Next Stage - Social Impact Services

Social good strategy to amplify your impact

Nonprofit Leadership

Social Good’s Collaboration Challenge: Why Is It So Damn Difficult?

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In the world of social impact, a persistent question echoes: Why are nonprofits, municipalities, health systems, and private-sector companies so reluctant to collaborate?

While many point to competition for resources and inherent power disparities, research suggests that the root cause may be cultural—particularly here in the United States.

Exploring the Cultural Barrier: American Individualism

Sociologist Geert Hofstede’s 6-D model of national culture suggests Americans are uniquely defined by their fierce individualism. In Hofstede’s rating system, the United States ranks as the most individualistic society in the world, strongly favoring independence over interdependence.

Our penchant as Americans to resist working harmoniously together is literally everywhere you look — social media, political advertisements, homeowner’s associations, heck, even the aisles of your local grocery store (looking at you pushy shoppers at my Plaza-Midwood Harris Teeter).

And that’s perhaps in part because competition is deeply woven into the American experience, creating a significant barrier to building unified efforts. But, like it or not, collaboration is necessary, both in everyday life and as part of peer engagement  inside the for-profit and nonprofit sectors.

So how do today’s top organizations address the collaboration challenge?

Identifying Obstacles to Nonprofit Collaboration

In corporate America, the struggle to foster collaborative teams is well-recognized. The team-building service market tops $3 billion annually and is expected to grow to $9 billion by 2031.

Nonprofits and community-based organizations are expected to work together to solve society’s biggest challenges, but here’s something to consider: If corporate teams from a single organization, with similar educational backgrounds and related professional experiences, struggle to collaborate naturally, what hope do social good leaders have of effective cross-organizational collaboration? Without access to the team-building tools and resources afforded to the private sector, how can nonprofit leaders align their organizations’ diverse staff, needs, and interests?

That said, a general lack of resources is nothing new for those in social good.

At Next Stage, we often quote Dan Pallota, American entrepreneur and author, who in his famous TED Talk argued that our society places unrealistic expectations on nonprofits. He explores how our culture’s wrongheaded thoughts on compensation in social good force nonprofits into survival mode, stifling their potential for real impact:

“In the for-profit sector, the more value you produce, the more money you can make. But we don’t like nonprofits to use money to incentivize people to produce more in social service. We have a visceral reaction to the idea that anyone would make very much money helping other people. Interesting that we don’t have a visceral reaction to the notion that people would make a lot of money not helping other people. You know, you want to make 50 million dollars selling violent video games to kids, go for it. We’ll put you on the cover of Wired magazine. But you want to make half a million dollars trying to cure kids of malaria, and you’re considered a parasite yourself.”

And in a time where 22% of nonprofit employees are living paycheck to paycheck, it’s easy to understand why nonprofit leaders are feeling the pressure to prove their organization’s efficiency and worth to grantmakers and funders. This ever-present state of “survival mode” inevitably leaves little room for experimenting with cross-organizational collaboration — despite its potential benefits for addressing complex social issues.

But the collaboration barriers social good institutions face aren’t just cultural or financial. Nonprofits often are dealing with widely diverse perspectives, complicated power dynamics, twisted incentives for output metrics imposed by donors, and competition for limited funding opportunities.

Against these odds, it’s any wonder collaborative efforts in social good ever get off the ground in the first place.

So where do we go from here?

Shifting the Narrative

Nonprofit leaders are often motivated by a deep sense of mission and feel personally responsible for their organization’s success. While this perspective is noble and much needed in this sector, it’s important to recognize this outlook can create a “silo mentality,” making leaders hesitant to open up their operations or share resources with other nonprofits. Collaboration, in this context, can feel like a risk — a relinquishment of autonomy that might dilute their own organization’s impact or slow its progress.

But that sense of ownership and mission that drives nonprofit leaders could be leveraged to encourage cross-organizational collaboration. By shifting the narrative away from competition and toward shared outcomes, we can highlight that nonprofits are all part of a larger ecosystem working for the common good.

This requires not just a shift in mindset but also practical support for the underpinnings of collaboration — relationship-building that leads to feelings of connection and trust.

It’s the main idea behind Cultivate Impact®, our digital collaboration management tool that centers the building of social cohesion between platform participants as a central goal. We believe that, deep down, people working to create positive outcomes for others have more in common than they think they do. By highlighting those areas of intersection and sparking engagement around them, we work to forge more effective networks of people working together toward common goals.

Achieving Cross-Organizational Collaboration

If corporate America is spending billions of dollars on team building to sell consumer products, shouldn’t institutions advancing social good be encouraged to invest in similar supports?

By addressing the cultural and practical barriers to collaboration, we can unlock the full potential of nonprofit organizations and create significant, lasting impact in our communities.

Interested in learning more about Cultivate Impact® and how it creates more effective collaboration? Reach out to schedule time to chat.

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Next Stage CEO Josh Jacobson launched Next Stage as a social enterprise in 2014, bridging his professional experiences as a nonprofit practitioner with his consulting expertise. He has led Next Stage’s work with 200+ clients, including nonprofits, private-sector companies, municipalities, faith institutions, philanthropies, and community-based organizations. Josh’s skills in strategic positioning and tactical design help clients achieve their goals. He guides Next Stage’s work in strategic planning and collaboration management and is a major contributor to the company’s thought leadership efforts.

Reclaiming Advocacy: A Nonprofit’s Guide to Impactful Community Action

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In today’s polarized climate, “advocacy” sometimes gets a bad rap. As a result, some nonprofits and community-based organizations shy away from engaging in such efforts. 

But advocacy is so much more than just outspoken public support for a particular cause or policy.

For nonprofits and community-based organizations, advocacy represents a powerful opportunity to:

  • Present a case for support of the organization’s mission through storytelling, comparative analysis, and trend research
  • Build and cultivate relationships with community partners
  • Publicize what your organization hopes to achieve by outlining funding support, resources, and defined next steps

To be a nonprofit leader is to be an advocate. But leading a movement requires organizations to drive systemic change—which is no small task. At Next Stage, we feel nonprofits and mission-driven organizations are uniquely positioned to fuel effective and sustainable efforts to achieve that needed change. They just need to know where to start.

Pushing Past Discomfort

Many nonprofits have established, comfortable methods for promoting their mission, vision, programs, and services. These traditional approaches often include educating the public about their work, raising awareness of their cause, or engaging donors and volunteers to help build organizational capacity or assist with branding efforts.

While these methods are a form of advocacy and help people understand the organization’s scope, there’s a more intensive approach that requires “thinking outside the box” and embracing discomfort. This deeper level of advocacy may involve:

  • Meeting with local government officials (e.g., city council members or county commissioners)
  • Writing public letters to make initiatives part of public record
  • Organizing protests to draw attention to the cause

These assertive tactics can be uncomfortable but may be necessary to effectively and thoroughly address the nonprofit’s cause and help drive meaningful change.

Building Your Advocacy Blueprint

In a recent Next Stage client engagement, we asked the following questions regarding advocacy efforts to help spark this kind of “out of the box” thinking:

  • What ways can your organization share information beyond standard communication methods like social media and email?
  • What decision-makers could support your initiative (e.g., elected officials, community partners, etc.)?

Wondering where your organization should begin? Here are some key action steps to consider:

  • Amplify community voices. Speak up for individuals who are overlooked. Share stories about your personal journey and invite others to share theirs. This kind of storytelling is not only validating but also enlightening.
  • Adopt an asset-based lens. Educate yourself on how to best communicate the challenges of the people your nonprofit faces by recognizing what resources are already in place. What “neighborhood PhDs” exist that you can connect with? Where are key community locations you can leverage to connect with and poll constituents to gain their input? What do you already know about the most pressing issues facing your community? How can you use that knowledge to design open-ended questions that invite room for additional concerns to be surfaced and addressed?
  • Establish an action plan and determine goals. What do you want to achieve and how do those goals align with your organization’s values? This allows for accountability in staying the course on specific objectives. Plus, it enables you to share your visionary advocacy plan with others to gain their approval and support.
  • Find allies—and opposition. Identify people who share your mindset around challenging the status quo but be willing to also discuss your goals with people who may not necessarily agree with your line of thinking to gain a holistic perspective. Having conversations across the aisle proves that you don’t necessarily have to fully agree to achieve change in a positive direction.

Embracing Your Advocacy Mission

One of the primary goals of advocacy is to bridge the gap and provide an equitable framework between constituents and decision-makers while advancing policy change and collective impact on the local, regional, and federal level. The stakes are high—especially for the children, families, and individuals your organization serves. It’s also important to recognize that advocacy can be a slow and lonely process. It requires patience to achieve sustainable and life-changing outcomes, but it’s worth it.

So don’t shift the responsibility thinking it’s another organization’s job to do the critical work of advocacy. Nope, it’s your job. But you don’t have to do it alone!

Review your approach. Push through the discomfort. And lead the charge in your unique way.

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Looking for support on how your organization can get involved in advocacy efforts?

Join us for our next FREE webinar in our Community Voice series: Advocacy & Community Voice: Building a Movement of People.

We’ll examine:

  • How to integrate advocacy efforts into your nonprofit
  • Why using community insights can drive change
  • Strategies for building a movement of people

This free webinar will run September 19 at 11:00 am ET. Register here!

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Next Stage Senior Director of Community Voice Helen Hope Kimbrough centers the perspective and lived experience of others to inform meaningful strategic planning and implementation efforts. Helen also champions diversity, equity, and inclusion for societal and organizational change. She serves on the board of the Charlotte Mecklenburg Library Foundation and Parent Child+ and is the author of four multicultural children’s books. She’s the founder of an independent publishing company and cohost of the Behind The Throne podcast. A graduate of Hampton University, Helen holds a Bachelor of Science in Marketing. She also has certifications in “Systems Thinking” and “Diversity, Equity, and Inclusion in the Workplace” from Cornell University and the University of South Florida, respectively.

Fundraising or Business Development: What Are We Really Doing Here?

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A few weeks ago, I presented at the 2024 AFP NC Philanthropy Conference with a talk titled Why Was It Declined? Navigating the New Realities of Corporate Social Responsibility. It not only marked my return to engagement with AFP-related events but also revisited Next Stage’s Profit & Purpose series of community research.

My presentation outlined what Next Stage has learned over the years about what drives private-sector companies to allocate resources to nonprofits. I’ve presented this talk in some form or another for the better part of a decade, peeling the onion with each passing year to get at the heart of the matter.

The session appeared on the learning track Rebels, Renegades & Pioneers — apropos for thought leadership from our social innovation company. And, as usual, this talk raised some eyebrows.

The talk’s primary message is that many companies — not just publicly traded corporations — have increased their internal expectations for creating positive community impact as a result of pressure via socially responsible investing. It’s a trendline that’s only increasing (despite the headlines), and this trend is positioned to be one of the most important paradigm shifts in the philanthropy landscape over the next decade. These expectations will influence how organizations can address inequity, economic and social mobility, and a host of other societal ills for years to come.

This shift suggests a new marketplace for investment where nonprofits can build lasting relationships with companies centered on service delivery instead of byproducts, like cause marketing or employee engagement.

The primary barrier? The common nonprofit perception that “corporate philanthropy” is merely a reward for a job well done. 

Is Philanthropy Selfless or Selfish?

Self-interest has always been at the heart of philanthropy, whether we like to acknowledge it or not. And yet it’s verifiably the truth.

An essential book on the topic — Donor-Centered Fundraising by Penelope Burk, the founder of Cygnus Applied Research — uses data-supported research to back up the assertion that donors give selfishly. They give because it feels good to give, and organizations that help donors feel good about their contributions retain them and grow their giving.

“Warm glow altruism,” as Burk describes it, is a function of the donor positioning themselves as the protagonist on a journey. It’s the good they want to do that drives their story forward.

And while nonprofits tend to readily celebrate a donor’s generosity, they often make the misstep of centering those celebrations around their own story, their own programming, and their own efforts. But when organizations talk primarily about themselves, they risk alienating such donors. A donor may wonder, “How do I fit into this narrative?” And importantly, if they don’t see their starring role in the ultimate impact of their contribution, they’ll be less inclined to donate again in the future. 

Adopting a Business Development Mindset

With this focus on self-interest as a backdrop, nonprofit development professionals would be well-served to shift to seeing themselves as vendors to companies — ones that deliver a service that meets a need. The term “fundraising” emphasizes the dollar raised rather than the value produced in an exchange. Nonprofit fundraisers who view their role as building win-win partnerships that add value for both parties (donor and recipient) are far more likely to be successful.

In this way, the development department in most nonprofits could be rebranded as a form of business development. The nonprofit’s services serve as a platform for value exchange. The key is to understand better what the customer’s (in this case, the donor’s) needs are and then build an alignment.

This is not only true for the relationship between nonprofits and the private sector. It’s a concept that can be applied to financial support from foundations, individual major gifts, and the annual fund. What’s more, it’s likely how most nonprofits already view funding from the government (where grant compliance makes clear the role data plays in demonstrating value exchange).

As a former development professional who now leads business development for my own private-sector company, I can speak from experience — it’s the needs of the customer (again, the donor) that matter. Here’s how you can better position yourself for these discussions:

  • Do your research. Donor research tends to focus on identifying capacity and affinity for a mission based on support for similar causes. Understanding what might be driving specific interest in your nonprofit requires reframing the cultivation process, exploring how values, relationships, and external factors influence decision-making.
  • Talk less (Smile Listen more). Showing interest in your prospect should be about more than just small talk before launching into a pitch. Demonstrate a desire to learn. Ask for a tour of the company’s headquarters. Inquire about the philanthropy foundation’s namesake. Show a desire to build a partnership rather than engage in a purely transactional relationship.
  • Focus on the value. Nonprofits tend to over-deliver on content when presenting to institutions, burying the lede in ways that can frustrate prospective donors. A one-page summary that draws attention to the value exchange can help clarify expectations for all parties. If you think of your solicitation less as a request for support and more as a memo of understanding, you’re starting to get the picture.

Embracing a New Nonprofit-Donor Dynamic

It’s time for nonprofits to embrace a business development mindset when engaging with those who provide them financial support — especially corporate partners. Fundraising should no longer be viewed as asking for contributions as a reward. Instead, fundraising should be positioned as a way to create value-driven partnerships with mutual benefits. By understanding the self-interest of donors and aligning your services with their goals, nonprofits can establish long-term, sustainable philanthropic relationships. 

As the landscape of philanthropy continues to evolve, nonprofits who prioritize understanding their donors’ needs and focus on value exchange will be better positioned for success in the increasingly competitive marketplace for social impact.

If you disagree, I’ll probably be presenting on the topic at a philanthropy conference in the future. Stay after and chat for a while — I’d welcome your feedback.

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Next Stage CEO Josh Jacobson launched Next Stage as a social enterprise in 2014, bridging his professional experiences as a nonprofit practitioner with his consulting expertise. He has led Next Stage’s work with 200+ clients, including nonprofits, private-sector companies, municipalities, faith institutions, philanthropies and community-based organizations. Josh’s skills in strategic positioning and tactical design help clients achieve their goals. He guides Next Stage’s work in strategic planning and collaboration management and is a major contributor to the company’s thought leadership efforts.

The Hidden Treasure in Your Nonprofit: Why Frontline Voices Matter

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Did you know there’s a wealth of untapped wisdom within your nonprofit? It’s your staff and team members — especially those most proximate to the work. Their perspective can offer meaningful insights to amplify your organization’s mission. 

But boots-on-the-ground staff, the ones carrying out the mission daily, are often forgotten when an organization’s leadership comes together to refine its programming or engage in strategic planning. They’re often seen simply as the “doers” of the work — the ones who will implement the plans, designed by leadership, that will keep the organization structurally sound and afloat. But when directives come from the top, with a big-boss mindset, organizations lose out on a lot of value.

Without a way to bridge communications between frontline employees and management, nonprofits risk overlooking key insights that would strengthen their organizations’ effectiveness.

Tapping into Frontline Wisdom

When was the last time you invited your frontline employees to the planning table? And not just for a checklist or progress report, but a true engagement of ideas? When was the last time they were truly listened to, with the chance for their ideas to become a part of the organization’s broader plan?

Nonprofit employees actively seek this level of respect and internal goodwill. Your staff wants to contribute to your organization’s mission — and leveraging their wisdom can strengthen your nonprofit’s longevity and effectiveness.

That’s why we published Inside-Out: The Case for Community Voice, to reframe how organizations collect and consider input. For some nonprofit leaders, this requires a mindset shift — a traditional approach would see organizations gathering knowledge and insights at the top, allowing those to then trickle down into their agency’s programs, services and resources. For others, the desire to include and amplify their staff’s voices is there, but they find themselves falling short in executing an effective internal communications process. So, they default to the standard (and comfortable) top-down approach.

But a nonprofit’s internal feedback loop (or lack thereof) plays a key role in organizational strength because it directly relates to an organization’s values and guiding principles.

Building a Stronger Organization from Within

At Next Stage, we use an equation: Values + Processes = Internal Culture & External Brand. We believe living out your values while adhering to a set of protocols and processes is what defines both your workplace culture and public perception. A lack of clearly expressed, well-defined values negatively impacts trust and belonging internally, which then limits outbound engagement for your brand.

I’ve witnessed this misstep firsthand. A client mandated a set of changes to his staff, hoping it would get his team in alignment with his plans. But all this achieved was an increase in employee dissatisfaction and a breakdown in his staff’s trust in the organization’s leadership. As a result, many employees left, and those who remained didn’t feel connected to the company’s culture, mission or values.

For this particular client engagement, I began with a discovery phase. Although standard practice might dictate that a discovery phase should begin with mid-management and executive-level stakeholders, I talked first with the organization’s frontline employees. It might be logical to assume that executives know the most about their organization’s programming, marketing and operations, but I’ve found that’s often not the case. Additional voices must be included to get the whole picture to best support an institution’s strategy, direction, and vision. When you allow frontline workers to relay ideas and share their experiences, it only ever serves to better your organization. Also, starting discovery at the top can allow bias to creep in, so using this nontraditional approach can help mitigate this risk and allow for more robust, productive discussions.

Aligning Values, Culture and Brand

So how do you best listen to the people you entrust with advancing your nonprofit’s mission? How can you use their wisdom and experience to inform your institution’s future direction? Start with the following:

  • Empower your employees to use their voices.
  • Create a safe space for conversation, ideation and belonging.
  • Listen intently. In other words… stop talking so much!

To learn more on this topic, we invite you to join our free webinar, Human Resources & Community Voice: Listening to Your Employees, on August 29 at 11:00 a.m. ET. We’ll explore:

  • Why listening to employees is crucial for effective HR
  • The value of frontline insights and storytelling
  • How to implement a feedback process to foster a positive workplace culture

See you there!

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Next Stage Senior Director of Community Voice Helen Hope Kimbrough centers the perspective and lived experience of others to inform meaningful strategic planning and implementation efforts. Helen also champions diversity, equity and inclusion for societal and organizational change. She serves on the board of the Charlotte Mecklenburg Library Foundation and Parent Child+ and is the author of four multicultural children’s books. She’s the founder of an independent publishing company and cohost of the Behind The Throne podcast. A graduate of Hampton University, Helen holds a Bachelor of Science in Marketing. She also has certifications in “Systems Thinking” and “Diversity, Equity, and Inclusion in the Workplace” from Cornell University and the University of South Florida, respectively.

Why “Wait and See” Is a Failed Strategy

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“I don’t know, Josh. I think we need to take a wait-and-see approach…”

It’s perhaps my least favorite phrase in social good — the dreaded “wait and see” that often rears its ugly head toward the end of an ambitious strategic planning activity. 

The process of strategic planning is fascinating. Over the course of many months, the leadership of an organization invests time, energy and resources to move through phases of research and business plan development. Then, once the implementation plan has been finalized, the organization’s leaders are onboarded as the “owners” of following through with the well-defined, insight-informed next steps.

It’s the exciting part — when the rubber meets the road and theory prepares to transform into action. And yet… 

When the time comes to roll up the proverbial sleeves and get motivated to advance the strategy, too often leaders get cold feet. Why?

When thoughts of risk creep into the room, concerns for public perception can overtake passion for impact.

“We’re still committed to it directionally, but we just want to slow down and wait and see what happens…”

Ugh.

What “Greatness” Really Looks Like

Unwillingness to commit to solutions and action contributes to the erosion of faith in social good organizations.

Much of Next Stage’s decade-long focus on trust-building is reinforced by ongoing research conducted by Gallup. As noted in our recent community report, trust is at an all-time low, with significant declines in public confidence in America’s systems. It continues a 40+ year trendline of eroding public trust.

But this isn’t the way it always was.

Once upon a time, people banded together around common causes. Those who work in social good often pine for “the good old days” of the Greatest Generation — the people who came of age during the Great Depression and World War II. It was a generation of great empathy and is widely considered the most generous generation in modern times. Much of fundraising methodology was created with the Greatest Generation as its muse.

The Greatest Generation “walked the walk” on sacrifice. During World War II, the federal government instituted a rationing system for basic materials like food, shoes, metal, paper and rubber. All citizens, rich and poor alike, were issued ration books with stamps that could be traded for goods many of us today take for granted.

Can you imagine that level of sacrifice today? During the recent pandemic, many of our neighbors demonstrated a marked inability to work cohesively or take the actions necessary to further the common good.

Leadership is galvanized not in what we are against, but in what we are for. And when it comes to meeting the needs of people directly impacted by social and economic inequity, we too often send a message that our commitment “depends.” 

A Season for Reflection 

As we sit here today, mid-August 2024, there are many factors contributing to fence-sitting by those we depend on most for leadership.

We are in the midst of a political season in the United States unlike any other in modern times, with shifting narratives sowing disruption and confusion. I’ve seen leaders’ confident predictions about the country’s future proven inaccurate, causing all their planned next steps to grind to an unexpected halt. That’s why election seasons in particular trigger too many leaders to adopt wait-and-see practices.

But it’s not just political uncertainty that invokes pause among social good leaders. The status of the economy is evoked almost as often as the reason ambitious — and much-needed — social good strategies get stalled. But the potential for an economic recession has been a bogeyman for years, with a belief that the 8% inflation in 2022 would eventually lead to a market correction.

Another factor that causes some leaders to stay flat-footed is public perception. With concern for how supposed “wokeness” can be interpreted by others, previous commitments to diversity, equity, inclusion and belonging efforts are being quietly sidelined.

It’s against this backdrop that many institutions are considering how best to meet the needs of the people their missions call them to serve. Perhaps that includes you.

How will you lead at this critical inflection point?

Building a Culture of Leadership

I’ve never been more convinced of the importance of leadership. As someone who prides himself on strategy built from quantitative and qualitative research, I can say without any hint of irony that understanding a trendline is only as useful as the action it informs. And getting actionable is the only way to make progress. 

Fostering a culture of leadership within your organization requires embracing practices that inspire proactive engagement and accountability. 

A few methods to building and sustaining a culture of leadership that don’t succumb to the temptation of “wait and see” include the following:

  • Adopt a commitment to Community Voice. One of the most powerful ways to ensure your organization is moving in the right direction is to prioritize the voices of those most affected by your decisions. Data and financial forecasts are crucial, but they often fail to capture the lived experiences of the communities you serve. By integrating community feedback into your decision-making process, you can create effective strategies that resonate with the needs and aspirations of those you aim to support. This approach not only fosters trust but also empowers the community, including your frontline employees, to become active participants in your mission. To learn more about how to implement a feedback process in your organization, register for our free community voice webinar on August 29.
  • Embrace measured risk-taking. Leadership is often about stepping into the unknown and making bold decisions in the face of uncertainty. That doesn’t suggest moving with reckless abandon but rather calls for a calculated approach. Measured risk-taking is about understanding the balance between caution and courage, risk and reward, and moving forward with confidence when the benefits outweigh the risks. By encouraging a culture where thoughtful risks are valued, you empower your team to innovate and drive your mission forward, even in the face of uncertain times.
  • Create accountability for inaction. Inaction can be as consequential as action, yet it often goes unexamined. Establishing a system of accountability that revisits decisions not to act is crucial for future improvement. By regularly assessing the outcomes of inaction, whether they’re missed opportunities or successfully avoided pitfalls, your organization can learn and adapt. This practice not only prevents complacency but also ensures that every decision, including the choice to wait, is made with full awareness of its potential consequences. Leaders who hold themselves and their teams accountable for inaction demonstrate a commitment to progress and a refusal to let fear dictate their strategy.

In leading your organization or department forward, it’s important to remember that leadership is not just about making decisions — it’s about making the right decisions at the right time with the right people in mind. By adopting these principles, your organization can move beyond the paralyzing effects of “wait and see” toward a future of intentional, impactful action.

My colleague Helen Hope Kimbrough reminded me recently of a seminal quote from one of America’s great leaders, Martin Luther King Jr.:

“Take the first step in faith. You don’t have to see the whole staircase, just take the first step.”

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Is your organization at an inflection point? Need help figuring out your next steps? Reach out today to set up a consultation, and check out our website for more information. 

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Next Stage CEO Josh Jacobson launched Next Stage as a social enterprise in 2014, bridging his professional experiences as a nonprofit practitioner with his consulting expertise. He has led Next Stage’s work with 200+ clients, including nonprofits, private-sector companies, municipalities, faith institutions, philanthropies and community-based organizations. Josh’s skills in strategic positioning and tactical design help clients achieve their goals. He guides Next Stage’s work in strategic planning and collaboration management and is a major contributor to the company’s thought leadership efforts.

Navigating the New Realities of Corporate Social Responsibility

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On August 22, I will present a session at the AFP NC Philanthropy Conference on one of my favorite topics: corporate social responsibility. The session will continue a decade-long series of talks I’ve given at this annual conference.

Our company has done a significant amount of research on this topic, which informed the launch of our corporate impact services line. Now, Next Stage works with multiple private-sector companies to realize compelling public-private partnerships. It’s some of the most innovative and game-changing work our company has done.

Helping nonprofit organizations understand what has changed about corporate social responsibility requires near-constant updating because so much has changed — and continues to change — so quickly, which is why we’ve found it important to share our latest findings regularly.

Alignment to Materiality

As we previously shared in our 2023 report, Profit & Purpose: The ESG Addendum, the speed with which corporate social responsibility has been evolving has accelerated in recent years. A more sophisticated methodology for social impact efforts has replaced the shotgun approach of previous decades. “Spreading it around” has given way to something more strategic. 

That approach is part of what I’ll unpack in greater depth at the conference next month. Companies are focusing their impact efforts on areas of greater alignment to their work, often to mitigate unintended negative consequences of their operations. This concept, for companies to choose social issues aligned to their business processes, is called materiality. For example, a residential home builder is likely to focus on social impact efforts related to affordable housing, while a lending institution may work to create more racially equitable access to capital. 

If you’re curious about what a company considers its materiality, take a look at its ESG report. Delta Airlines’ report, for example, suggests that climate change is an area of particular focus — not surprising given that the aviation industry is responsible for 2–3% of total carbon emissions annually. A deeper dive into the report reveals that education and equity are also key areas of focus, with the need for a future STEM-based workforce critical to the company’s future success. 

Metric-Based Goal-Setting

One way the private sector and nonprofits have come closer together in recent years is how they are evaluated. Like the nonprofits they have granted funding to for years, companies are now compiling their impact data and making it available to third-party reviewers for assessment. Why? Because future backing from socially conscious investors hinges on how those outcomes stack up against others in their industry. 

The Lowe’s Foundation Gable Grant program is a $50 million, 5-year program to train 50,000 job-ready skilled tradespeople. Beyond the stated financial commitment and multiyear design, the effort is also carving out a specific and measurable goal of 50,000 people served. The grantmaking strategy includes investing in national-level nonprofits, technical and community colleges, and community-based organizations nationwide, recognizing the importance of working at macro and micro levels to affect change. It’s an advanced approach to grantmaking that was not very common in the past. (Disclosure: Next Stage is helping the Lowe’s Foundation to implement this innovative initiative).

Commitment to Research

The history of corporate social responsibility is one without much grounding in research. Companies often decided to support issue areas based on internal decision-making, and organizations were selected as much on their social capital (e.g., board connections to corporate executives) as on the merits of their programming. That framework has largely disappeared, with far more evidence-based approaches to grantmaking becoming more of the norm. 

The PNC Foundation was ahead of the curve when it launched its Grow Up Great initiative — an effort to prepare children from birth through age 5 for success in school and life — in 2004. As the PNC Foundation celebrates its 20th anniversary this year, it’s positioning its grantmaking against the backdrop of research that indicates an area where its impact can be particularly effective. PNC-funded research, in partnership with the National Institute for Early Education Research, is helping to reframe the need for more nature-based play and learning environments.

Leveraging Grantee Connectivity

One area where Next Stage has been pioneering new social impact efforts is in the development of digital communities of practice for corporate foundations seeking to better harness their portfolios of investees. Companies have changed how they treat the nonprofits and agencies they support, from seeing them as charitable investments to vendors of corporate-aligned social impact. As such, realizing stronger outcomes collectively is a top priority.

Next Stage has developed an approach to building social cohesion among grantee organizations that increases the potential for collaboration. Working together, grantees convened by a single corporate grantmaker may be able to realize more impact than when working in isolation. 

Next Stage uses a digital collaboration management platform called Cultivate Impact ® to unite grantee organizations, often through the lens of professional development and organizational strengthening. We have built a curriculum to support grantee learning communities that leads to stronger relationships, deeper trust and increased impact.

Want to learn more? Feel free to get in touch! We’d welcome the opportunity to discuss our approach further.