Hi Reader,
Too many people get paid for what they don't like to do. I was that way for many years, working as a lawyer, but not working for the clients I wanted to help.
When Georgetown Law Center asked me to come teach fulltime in 2011, I resolved that I would not go back to private practice. It was a big jump.
Now I get paid to help nonprofits and write about how nonprofits can do more good in the world. What's not to love about that?
Here's what's in in this issue:
- A nonprofit making a values-based choice to forgo federal funds to stay true to mission.
- AI prompts to develop a better culture at your nonprofit and to consider secondary and tertiary effects of proposed courses of action.
- A very good Valentine's Day fundraiser and a clever twist on an art auction.
We Don't Want Your Cash
In Mountain View, CA, the Community Services Agency (CSA) is turning down federal funds rather than compromise its inclusive service values. The safety-net nonprofit announced it will not apply for its usual HUD Community Development Block Grant this cycle, due to new U.S. rules requiring grantees to verify clients’ immigration status and ban certain referrals (e.g. related to “gender ideology” or abortion). CSA’s board unanimously decided in December to reject any funding that would force them to screen clients – “We will serve anybody who comes to us,” Executive Director Tom Myers said. About 12% of CSA’s $6 million annual budget comes from these federal sources (e.g. senior nutrition programs), but the agency has diversified its revenue with private donations and reserves to absorb the loss. Leaders are now rallying local foundations and donors to fill the gap.
This stance is replicable: it highlights how nonprofits can preserve mission integrity by planning financial independence (through fundraising and partnerships) to avoid restrictive funding.
Building Great Culture
Every organization has a culture. Not every culture is a good one.
PROMPT: Act as an experienced organizational culture and people-ops expert. Create a practical, actionable plan to help [nonprofit] build a strong, healthy, and scalable company culture. You can find the nonprofit online at [URL]. Include the following in your analysis:
- A clear strategy to foster a culture of innovation, with initiatives that encourage creative thinking, collaboration, and safe experimentation.
- Specific recommendations to promote diversity and inclusion across hiring, training, leadership development, and internal policies.
- Initiatives to support employee wellness and work-life balance, including flexible work models, mental and physical health programs, and stress-management resources.
- A framework for continuous learning and professional development, covering training programs, mentorship, feedback loops, and access to learning tools.
- Guidance on defining and reinforcing core values and ethical standards that guide daily behavior, decision-making, and alignment with the company’s mission.
- Team-building ideas and rituals that strengthen relationships, improve communication, and create a sense of belonging.
- A recognition and rewards system that consistently acknowledges high performance, impact, and behaviors aligned with company values.
- Communication practices that promote transparency, trust, and engagement across all levels of the organization.
Focus on practical steps, examples, and systems that can scale as the organization grows. Before beginning to work on this prompt, ask me any clarifying questions you need first.
(Adapted from Superhuman Jan 13, 2026.)
Ramifications
Fools rush in, where angels look for second and third-order consequences.
PROMPT: Act as an expert in cause and effect and systems theory. I am considering taking [specific action].
First, clearly describe the immediate, first-order outcome of this action.
Then ask:
What happens as a direct result of that outcome? (second-order effects)
What happens because of those second-order effects? (third-order effects)
Map this chain at least three levels deep, without skipping steps.
At each level, identify:
The incentives created for each stakeholder
The behaviors people are likely to exhibit in reality, not the behaviors I intend or expect
Any feedback loops, reinforcement effects, or unintended consequences
Finally, ask:
If this continues logically and consistently, where does it end?
What system or equilibrium does this action ultimately produce over time?
Do not optimize for optimism. Instead, optimize for realism and internal consistency.
(Adapted from Superhuman Jan. 21, 2026.)
Name a Cockroach After Your Ex
The Houston Museum of Natural Science revived its annual heartbreak gag: donate, then slap your ex’s name on a hissing cockroach and get a certificate. It’s petty, cathartic, and weirdly wholesome—because the money supports the museum while your “tribute” skitters on, unbothered.
Off the Wall Fundraiser
A Michigan arts nonprofit called Creative 360 staged a delightfully chaotic event: hundreds of 6x6 artworks sold at a flat price, but you don’t learn which artist you bought until after purchase.
___________________________________________
I appreciate all the new members signing up! Welcome! Let me know what issues you're facing in your nonprofit (by responding to this note), and I promise to explore whether there's a solution that can help.
If you have received this email from someone, use this link to sign up for free.
Ted
|
|
Founder and CEO Risk Alternatives, LLC 202.758.7572 (cell) 608.709.0793 (office) Website
Author of Managing Your Nonprofit for Resilience
We help nonprofits thrive by providing practical tools and support to address uncertainty and improve risk management.
|
Did a cool person forward you this email?
Sign up here