Donor Management In The Spotlight: What Nonprofits Can Learn From The Zuckerberg Contribution

Author: Jono Smith on 6 October 2010 | 1 Comments

Tags: donors

At this point, just about everyone in the world has heard about the Zuckerberg contribution. Mark Zuckerberg, the founder of Facebook, has pledged $100 million to Newark, New Jersey schools. This is the first time that Zuckerberg has made a philanthropic donation of this size, what does that say about him and how he wants to shape his impact on the world around him? What does a contribution of this size mean for the Newark school district? And how will they face the challenges of distributing a contribution of this size?

Overview: The Newark school district has consistently maintained some of the lowest standardized test scores, as well as the lowest graduation rates of any district in the state of New Jersey. This means that fewer students are graduating, and the ones that do are at an educational disadvantage to their peers from other geographical areas. A cash injection of this size could be used to improve staffing, lower student teacher ratios, add enrichment programs, improve facilities, enhance extracurricular offerings. Zuckerberg has shown that he wants to be more invovled in education and sees the funds to be used to engage students and better prepare to move forward in higher education.

Challenges

• Increased Scrutiny: A donation of this size, especially one with this level of media interest, brings with it increased scrutiny. The entire country, if not the world, will be watching Newark to see how they choose to use this windfall. Their leadership will have to be prepared for this level of media attention and be able to handle the stress that it adds to an already emotional situation.
• Difference of Opinion: There will be considerable differences of opinion as to how the money should be spent. Many people, including, parents, educators, administrators and the general public, will feel as though they know exactly how the money should be spent. And they will be very vocal in their opinions. Zuckerberg made the correct move requesting a bipartisan leadership, Mayor Corey Booker (D) and Governor Chris Christie (R), to over see the funds. This will reduce the chances of the administration of the funds will become political and focus attention on the students.
• Monitored Return on Investment: Now, each of the challenges listed above feed into this last point. Because so many people will be watching, and because not everyone will agree on how the money is spent, you can be certain that there will be a close scrutiny of the measurable return on investment. Obviously, then most visible form of return would be marked improvement in both overall standardized test scores and graduation rates. If this type of return is not shown, then the public will look at the funds as being wasted and the opportunity as being lost.

Opportunities: If this donation is handled properly, the Newark School district has the potential to become a fantastic example of the difference that large donations of this type can yield. It could have the power to start a trend of giving and a name a cause for the next generation to stand for. It has the power to stimulate change. All the pieces are there, they just have to fall into place.