You may have seen Howard Husock’s recent article in the Wall Street Journal, “Eating from the Hand that Bites You,” that criticizes the Edward M. Kennedy Serve America Act and, in particular, the Social Innovation Fund. In response, America Forward Co-chair Mark Nunnelly and coalition member Gerald Chertavian submitted a Letter to the Editor saying “that government has a role to play as a catalyst of social sector innovation.” See below for the complete letter:

April 27, 2009

Dear Editor,

In his recent column, Howard Husock correctly notes an explosion of innovative, entrepreneurial nonprofits, including social entrepreneurs who were “frustrated with ineffective government social-service programs.” [“Eating from the Hand that Bites You,” April 24, 2009] However, with all due respect, this does not mean we are anti-government. Social entrepreneurs are, by definition, pro-results and efficiency. And many of us recognize that government has a role to play as a catalyst of social sector innovation.

Here’s why—unlike business financial capital, social sector financial capital does not necessarily flow to the organizations that are likely to get the best results. Even top performing organizations have trouble accessing the financial capital they need to meet the full scope of the problems they aspire to solve. Additionally, programs that have sustainable revenue models when they reach scale, like Year Up, require capital to grow and build capacity. For better or worse, the majority of the financial capital available to address social issues comes from government. Therefore, to truly have an impact on the problems plaguing our country, we must partner with government, not shun it.

We see the Social Innovation Fund, authorized in the Serve America Act, as a way to improve this partnership. Social entrepreneurs have the innovations that work, and government has the financial capital to invest in and scale the best ideas. The Fund uses the principles of performance and measured results to determine which organizations to support. Politics is taken out of the equation entirely.

Government can’t solve all of our problems, nor should it. But remember that government has always played an important role in supporting innovation in the business sector, through the SBA, R&D tax credits, government contracts, and other means. This money does not make the private sector organizations less innovative; on the contrary, it provides them with the capital they need to scale their impact. We should do the same in the social sector, and the Social Innovation Fund is the first step.

Sincerely,

Gerald Chertavian                        Mark Nunnelly
Founder and CEO                         Managing Partner
Year Up                                           Bain Capital Partners, LLC