Philanthropy in Motion and the Restaurant Industry Amid COVID-19

The COVID-19 outbreak is wreaking havoc on so many aspects of our economy both nationally and abroad. But one area in which I am seeing a ray of hope is within the restaurant Industry. According to the National Restaurant Association it was anticipated, prior to the pandemic, restaurants nationwide would record $899 billion in sales and employ 15.6 million people in 2020. To bring these numbers a little closer to home, last year in Texas 10% of the state’s employment was in restaurant and food service with some 1,344,200 jobs. Further, every dollar spent at a sit-down restaurant contributed $2.02 to the Texas economy and every dollar spent at a limited service site, such as drive-thru business contributed $1.77 to the Texas economy - nothing to sneeze at.

Given the significance of the restaurant industry to Texas and America’s economies and given the vast majority of jobs within the industry are filled by hourly workers, I am heartened to see philanthropy and innovation intersect in a way to help restaurant workers survive the downturn and to feed others in our communities who are struggling.

This past week I have been collecting examples of what I am calling “philanthropy in motion.” See what you think. Is there a place where you own giving might intersect?

Cafe Momentum E.A.T.s was launched at the same time Dallas began recognizing the impact of COVID-19 in North Texas. Cafe Momentum transformed its restaurant space into a temporary food hub and their interns began putting together meal packs for low-income families. The idea is to build 1,000 kits a week with each kit providing four dinners for a family of four. The effort is supported by the Get Shift Done Fund at the Communities Foundation of Texas. Dollars from this fund pay the interns while Cafe Momentum is seeking donations to to cover food and other costs.

Get Shift Done connects hospitality workers with nonprofits providing hunger relief throughout North Texas including food banks, pantries, and Momentum E.A.T.s. Donated dollars provide wages to hourly workers to fill shifts at $10/hour. Further, the Get Shift Done team is leveraging the Shiftsmart platform to onboard, train, schedule, dispatch, route, and pay assigned workers. Here is a March 29 article in the Dallas Morning News on this work.

Former Dallas Cowboy, Travis Frederick is raising funds to feed families. Ensuring people have food is a cause he has been passionate about for years and is the reason he established the Blocking Out Hunger Foundation. Through the foundation, funds are being raised to provide food to families in low-income neighborhoods during this crisis.

The Furlough Kitchen opened March 25. It is run by Front Burner Group Dining in collaboration with CitySquare and is providing a free meal daily to anyone in the hospitality industry who has been furloughed.

Pecan Lodge is remembering its roots and struggles during the 2008 recession by establishing the Dinner Bell as a nonprofit with two purposes: 1. feed those working on the front lines of the pandemic including healthcare workers, first responders, and their families and 2. raise donations to provide bridge funding to independent, local restaurants so they can participate in Dinner Bell. These dollars are designed to keep qualifying restaurants afloat so they can pay staff and purchase supplies to create meals for Dinner Bell.

This March 25 article in the Dallas Observer offers other examples of philanthropy in motion within the restaurant industry including deferred rent for some restaurants and distributing free boxed meals to those directly impacted by the pandemic.

Let’s keep this positive response moving forward.

What Grantmakers Can Do to Help Nonprofits Thrive

Are there simple, creative solutions grantmakers can and should incorporate to strengthen nonprofits?

In a word…yes.

I see this sentiment gaining traction within the philanthropic arena. In Phil Buchanan’s latest book, Giving Done Right: Effective Philanthropy and Making Every Dollar Count, Buchanan interviewed nonprofit leaders from across the country. What those interviews revealed should come as no surprise …drum roll, please…

One of the greatest challenges nonprofits face is recruiting and retaining quality staff.

Through his conversations, Buchanan found many nonprofit leaders not only have vision and passion for their work, but also employ tremendous management skills. In his April 2, 2019 Opinion piece for the Chronicle of Philanthropy Buchanan states, “To spend time with these leaders is to recognize the utter fallacy of the caricatures of nonprofits that they are undisciplined, that their leaders couldn’t make it in business, or that the work is somehow easier than in for-profit organizations.” “Wrong, wrong, and wrong again.”

Over my 20 years in the funding world I am slowly but surely seeing change in the tried and true funding methods of requests in the door and dollars out. I am seeing funders who are actively involved in setting strategy for their work, finding ways to partner with nonprofits, and finding ways to partner with each other.

My theory is that In order to effect change the entire philanthropic community must work together and this work starts with inviting nonprofit partners to the table and giving them an equal voice. I also believe it is time for funders to open their eyes to the true cost of providing services including that dreaded word…overhead. In return, agencies must take the time to understand all that it takes cost wise to run their agencies and be up front with funders, without fear of push back .

Buchanan offers three simple solutions funders can employ:

1. Have conversations with nonprofits regarding employee salaries and benefits. Are agencies aware of benchmarks? Do they know the dollar figures it will take to reach and maintain those levels? Are they aware of the true costs of operating the nonprofit? Are they willing to share those figures? Are funders willing to listen? Are funders wiling to support staffing and operational costs?

2. Give general operating grants to organizations with budgets under $3 million. How about making it foundation policy that for every project grant awarded, the agency will receive the same amount for general operating support?

3. What about foundations flipping the model so that multi-year support is the default with one-year grants requiring special justification?

What do you think? Do you agree? Do you disagree? As a nonprofit, are you experiencing any changes in the traditional funding model? As a funder, are you having these discussions within your board and staff?

Let’s start the conversation….

Time to Reboot Grantmaking

Good food for thought for funders. This article originally appeared on the Stanford Social Innovation Review website, June 27, 2017. As funders, are we asking our nonprofit partners the true cost of running the organization? Are we willing to accept the numbers they produce? Are we willing to fund operational capacity building? Are we willing to shift our mindset from program dollars to operational dollars that support strong programatic work? Are we willing to have these conversations?

Which Comes First? Procrastination or Fear?

Laura Duty with Jessica Dunn, VP of Philanthropy, the LiftFund.

Oh the joys of resolutions. One of mine for the New Year was to publish a regular blog on topics relevant to nonprofits and funders. While having lunch with a colleague, I was lamenting my procrastination. Her advice, “simply start.” Just because the first post isn’t in January doesn’t mean the effort is blown for the whole year. Jessica, at last I am heeding your advice!

I also got to thinking about the root causes behind my foot dragging and realized I can point my procrastination to one word…fear. Fear that a post would simply be one more thing to land in the inbox. Fear that a post would not have relevance. Fear that a post would be meaningless. And yes, fear of rejection.

Then I realized one of the reasons I am in the business of working with nonprofit leaders and with funders is to help them overcome the very thing holding me back…fear. Publishing a regular blog is part of a strategy I developed to advance my consulting work. Based on marketing research and conversations, I realize these communications are key. 

Because I had already missed early deliverables, I found my plan collecting dust as it sat on a shelf. It took talking with a colleague to put me on the path of actively working my business strategy.

Does this mindset sound familiar? Do you have ideas for strengthening your organization that may seem far-fetched? Do you have designs for developing strategies that are aligned throughout your organization from program to operating staff to the board? Are you looking for a neutral and confidential sounding board to toss ideas? 

Coaches, consultants, mentors, and peers offer a safe space as you navigate the twists and turns of your work. Just as my colleague helped me I am here for you to listen, offer insights, connect you with resources, and support you as you overcome your own fears of walking down new paths. Let’s get started…

Thinking Creatively/Differently About Grant Agreements

As we start thinking about the New Year could funders also start thinking about ways to engage with nonprofit partners outside of grantmaking? The Crimsonbridge Foundation in Bethesda, MD actively promotes their community partners throughout the grant year via their website, blog posts, social media, and other platforms. The foundation’s grant agreement asks partners to supply photos, stories, and content - something not typically required in standard grant agreements. READ HOW these partnerships work (courtesy of Exponent Philanthropy).