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There is a plurality of definitions of the term systems change, each contextualized within different cultures and purposes. Doing Good Better embraces systems change as an inter-sector process that addresses complex social problems nonprofits and funders confront with collective action centered on equity, mutual respect, and resilience. Systems change refers to changing the parts and their relationships within a system with the understanding that this change will have ripple effects. As grantmakers, we need to create an environment that enables grantee effectiveness, so they can deliver on their mission. Systems change in philanthropy focuses on structures, policies and processes, resources, values, power, mindsets and, infrastructure that is illustrated in three iterative phases. In time, we hope that the application of this model will result in collective impact and a more resilient social sector for all of New Jersey.

The first phase is structural (operational) change, which involves funders adopting new policies, practices, and resource flows. The second phase is characterized by new relationships and connections that emerge from structural change eschewing old power dynamic practices. Finally, the third phase is transformative change, which occurs when change becomes rooted in organizational culture and mores. We cannot underestimate the length of time and learning at each stage. Achieving transformative change can be a long journey, but it is a learning journey. One grantmaker stated, “One change led to another and another, like dominos. I started to see what people meant by systemic change. New energy and excitement surged among us as hope grew and the cloudy vision of what we wanted became clearer and clearer.”

Although the figure below displays the six developmental stages as linear and distinct, change is unlikely to follow a linear path. Any change in a system will seldom stay fixed at one of these stages but rather will shift back and forth from one stage to another on the path toward the ideal state. We believe just one organization can’t shift the conditions that hold problems in place; we all must share the same perspectives and move the sector together and simultaneously. We call for all of those involved in the sector to work together to build a better and more equitable nonprofit and philanthropy system for all New Jerseyans.

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       Graphic comes from “The Water of Systems Change” by John Kania, Mark Kramer, and Peter Senge.

Doing Good Better, a partnership of the Council of New Jersey Grantmakers and the New Jersey Center for Nonprofits, is a community of funders and nonprofits taking action against the power imbalances and racial inequities in philanthropy, nonprofits, and government.

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Right Size Applications; Simplify Reporting

Affirmation: Paperwork hinders us all.

Duplicative or complex proposal and reporting requirements divert time and resources for both nonprofits and philanthropy, needlessly burdens nonprofit partners and siphons scarce resources away from where they are most needed. Funders can lessen the burden on grantee partners by streamlining the application and reporting processes, especially for repeat grantee partners; decreasing the required data to only the most necessary for decision-making; taking on some of the burden of data collection by gathering data from central repositories such as Candid (formerly GuideStar) and the IRS; and retain and use data already collected from repeat grantees. Funders should require updated information such as annual budget, staffing, board member changes, etc., in their grant applications only when the nonprofit is the only source for this information. Collaborate with other local funders and agree to common GOS application questions and budget templates; streamline tools through technology and offer innovative ways for organizations to apply for and report out on grants; limit written requirements to information that is relevant to the request, and which moves the needle on critical social issues.

Activities
• Reduce rigidity and increase the flexibility of what nonprofits must submit for their applications in creative, egalitarian, and less burdensome ways.
• All funders right-size their application and report requirements relative to the grant amount.
• Shift from reports to conversations or other lower time-intensive means.
• Develop agreed-upon common questions for use across the philanthropy sector for general operating support grant applications.
• Explore the efficacy of using common applications for general operating support grants.
• Change site visits for compliance to goals of learning.
• Consider developing a central data repository for New Jersey nonprofits and funders, where applicants can submit and update basic information once a year, and funders can access the necessary information.

Outcomes
• 75% of funders begin to reduce the size of applications and reports relative to the size of the grant.
• 75% of funders shift from reports to conversations or other lower time-intensive means, like site visits geared to learning and relationship building.
• 50% of funders making general operating support grants accept creative, egalitarian, less burdensome applications including other funders proposals.
• Nonprofits have increased capacity to dedicate time to other activities and efforts.

How to Begin Doing Good Better on Reducing Burden

Learning opportunities
• For funders who do not right-size their applications, what are the barriers to reducing paperwork?
• Who is making the decisions about the application and reporting requirements, and how can they be reached to encourage change? How can we involve more board members of funders in this effort?
• For funders who require reports, determine what is “nice to have” vs. what is needed and used and consider eliminating the rest; what are expeditious ways to collect data including accepting other funders’ reports?
• Which funders who make multi-year grants require a full application for the first year and updates for subsequent years?

Pre-Work
• For funders who already report tailoring their applications, consider how to further simplify processes for grantees; share these practices with other colleagues in philanthropy.
• Learn how information is collected without burdening the applicant.
• Review and implement recommendations already provided by nonprofit networks and philanthropy-serving organizations for concrete examples such as centralized document repositories; allowing nonprofit partners to re-use other proposals and reports; holding check-in meetings in lieu of written reports; and other helpful practices.
• Seek promising practices of funders who use site visits as opportunities to build trust and understand the programs and organizations they support instead of as compliance reviews.

Notes:
See, for example, SMU DataArts (formerly the Cultural Data Project), https://culturaldata.org, a nationwide research and data repository for the arts and cultural community. DataArts serves as a collector and clearinghouse for a wide array of data, which funders can access instead of requiring nonprofits to provide it separately.

Joint Statement from CNJG and the Center for Non-Profits

This statement also appeared on NJ Spotlight.

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A conversation between two customers in line at a New Jersey supermarket turned ugly when one man denigrated the other with a racial slur and blamed the fellow shopper for the coronavirus pandemic.

With so much else going on these days, it would be so easy to react to such a seemingly minor incident by saying, oh well, these things happen. Times are tough; tempers are short.

But shrugging our shoulders is not an option. Doing so is complicity in a wrongful acts that too often are repeated, over and over. Our silence merely emboldens those who would tear apart the fabric of our society, whether through hate or ignorance – or the extremely volatile mix of the two.

It’s not difficult to connect the dots between “little” incidents and the systemic racism that leads to tragedies like the killing of George Floyd in Minneapolis. When we ignore or accept any examples of people being demeaned over what they look like or where they (or their ancestors) came from, we only open the door for massive abuses and the wrenching reckoning that follows them.

We mustn’t be cowed by fear of being seen as overly sensitive or labeled “politically correct.” This is about being morally and ethically correct in the face of bias and hatred – and that shouldn’t be too much to ask of Americans, regardless of their political party or ideology.

As state Attorney General Gurbir Grewal said recently, “COVID-19 is no excuse for racism, xenophobia, or hate. Discrimination and harassment in violation of New Jersey law remains illegal even if it occurs against the backdrop of a global pandemic." It’s gratifying to live in a state where the top law enforcement officer speaks out this way.

Unfortunately, it also is a state where reported hate crimes are up in recent years. We can’t tolerate such behavior, whether by police, elected officials or “average people.” There is too much at stake for bias to become the new normal.

As the leaders of the major philanthropic and non-profit membership organizations in New Jersey, representing both the wide range of non-profit groups and the multi-faceted funders of those groups, we feel compelled to speak out against the hateful responses we and our members have witnessed in reaction to the COVID-19 Pandemic.

Our country has seen countless examples of selfless sacrifice and good works over the past weeks, both on individual and institutional levels. We are proud that the members our organizations have been leaders in responding to the needs of our community.

But to our distress, some individuals are using the pandemic to put forward their bias and hatred toward their fellow citizens.

Times of crisis bring to the surface, on the part of some people, the need to scapegoat. Often, this takes the form of lashing out at particular groups, stirred up by inflamed rhetoric or more subtle code words or phrases, having no relationship to facts. In this time, there have been verbal and physical attacks against people of Asian and Pacific Islander background, as there were against Muslims after September 11 and against African-Americans and Latinos in countless other instances. This hatred and these attacks must stop.

The non-profit sector is the backbone of our communities, providing assistance and education to a wide range of people, in good times and especially in challenging times. Many of these services are a lifeline to people of all backgrounds, religions, ethnicities and statuses in life.

Non-profit organizations are the vehicle through which people can work together to selflessly assist others. People around the world view the United States as being unique in the breadth and depth of its charitable and philanthropic work, engaging the talents of all individuals, regardless of their economic or social status.

We call upon all people of good conscience in their good work to be alert for hateful words and actions and – always -- to speak out against them, both as individuals and as organizations.

Our language and our actions do matter.

Everyone, and especially people in positions of public trust or prominence, has the obligation to use our works and our lives to assist all in need and to honor the dignity and potential of all those we meet.

We call on not only our own members, but everyone who serves and volunteers in our sector to join us in this effort to speak out against racism and hatred and to exemplify all the best that we know our country is.

Maria Vizcarrondo
CNJG CEO and President

Linda Czipo
Center for Non-Profits CEO and President

William V. Engel
CNJG Board Chair

Gina M. Plotino
Center for Non-Profits Board Chair

CNJG's Storify content from their Signature Events.