posted on: Monday, March 22, 2010

By: Christine Reeves

Barring a lucky night in Las Vegas, or an investment in some overnight-miracle stock, could you turn $1 into $157? Of course you could. It only requires the logic to support nonprofit advocacy and organizing. As evidenced by the National Committee for Responsive Philanthropy’s research, this is precisely how a sample of New Mexico nonprofits earned an astronomical 157 percent return for their communities. Subsequently, NCRP revealed that North Carolina, Minnesota, and Los Angeles nonprofits’ advocacy and organizing yielded a striking 89 percent, 138 percent, and 91 percent return on investment, respectively. I challenge even the luckiest poker player or veteran day trader to duplicate and sustain that kind of success. So, nonprofits know what works—advocacy. Now, they need what advocacy requires—more initial funding. Enter philanthropy…

Last week, the National Community Reinvestment Coalition held its 20th Annual Conference in Washington, D.C. NCRC is an association of over 600 community-based organizations that help people acquire the basic needs of fair banking services, job development and affordable housing. This year, the bank bailouts, job market freefall and housing calamity fueled the discussion and dismay of the conference attendees. The trio of catastrophes also reinforced the nonprofit participants’ commitment to seek funding for advocacy and organizing.

According to the Center for Responsive Politics, “Finance, Insurance, and Real Estate” once again emerged with a dubious distinction: the industry with the greatest annual lobbying expenditure. They spent a massive $3.92 billion to ensure their own protection. Imagine what $3.92 billion—or even $3.92 million—could do for so many of their clients, who lost their savings, homes, health insurance, livelihoods and abilities to afford both prescription medications and adequate food and shelter for their families.

Corporations know public policy can be a zero-sum game: when one group gains, another loses. Yet, even though corporations are winning this game right now, they don’t have a monopoly on it. Everyone can advocate and organize for their rights. However, unemployed, underemployed, indebted, and foreclosed upon victims of corporate greed cannot spare a $3.92 billion megaphone to voice their concerns. Therefore, these Americans rely on sage nonprofit professionals, who encourage policymakers to value the struggles of hard-working Americans over the influence of corporations—an uphill challenge made even harder in wake of the U.S. Supreme Court’s Citizens United decision.

This is where philanthropy must heed the call and help level the precipitous playing field. Grantmakers’ funding catalyzes 157 percent returns on investments for communities in need. Plus, supporting nonprofit advocacy and organizing aligns with grantmakers’ collective goal: spread and sustain positive change.

At the end of the day, the law of averages will always stipulate that risk comes with every grant project; some succeed, some fail, and most fall somewhere in the middle. However, funding strong grant proposals that include advocacy and organizing mitigate the risk of failure. I supposed the title of this blog is misleading: Luck isn’t an advocate; it’s what grantmakers need when they don’t invest in an advocate.

Christine Reeves is field assistant at the National Committee for Responsive Philanthropy (NCRP).

Photo credit: Graur Razvan/graur_razvan_ionut/Freedigitalphotos.net