity for synergy. As Margaret Mead said:

“Never doubt that a small group of thoughtful, committed citizens can change
the world. Indeed, it is the only thing that ever has.”
Beverly Goldberg, in her book Age Works: What Corporate America Must Do To Survive

the Graying of the Workforce, emphasizes organizations need different attitudes and assumptions

to tap into this new workforce . She points out some of the negative assumptions:

“Older workers are ill more often than younger workers. The reality is that older workers
tend to be absent from the workforce less often than younger workers. Older workers are
less flexible and adaptable than younger workers.” The reality is that while older workers
are more likely to ask why a change is being made, it does not mean that they are
unwilling to accept it. ‘You can’t teach an old dog new tricks.’ The reality is that people
over 40 are the most educated of that age group that we have ever had, and are deeply
committed to continuous learning.”

Nonprofit organizations will need to examine their policies and procedures, and develop more

part-time, flexible and project oriented work to tap into the needs of the over-50 age group.
The engagement needs of this new workforce will tend to focus on the desire for meaningful

work, recognition, opportunity for learning and making a difference. Compensation and benefits

are often less a need of the experienced worker. Nonprofit organizations have generous

amounts of the former, but little of the latter, now and for the foreseeable future.

Nonprofits will need to develop new training curriculums to be used not only by the older,

experienced worker, but also training focusing on integrating more diverse teams of younger,

older and multi-cultural employees with different work schedules and needs.

I believe that the social, emotional, psychological and spiritual needs of individuals over 50 will

include the desire to stay meaningfully involved and productive.

As Erich Fromm said in The Art of Loving:

“Giving is the highest expression of potency. In the very act of giving, I

experience my strength, my wealth, my power. This expression of
heightened vitality and potency fills me with joy. I experience myself as
overflowing, spending, alive, hence joyous. Giving is more joyous than
receiving, not because it is a depravation, but because in the act of giving
lies the expression of my aliveness.”

Research on new models and strategies of community involvement are needed on behalf of all

sectors including government, private, philanthropic and nonprofit. These models and strategies

should include tapping into the growing new workforce that will be rapidly emerging, the over

76 million boomers between the ages of 50 and over.

“If we knew what we were doing, we wouldn’t be calling it research, now

would we?”
-Albert Einstein