A Chat With Marta Ferro About How 2020 Transformed the Nonprofit Sector

Marta Ferro is the founder of Starfish Impact, a partner at Social Venture Partners, a managing director at Angeles Investments, and co-founder of Angeles Art Fund. With her extensive experience in both the nonprofit and private sectors, she is one of the most insightful voices to help us navigate this tumultuous but exciting time for nonprofits and grantors. We recently sat down with her to get her take on philanthropy and what she thinks will shift in 2021, if anything.

Resilia: How will the renewed conversation about racial equality in the United States affect programs and grantor behavior?

Marta Ferro: Grantors and nonprofits are increasingly recognizing that they have to approach big issues like education, healthcare, and racial inequality holistically, as there are many overlapping causes and consequences. Even if on the surface organizations aren’t explicitly focused on social justice, that’s what they’re doing. Communication and collaboration have always been important, but they’ve moved to the forefront this year. Collective action leads to collective impact.

While it’s crucial to be cognizant of the fact that racial inequality in today’s United States has been centuries in the making, it’s great to see organizations that are focused on the systemic causes of racial injustice receiving more support.

Resilia: What do you expect from grantors in 2021? In particular, what will they demand from nonprofits in terms of accountability, communication, and other performance indicators?

Marta Ferro: Nonprofits should ask themselves: what’s the story through outcomes and data? In the last ten years, grantors have become more and more sophisticated in tracking and defining impact. This is why it’s important to have a clear-cut plan that you can tell a story around and use data to support existing growth and successes.

To address foundational issues like inequality, it’s often necessary for communities to receive multiple services through multiple partners. When several grantors take part in a project, it’s easier to get their peers to come along behind them. This is how a number of small but mighty organizations are getting huge legislative and advocacy-related wins – everyone is in the work together. That’s why there are many foundations and organizations partnering up with one another, particularly when it comes to issues like racial justice.

Grantors are also getting more sensitive to the perception of how they’re intervening – it’s important to remember that, when it comes to programs, organizations on the ground are the experts. Grantors should pursue robust due diligence, but when the trust is there, don’t overstep.

Resilia: What role does technology play in attracting and maintaining grantor support?

Marta Ferro: It’s instrumental because it’s how we communicate and stay on top of the work for efficiency’s sake. Technology is necessary to be transparent, to collect and analyze data, and to create reports and storytelling – every aspect of collaboration.

Resilia: How has the private sector been interacting with nonprofits?

Marta Ferro: For-profit companies are figuring out ways through CSR programs to become more engaged in their communities – some develop stand-alone programs, but they’re typically partnering with entities and organizations that are serving those causes in the community. It’s important for nonprofits to develop processes for soliciting and making use of private sector support.

Resilia: How can grantors and nonprofits improve their relationships in 2021?

Marta Ferro: It’s crucial for nonprofits and grantors to be upfront with one another at the beginning of the relationship. Grantors should ask detailed questions and listen. They should reward organizations for being open and transparent, warts and all, versus building a culture and a relationship that makes nonprofits feel like they have to be perfect. There’s this movement to get real around the real costs nonprofits need to spend to properly run their organizations. Nonprofits need to be trained at understanding internal financial work – consultants and tools that you can use as a nonprofit to get up to speed and do it properly. The more sophisticated and empathetic grantors are looking to have these conversations.