SDSVP Investee Emeritus - Human Development Foundation’s Open Gate

Grooming the Young, Gifted and Disadvantaged

From Voice of San Diego
March 29, 2009

Brandon Tamariz was once deemed a problem student. He cried and screamed before going to school, racked up bad grades, and complained that other children called him "un tonto" -- a fool. His mother, Norma Perez, worried that he might have a learning disability. It turned out he was highly gifted….The story might have ended there had it not been for an unusual program called Open Gate, which aims to chip away at the underrepresentation of students from disadvantaged families in programs for gifted youth.

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How Venture Philanthropy is Making Non-Profits More Accountable

From the San Diego Daily Transcript
1/19/2006

By Richard Bockoff and Barbara Bry

Throughout his successful business career, entrepreneur Alan Sorkin had a long history of involvement with numerous charitable organizations. Yet, he was frustrated because he wanted a higher level of personal participation. He also noticed that many organizations operated without accountability for their promised social results. So in 2001 Alan and his wife, Louarn, became founding members of San Diego Social Venture Partners (SDSVP), part of a national trend of what is being called venture philanthropy.

Venture philanthropists consider themselves "activist" investors, not "passive" donors. These venture funders look for both a social return on their investment (SROI) and a high level of engagement with the causes they fund. The investors require the establishment of a sustainable business model with fixed measurable milestones. Moreover, these activist investors leverage their financial contribution by providing additional value through assistance with strategic planning, marketing, board development and the development of appropriate business systems.

Although venture philanthropy is only a small part of national giving, it has received a lot of publicity, and other donors, including foundations and corporations, are asking tougher questions and demanding more rigorous, verifiable outcomes from the causes they support. Venture philanthropy started in Silicon Valley in the 1990s as venture capitalists and entrepreneurs wanted to apply business principles to social problem solving. Entrepreneurs particularly understood the importance of building a solid management team just as they had done in the companies they had started.

Entrepreneurs Darcy Bingham and Carrie Stone brought the movement to San Diego, and the local Social Venture Partner group now has 70 members, primarily couples, who contribute $5,000 per couple per year.

Through SDSVP the Sorkins became involved with the Human Development Foundation (HDF), one of the charitable organizations SDSVP supports. Alan feels this charitable organization is a good example of opportunities that came to fruition with SDSVP's input. HDF's goal is to help gifted children from low-income families achieve their full potential. In 2002, SDSVP provided the organization with a three-year grant of their partner's time, talents and resources. The $49,401 grant was earmarked for the Parent's PLACE, (Parent Literacy and Academic Curriculum Enrichment) Program, which places parents in the classroom so they learn their child's curriculum.

According to Marjorie Fox, HDF's executive director, the return on investment has been leveraged dramatically when you calculate the value of strategic planning, board development, the donation of 24 computers, thedevelopment of a Web site, the development of technology to track tutor time and other activities, and other financial contributions. This example of venture philanthropy shows clearly that when you leverage money with involvement, you exponentially increase the returns.

Effective venture philanthropy takes money, time and effort. While it is often obvious to the recipient that outside strategic involvement produces measurable results, what is even more striking is that in talking with the "investors," one finds that their perspective is that they often feel they got more out of the process than the recipient of their support.

It is a delicate balance between the nonprofit and the funder. To lead effectively, one cannot be intrusive. But, by the same token, the nonprofit needs to understand, appreciate and create an atmosphere in which guidance can be accepted and acted upon. The nonprofit sometimes thinks that all it needs is the money. But what is most needed is "smart" money, and in that area SDSVP fills a critical role.

Human Development Foundation (HDF)

HDF’s goal is to help bridge the “gap” between the longterm chances for academic achievement between gifted children from higher income families and those in lower income, non-English speaking families. SDSVP funds the Parent Literacy and Academic Curriculum Enrichment
Program (PLACE). This innovative program places parents of OPEN GATE (gifted and talented education) students in the classroom with the children’s teacher for two six-week sessions to teach the students curriculum to the parents in their native language. Through OPEN GATE, HDF advocates scholastic success for children with high potential and limited economic means. Equally significant is that return on investment for SDSVP-HDF, OPEN GATE and Parents Place Programs for the 3 years ending June 2005 was $5.86 for every dollar invested.

As a result of the SDSVP/HDF 2-year strategic planning process, there has been significant progress in HDF’s organizational capacity. In addition, Partners Bob Bingham, Dale Stein and Alan Sorkin have joined HDF’s board and Marjorie Fox, HDF President & CEO, is a member of the SDSVP Board.

“SDSVP has taken HDF from a relatively unknown organization to being well respected and recognized in the community. In short, I cannot imagine where HDF would be right now, without the input, assistance and genuine interest of SDSVP and its Partners….SDSU’s OPEN GATE Program Evaluation now verifies what we knew empirically, that we have a sophisticated program that makes a difference in the lives of highly gifted, low income children”

Marjorie Fox,
HDF President & CEO

HDF Awarded for Education Research Tools

From the San Diego Daily Transcript
2/24/2005

By Michelle Loase

Human Development Foundation, which offers encouragement and educational opportunities to underprivileged children, received some encouragement of its own earlier this month when it was given the Salute to Excellence Award for Excellence in Technology Innovation.

HDF was presented with the award at the Feb. 8 event recognizing excellence in nonprofit management, sponsored by Nonprofit Management Solution and the Waite Foundation. The local nonprofit was specifically recognized for its Web-based software, created by Abaris Technologies. The software correlates tutoring strategies and student progress, and serves as a time clock. Researchers at the San Diego State University College of Education use the data to assess the effectiveness of certain tutoring strategies.

"HDF students have made statistically significant gains in reading achievement over the school year, as a direct result of the literacy strategies used by OPEN GATE tutors," said Marjorie Fox, president and CEO of HDF. "Prior to the development of this Web-based technology, it was impossible to track activities in direct relation to student English literacy gains."

Dean Rosenberg, owner of Abaris Partners, and San Diego Social Venture Partners were also thanked by Fox. The OPEN GATE program is the foundation's primary initiative, providing resources and advocacy for highly gifted children who come from low-income families. For more information about HDF, visit www.humandevelopmentfoundation.com.

Business People Lend their Talents to Worthy Organizations

From The San Diego Union Tribune
5/14/2004

By Michael Kinsman

As a busy and successful businessman, Dale Stein used to have a way of dealing with the nonprofits that always seemed to hover nearby.

"I told them: 'You need money? I'll write you a check. And if I give you more than you need, will you leave me alone?,' " Stein said.

That was before he figured out that the best investment he could make in a nonprofit organization was one of time, not money.

Stein is one of 53 members of San Diego Social Venture Partners, a group of businesspeople who have banded together to help nonprofit organizations become more stable and sophisticated in their operations. The group formed after learning about the success of a similar partnership in Seattle.

The venture partners target social organizations by providing them funding, management expertise and strategic guidance over a three-year period. The group's goal is to help nonprofit groups operate more efficiently, so they spend more time on their missions instead of having to scramble for operating cash year after year.

"Every nonprofit wants to feed 5,000 people when they have the resources to feed 50," said group member Alan Sorkin, a former housing developer who now devotes his time to nonprofit pursuits. "But the passion that exists in these organizations is amazing. It is passion most for-profit CEOs would kill for in their businesses."

Stein, who has been involved in founding or running companies such as Westec Security, Technology Assurance Group, IPx Connect and Glacier Water, is quick to agree. Tapping into that passion, he finds himself re-energized.

"I've had a lot of successful businesses through the years," he said, "but the most enjoyment I've ever had in my life is working with a nonprofit."

Stein, 57, currently is the venture partners' chief liaison with the nonprofit Human Development Foundation, a San Diego organization that is tutoring highly gifted students from lower-income and non-English-speaking families through its Open Gate program at Oak Park School in San Diego.

In addition, foundation tutors work with the children's parents to help them understand the curriculum the children are following. These tutors often communicate to the parents through languages other than English.

"San Diego Social Venture Partners has enabled us to do things we would have never accomplished on our own," said Marjorie Fox, who heads the foundation.

"It makes us more sophisticated because we've had some very strong businesspeople look at our organization and tell us what we needed to do to be more effective," Fox said. "There's no way we could go out and hire the experts they have been able to bring us."

The venture partners currently work with six nonprofit agencies, adding two a year in a three-year rotation. The group helps organizations working with teen mothers, education, work-force training and justice issues, Sorkin said.

It recently began working with Second Chance, a downtown social service agency that bought a Ben & Jerry's ice cream shop in Hillcrest. Second Chance operates Strive, a tough-love program for the long-term unemployed thay will steer some of its graduates in jobs at Ben & Jerry's for a six-month period to help them reacclimate to the work force.

The venture partners found that many of the issues facing the Human Development Foundation were like those that affect many other nonprofits in San Diego. The organization labors year after year to gain enough funding to keep its program rolling.

Stein estimates that Fox was spending 60 percent of her time just to raise the $160,000 her organization needs to operate each year.

"She spends her time and energy just trying to stay in business," Stein said. "We wanted to free her from that and let her concentrate on her program. We basically see what the needs of the organization are and then figure out a way to fill them."

Recruiting assistance

When manpower or expertise is not readily available, the venture partners solicit help from other businesspeople. That's how Mike Richardson, a strategic planning specialist from Carlsbad, was recruited to assist the Human Development Foundation develop a long-range plan. Most of his work involves small and medium-sized, fast-growing firms, and Richardson found nearly an identical situation in the foundation.

"Most organizations are trying to grow so fast that they rarely take time to plan where they are headed," Richardson said. "They don't ever seem to have the resources they need to do that. With nonprofit organizations you have an even more acute set of circumstances with even less resources."

Richardson spent six months working with Fox to develop a strategic plan, eventually joing the Human Development Foundation's reconstituted and expanded board of directors. He said his involvement with the organization opened his eyes to the world of nonprofits.

"It really was an easy buy-in," he said. "It's a no-brainer when you see how your expertise can be used to help an organization. Who wouldn't want to help out once they see that?"

The venture partners also found two firms to help develop software for a computerized scheduling program for the foundation's tutors and at one point solicited donations of 26 personal computers for the gifted children whose families couldn't afford to buy them.

Marketing strategies

As part of its new strategic plan, the foundation will work with the venture group to develop a marketing strategy for creating a $2.5 million endowment that will allow the foundation to concentrate on expanding its educational programs.

Each member of the venture partners agrees to put up $5,000 each year, plus lending time and expertise to individual nonprofits.

Sorkin said he tries to find out what skills his members have and what interests they have.

"A lot of times you find someone who has skills, but is looking for something else to give them satisfaction," he said. "It isn't necessarily using the same skills you do eight hours a day."

Commitment levels vary. Some partners work a few hours a week with a nonprofit and others 30 or more. Many have spouses who participate.

"When you are asking someone who already probably has a packed schedule to do more, you want to make sure that their spouses approve," Sorkin said. "We found that by including them you eliminate the hurdle of them adding something else to their plate."

The venture partners carefully review nonprofits they may wind up supporting. Their goal is to find organizations doing socially beneficial work that have the potential to expand.

They want to provide some financial support, but larger amounts of business expertise.

"We can give them money – and do – but the management help we give them is more valuable," Sorkin said.

When he was approached about joining Social Venture Partners last year, Stein said he was immediately struck by the "sanity" the organization was taking into nonprofits.

He said finding people who share his values makes his experience with the venture partners more rewarding. He also appreciates that he is able to put his time and energy into a project to make sure his money was being wisely spent.

"The goal is to make the nonprofits we work with self-sufficient," he said. "We have a three-year commitment, and then we're gone. But if you really are committed to these nonprofits, why would you get out after three years?"