It’s human nature to be adverse to risk-taking. But like successful business people, many social entrepreneurs believe you have to be willing to take risks to achieve progress.

A widely read example of risk and reward in philanthropy is the story of Greg Mortenson and his painstaking journey to build schools in Pakistan and Afghanistan in the New York Times bestselling Three Cups of Tea. With a typewriter Mortenson wrote 580 appeal letters to potential donors and 16 grant applications in an attempt to raise $12,000, the minimum he needed to fulfill a promise and build a school in a remote alpine village in Pakistan. While his appeals were largely a failure, the difference came with one individual who read a newsletter article about Mortensen’s personal mission, took a risk, and moved fast - agreeing to fully fund the school. Dr. Jean Hoerni made the decision to fund the project after one phone call and Mortenson’s word that he would “not to screw up.”

In the San Francisco Bay Area, another philanthropist embraces the idea of risk-taking in grantmaking. In a new book, Bill Somerville, president of the Bay Area Philanthropic Ventures Foundation (PVF), makes the case that grantmakers should take risks to reap the highest rewards for their investments. Somerville recounts several stories of how a little risk went along way in transforming individual lives and communities – from juvenile courts to classrooms. Published by Berkeley-based Heyday Books, his new book with Fred Setterberg is titled “Grassroots Philanthropy, Field Notes of a Maverick Grantmaker.”

In Grassroots Philanthropy Somerville advocates that grantmakers should find and fund outstanding people, eliminate bureaucracy in favor of moving quickly, focus on ideas and not problems and take risk and initiative. While Somerville’s approach to grantmaking may not be for every foundation, it makes sense for the grassroots as the book title implies. By definition, grassroots movements move quickly and are driven by effective leaders doing hands-on work at the community level. Many of these individuals cannot afford to get bogged down in time-consuming and costly application processes.

In the case of Mortenson’s plight to build schools, a donor’s risk-taking led to the formation of the Central Asia Institute, which has now established 64 schools in remote and underserved regions of Pakistan and Afghanistan. The remote schools have educated over 25,000 children and have provided unprecedented opportunities for girls.

For Somerville and the Philanthropic Ventures Foundation 17 years of nonconformist approaches to grassroots grantmaking has attracted several prominent California foundations as supporters including The California Endowment, David & Lucile Packard Foundation, Flora Family Foundation, Herbst Foundation, and the San Francisco Foundation, among others.

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I just received the March/April 2008 issue of the Grassroots Fundraising Journal, which is dedicated to the topic of fundraising databases. This is a particularly good topic for small community-based nonprofits because databases are more commonly used by organizations with larger budgets and staff capacity. Some nonprofits resist databases because staff are not accustomed to using them. Others do not have the time or resources required to find the right solution and implement new tools through training. Yet once these hurdles are cleared, then an organization could be on course to increasing support and tracking impacts. Databases are tools that facilitate communications and connections with supporters and potential donors.

In the for-profit world businesses use CRM databases - Customer Relationship Management - to track marketing campaigns, leads, and sales. Nonprofits raising money and working with volunteers need the same tool to effectively manage and build relationships with constituents - individual donors, foundations, volunteers, sponsors, and other supporters. Now online resources are out there to make it possible for small nonprofits to take advantage of these tools. To make an informed decision about hard costs (equipment or software) and people costs (time to assess and implement), here are a few resources:

Idealware: The article “A Few Good Tools: Low Cost Constituent Databases” provides product comparisons and considerations.

TechSoup.org: Several good articles here on planning and selecting a database.

The San Francisco Bay Area Non Profits Salesforce.com user group: Salesforce Foundation donates 10 product licenses to eligible 501(c)(3) organizations, and a nonprofit-specific CRM is available.

Network for Good: Articles and research on donor databases.

Community Technology Network of the Bay Area: Articles on on technology planning useful for assessing costs and how to project manage a solution.

N-Power: Resources and articles such as how to select a technology vendor and manage a technology project.

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On June 23, 2007, the Foundation for Self Reliance presented a symposium called “East Meets West: Awakening to the Challenges of Afghans in Fremont” that turned into a monumental event. Over two hundred guests gathered at The Golden Peacock restaurant in Fremont to hear panels in both Farsi and English including a keynote by Dr. Mo Qayoumi, a speech by Rona Popal of the Afghan Coalition and Afghan Women’s Association International, and presentations by Dr. Ronald Takaki on “Multiculturalism in America,” Dr. Hatem Bazian on “Islam in America,” Professor Ghafar Safa on “Violence and Reform in Afghanistan,” Tamim Ansari on “Biculturality: Understanding The Other’” and Fremont Councilmember Anu Natarajan on “Diversity and Public Policy.” Fremont is home to the largest community of Afghan immigrants in the U.S.

The Foundation for Self-Reliance and their community partners, the Afghan Coalition, are already planning a sequel event at the Golden Peacock on Saturday, January 19, 2008.

Press Coverage:

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On May 22, 2007 Van Jones, President and Founder of the Oakland-based Ella Baker Center, testified in Washington D.C. at a special hearing called, “Economic Impacts of Global Warming: Green Collar Jobs.” He was there to push Congress to make “clean energy jobs” and “green-collar job training” for urban youth and low income communities a top priority.

He reported back on his trip to Washington in the Ella Baker Center blog, Grist Magazine, and the Huffington Post.

Jones defines a “green collar” job as a “vocational job in an ecologically responsible trade.” With the increasing demand for alternative energy sources such as solar panels, waste reduction, materials re-use and recycling, and sustainable agriculture, skills in these trades will give unprecedented opportunities to low income communities - if training programs are designed and delivered effectively.

At the hearing, Congresswoman Hilda L. Solis (CA-32), a Member of the Select Committee on Energy Independence and Global Warming and the House Energy and Commerce Committee, delivered a statement called, “Green Jobs Will Create Pathways Out of Poverty.” Congresswoman Solis is currently building support for federal funding of “green collar job training” programs, which would help give low income communities access to the skills they will need to compete in the new green economy.

According to Jones, The Ella Baker Center initially introduced the concept of green collar job training as a pathway out of poverty to Speaker Nancy Pelosi earlier this year, which led to the beginnings of legislative language by Congresswoman Solis. The Center is expecting the proposal to be a part of the historic U.S. energy package, to be introduced on July Fourth (”Energy Independence Day“).

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