Nonprofit Radio for February 14, 2022: Fundraising Amid Polarization

Drew Lindsay: Fundraising Amid Polarization

From The Chronicle of Philanthropy, Drew Lindsay uncovers the details from his two recent articles reporting on the impact of political polarization on nonprofit fundraising.

 

 

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[00:02:25.84] spk_0:
mm hmm. Hello and welcome to tony-martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. It’s the valentine’s Day show. I hope you and your valentine or valentine’s can snuggle a bit and do something special together or at least share that you’re special to each other. Oh, I’m glad you’re with me. I’d be thrown into para que sis if I had to hear that you missed this week’s show fundraising amid polarization from the Chronicle of philanthropy. Drew Lindsay uncovers the details from his two recent articles reporting on the impact of political polarization on nonprofit fundraising on tony stick to an example beyond polarization into conspiracy theory. Last week I said Amy sample ward would be on this week. You have no idea what it’s like working with these big time celebrities. There was a calendar mistake and it would be indiscreet of me to say who made the mistake. Amy, we’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot C o here is fundraising amid polarization. It’s my pleasure to welcome to nonprofit radio Drew Lindsay. He is a long time magazine writer and editor who joined the Chronicle of Philanthropy in 2014. He previously worked at washingtonian magazine and was a principal editor for teacher and M. H. Q. Which were each selected as finalists for a national magazine award for general excellence In 2005. He was one of 18 journalists selected for a year, Long Night Wallace Fellowship at the University of Michigan. You should be following him. He’s at Drew Lindsay C. O. P. If he was Drew Lindsay COPD that would be chronic obstructive pulmonary disease. But he doesn’t, he doesn’t have COPD. He’s at the Chronicle of philanthropy. So Drew Lindsay C. O. P. Welcome

[00:02:35.66] spk_1:
Drew, appreciate it.

[00:03:24.84] spk_0:
My pleasure. Thank you. We’re talking about two of your very recent articles in the Chronicle. one is donations in the balance fundraising in the age of polarization. The other is advice for fundraisers caught in the middle of political battles. I’d like to start with a quote from, from the second of those. And then, uh let’s let’s talk about what’s going on, quote at the extreme our episodes where blocks of disaffected donors protests and organizations position or work. But fundraisers report that even casual encounters with supporters can lead to challenging conversations about political and social issues. End quote. What does your reporting tell you what’s going on? Drew

[00:05:00.44] spk_1:
Well, it’s interesting how this story even came about in the sense that um for that I’ve been asked to do for six months. Very deep stories on fundraising. What’s going on. So, I’ve been talking a lot of sources, a lot of fundraisers, a lot of consultants just generally to see stories that I should pursue. And almost as sidebars, um, these individuals had mentioned and oh yeah, this is going on. This is sort of we’re encountering this daily. Um, and I also saw there were some stories where some of these, um, sort of collisions of politics in a sense popped up and became news stories. Um, so I decided this was sort of worth the story for us. And I think, um, importantly for us, I think we write for a audience that is largely fundraisers in the sense I have often is that they’re not very connected with each other. They often think their work and their problems and their challenges, they sort of face a little bit of isolation. So we wanted to talk about the daily experience as best as we could to sort of in one sense, make nonprofits, their leaders and fundraisers realize, hey, we’re not alone. It’s not like we’re doing anything wrong. Um, at times it’s that we’re encountering this because the way the country is and, and the way things are playing out. So that was our goal with this story, um, is to offer a glimpse. I don’t by any means suggests that my reporting covers at all and that this is happening nationwide. I do think it’s common enough that people are going to count encounter maybe just in a casual conversation and maybe something bigger. But we wanted to show that happening.

[00:05:21.54] spk_0:
Yeah. You know, you say in one of the pieces that non profits are bringing together large numbers of people who just reflect society’s divisions and the country is divided polarized. So nonprofits are sometimes in the Crossair. Um, you know, let’s talk a little about, you know, social media and what, you know, how things can inflame, you know, so quickly. And, but the anonymity behind that

[00:06:31.54] spk_1:
to, I think one of the interesting things, some of the veterans that I talked to about this issue said, you know, the, the country has, you know, this is not new to fundraising in the sense of encountering donors or others who disagree with the organization for some reason, but, and there are examples in the country’s history. Talk to one fundraiser who have been, you know, working since at least the civil rights movement, he said, she said, this is, you know, this, it’s been part of what we’ve dealt with a long time. I think there is some sense that social media um accelerates this intensifies. It amplifies it, um, that, you know, people are, as we all know, people are very quick on social media to be in their own camp one and two to react to whatever they see in the moment. Um, without measured thought without context. Social media itself is not a great, um, you know, a great means of conveying nuance of conveying, you know, um, deep background and context. So I think people are reacting sometimes too quickly to things that are not put forward in the right way, which just inflamed the situation in a sense.

[00:06:46.64] spk_0:
And then you have the anonymity to it. Also, you quote, you quote someone who wonders if the people there, that she’s talking to day to day, you know, it might be trolling anonymously, you know, and and inflaming

[00:07:55.34] spk_1:
I think that’s true. I think it’s unsettling for people that you don’t know. Um you can be sitting in a development officer communication office and you are putting forward messages from your organization and you can have um, what’s called clap back people reacting on social media to what you’ve done and you really don’t know. Is this a supporter? Is this, uh, alumni that is upset? Or is this someone from the outside? Is this someone who has no connection to the organization whatsoever will happen to see this and reacted. And so it’s a little hard as a um, you know, steward of your organization to understand how to react to those kind of things, because it may just be somebody who’s Who isn’t again, isn’t a supporter and doesn’t even know much about your organization just responding to those 160 characters in the tweet. Yeah,

[00:07:56.50] spk_0:
it could just be a troll threatening to stop giving who’s never has given and and maybe never even heard of your organization until they

[00:08:48.84] spk_1:
Yeah. And I think some of the in the advice piece, I think some of the folks really tried to help put that in perspective, that you can’t just assume that because you have a mini firestorm on social media, that that is all your supporters, that if someone on social media declares, I’m never giving you this organization again, that may not be true and maybe something I thought about it in the moment and so to try and also that it it often doesn’t represent had several organizations. Tell me, you know, something that happens on social media that probably doesn’t represent our whole constituency. It’s it’s maybe a small minority and you need to keep that in mind as you react as you respond. That isn’t all what’s on social media doesn’t represent your whole supporter base.

[00:09:45.14] spk_0:
It’s time for a break. Turn to communications. Thought leadership. Do you or your nonprofit want to be seen as leaders in a public dialogue, not merely participating in a conversation that involves your work. Wouldn’t it be delightful? Wonderful to have media call you to get your opinion on breaking news. It takes time to learn that credibility to build those relationships. But it’s eminently doable. Turn to can get you there, turn to communications. Your story is their mission turn hyphen two dot c o now back to fundraising amid polarization. Yeah. You you say the group at M. I. T. The Free speech

[00:09:47.61] spk_1:
Alliance,

[00:09:55.04] spk_0:
You know, they based on your reporting or at least up until your reporting. You know, they had something like 500 followers but Almost 150,000

[00:09:56.36] spk_1:
alumni,

[00:10:10.64] spk_0:
but but a vocal a tiny minority but but vocal inflammatory and that you know that leads to um the potential of donations being used as a one of your 11 of the folks you quote says as the donations can be a screw that’s

[00:11:14.84] spk_1:
turned. Yeah. Yeah. And I think that’s um I think that’s one of the things that surprised me about it is that I knew that that you know, people sometimes talk about on social media and letters or you know, they’re responding, there’s an organization to a message that they may say in that individual response I’m never gonna give. It was interesting to me to see that some critics of an organization now have taken it and become more formalized since uh the M. I. T. Case. You you mentioned um the Free speech Alliance has not taken this step, but they are considering forming a donor advised fund in which they would encourage um supporters of their free speech issues to instead of giving to M. I. T. They would give to this donor advised fund. And then it would in a sense, be held as leverage as they try to convince the university to to pursue certain free speech principles that they adhere to. So um that somebody gets surprised me is that in some cases it’s become a little more formalized in terms of how you used donations as leverage.

[00:11:23.24] spk_0:
Yeah. You saw this at Washington. And lee also,

[00:11:55.44] spk_1:
that’s correct Washington lee the free speech group there um has I think 10 to 12,000 supportive followers. I won’t say supporters that, you know, they, when they sent out an email, they have a base of about 10,000 and they have encouraged repeatedly to their supporters to withhold their contributions to the university as a means of getting the university to pay attention to them. They feel the university we disagree that they feel they have not, their views have not been heard. And so they are trying to, in a sense, use donations as a way to make the university pay attention to them. Um, so

[00:12:15.24] spk_0:
yeah, at Washington and lee, it’s around the, the treatment of general lee, the, the administration took his name off the chapel and that, that seems to have incited ignited the, the, the organization called the general’s readout. That’s correct. I guess they’re the Washington and lee generals.

[00:13:05.94] spk_1:
And I think it’s, I think Washington is an interesting case study of this in the sense that, um, you know, it’s an older institution. Um, it has that history going back Washington lee or in the name and its current, there are a number of, of um, individual supporters, faculty alumni who would like them to consider dropping lee from the name of the institution itself. So they have that pressure at the same time as an institution, they made the decision to take the name of lee off of the sort of central chapel to the college. It’s now called the university Chapel. So, um, this, this generals readout is not, is not, I’m happy with the decision to drop leaf from the chapel name, but others are not happy with the university because it’s not taking lee out of the college name itself. So, um, in a sense, they’re feeling this pressure on all sides

[00:13:27.44] spk_0:
on 11 side believes they’ve gone too far on the other side believes they haven’t gone far enough. That’s correct. And then, and you know, non profits are caught in the balance. Um, and your reporting suggests this is, you know, across all missions. I mean, we’re talking right now about education, but you’ve talked to folks in the arts, social services, Environmental.

[00:16:32.74] spk_1:
It’s true. And it’s, um, that it was interesting to me and I think, um, the social scientists I talked to David Brubaker, um, sort of put this in context, in the sense that, you know, nonprofits, any, any organization in the country at this point, schools in particular, you’re seeing a flash point, any, any organization or group in the country that is bringing together large groups of people behind a mission. Um, it’s sort of subject to this because the nature of that mission now gets called into question. So yes, you see. Um, uh, so I think that’s one thing I think there’s another viewpoint we ought to consider in that, um, there are, there’s some pressure on groups, in a sense of taking it, you know, I’ll just say it’s their outside their lane, you know, since they may be doing environmental work, or they may be doing health work and if they take up an issue or cause um, I think the one that’s most, most, most top of mind for me is an environmental group, um, stands behind Black Lives Matter or takes up an issue like that. They even have some liberal supporters, people who are part of their constituency, kind of them saying you’re an environmental group. I’m not, I’m not supporting you for your stand on Black Lives Matter and supporting you for your work in the environment. So, um, I think it’s it’s across a lot of different cause areas, um, perhaps most, I would say it’s most intense, perhaps at schools, colleges, universities, um, in some sense, those are places where supporters feel a real personal connection to those institutions and they, in a sense, have much more invested in what they’re doing and how they’re doing than say, uh, supportive for a health group that is behind its mission to reduce produce cancer, to do certain things. So, um, and, and there’s a sense of belonging to those institutions. And so, um, a lot of talking to schools and colleges, that sense of belonging is sometimes hurt when or change, that’s their their relationship with school changes, um, when they feel like the mission is now, or the school has gone off and done something they don’t agree with. So, um, colleges and universities also see themselves as um, societal change agents in a sense. They may be seeking a change in, in the society that some of their online may say, Well, that’s not something I see as a positive. So I would say it’s most intense that I was surprised. Um, David Rubin acre put me onto this. Um, the number of clergy and churches that feel because of Covid caught in the middle in a sense and that they are, you know, obviously, you know, bringing large groups of people together. And the question of whether you have in person services, worship group meetings, kinds of things, whether you wear masks and things have become real contentious to the point that, Um, David pointed me to the survey, four and 10 pastors recently surveyed said they are considering leaving the field and this is a real distension. This dynamic is a real problem for them. So

[00:16:42.83] spk_0:
yeah, the masking is in churches is interesting, but I could see it in theater groups

[00:16:47.74] spk_1:
too. Yeah, absolutely.

[00:20:41.24] spk_0:
We’re gonna, we’re enforcing masking for the safety of our, of our patrons. Well, you’re going too far, you’re giving into fear. And then if they don’t have a masking requirement, then you’re not keeping us safe and we’re not. So for that reason we’re not going to come to the right to the congregation or to the theater. Yeah, It’s time for Tony’s take two drew and I are talking about political polarization, hurting nonprofits. There’s a story this week that goes even more extreme. It’s more extreme in what’s driving the pro driving the impact and in the impact. I can’t think of anything more benign than butterflies except maybe tofu butterflies at least you know, have have independent flight tofu, you shake the plate and just jiggles. So tofu might be more benign than butterflies, but butterflies are pretty darn benign. Not according to some conspiracy theorists who claimed that the National Butterfly Center, a nonprofit in Mission texas is a refuge of human smuggling and child sex trafficking. There’s no evidence to support any of these claims. It’s a, it’s a gross conspiracy theory. Sounds very much like the, the pizza parlor and pizza gate in Washington D. C. With the, with the theories the National Butterfly Center has had to close because they’re concerned about the security of their staff. I mean, I presume the butterflies would be safe, although maybe the butterflies are the ones, maybe they’re spiriting aliens across the border. Uh, so the center has had to close because of these concerns about safety. It involves the border wall. There’s, there’s a segment, there’s a segment of the border wall that’s near the, the butterfly center and, and the center objects to the wall being built through their property. That’s what seems to have given rise to the, to the theories claimed to be happening at the National Butterfly Center. So you know, you can, you can find that it’s again, National Butterfly Center in mission texas. It has been in the news just this week. So you know, Drew and I are talking about trends. I mean he’s a journalist. He, you know, he has dozens of people that he’s spoken to. I see this one case. I’m not saying it’s a trend. It’s not one case doesn’t make a trend, but it’s quite disturbing. And you know, it could happen to any nonprofit really. I mean, I don’t see how an organization can be exempt and I can’t think of one that’s more innocent than a butterfly center. That is Tony’s take two. We’ve got boo koo but loads more time for fundraising amid polarization withdrew Lindsay listeners, you may notice a change in sound quality. That’s because we lost the internet connection and uh, I’m now on my phone. But non profit radio perseveres through technology, uh, disruptions and disappointments. But there’s no, there’s no, we’ve, I’ve been at conferences and had the lights turned off around me. So there’s no, there’s no stopping. non profit radio Drew, you had mentioned racial equity statements and black lives matter, but it could be something as seemingly innocuous as an auction item that incites people.

[00:21:40.34] spk_1:
Yeah, I think Auction finishing. I talked to some, some consultants and fundraisers in the west or some rural areas where 10 or 15 years ago, no one thought twice about Putting in, um, say an afternoon at the gun range as an auction item or auctioning off a piece of weaponry or some sort of accessory. No one thought twice about it now, 10, 15 years later with school shootings and other things starting raising the profile and issues concerning gun safety. Those are really questionable. Yeah. At the same time they’re part of the culture in some of those rural areas. So fundraisers think really wrestle. I think, you know, there are other things. Even something as basic as a holiday, email or video for any given holiday particularly say around the christmas season is a real cause for anger for people. How do you, how do you, um, write something that isn’t offensive at the same time? It’s not gonna gonna still has meaning still has something some some back. So, um, yeah,

[00:22:15.34] spk_0:
all right, interesting. You know, interesting times. Uh, important. I think just for consciousness raising. So uh, nonprofit leaders are aware that there’s the potential out there. So let’s, let’s talk a little bit about advice for, for fundraisers, which, you know, draws from your second piece. And the first idea is that prepare.

[00:24:01.44] spk_1:
Yeah. And I think a lot of the folks that I talked to really want to put notice leaders on notice that this is part of your job as a nonprofit leader as an advancement leader is to consider this and prepare your staff. Um, part of, you know, the advice is often that a position the group takes or a new program or something needs to be firmly explained and put in context of the organization’s mission. And um, you know, that can be done at a high level. But the thinking and strategy behind it needs to be conveyed to the gift officers. That needs to be conveyed to the donor communications staff to steward folks. They all need to be prepared for even perhaps have talking points prepared for individual conversations with donors for putting out their own communications so that, you know, a stepped in organization takes that is rooted in mission. Those routes have to be made very clear to folks. Um, so that’s a little bit on leadership. I think leadership also has to look at gift agreements and look at, um, what those policies call for, what gives it that can accept what’s the contingencies for them. Um, that was something everybody suggested that the groups ought to take a second look at in in lieu of this kind of political context out there. Um, I think there’s also some sense that, um, Gift officers in particular needs some process put in place for them. That if they have really awkward, uncomfortable, even sometimes offensive conversations with donors that they have recourse, they have a process. They know what, how the organization will handle those situations. You can’t leave your Gift officers out there alone to deal with this and manage it on their own, that, that they have to feel supported backed up. So a lot of this starts with leadership and proper preparation.

[00:24:32.14] spk_0:
And your reporting suggests there’s there’s a shift away from donor centrism and, and into, uh, you know, you’ve, you’ve alluded to it a couple of times that the mission and values of the organization, that, that in the past this might have been something that organizations rolled over on just to appease appease donors, especially major donors, but not so much anymore. You’re seeing a trend away.

[00:25:17.94] spk_1:
Well, I, I think, um, and you know, put this in context, I think there there’s donor centrism that people embrace, say, 15, 20 years ago, some veterans in the field talked about, there might have been a time where the donor could call the shots on these things and this is a long time ago, but people have begun, I think, to move away from that strict and embrace of donor centrism and there was some sense that, you know, the gift that someone is giving you is for the mission and purpose of the organization. And again, your conversations have to tie whatever you’re doing into that mission and purpose of the organization. Um, so it’s perhaps, um, A little bit of a shift away from the focus on the donor and what they’re doing for the organization as opposed to here’s what the organization is doing. Um, so I think that’s true. And, and again, it was the veterans mainly talking about this and that there was a time again, 15, 20 years ago where donors called the shots. So

[00:25:46.24] spk_0:
and that also helps the organization root the, the controversy in, in its own, in its own work. And so that this is not, you know, just a reflection of the times. It’s not a whim that we, you know, we, we read a headline and we’ve taken a stand, but this is rooted in our, in our work, what we

[00:27:04.04] spk_1:
believe absolutely that and that folks may, you have to make clear when you make a change or you make a position, similar things you really have to read and strategy in your mission because people can too often see you as reacting to the headline, putting a finger to the wind, trying to react to the times. And you know, it’s one of the things about social media that was interesting in my conversations with both you for to hear two things you hear, you know, um don’t, there’s a temptation when you’re getting for the flap clap back on social to sort of pull back and not do as much and folks that, you know, you can’t do that. You’re not, you’re not, you know, you’ve got to continue to advance and promote what you’re doing in your cause. But at the same time you have to consider that social media is an incredibly condensed prism through which to view something and if you need to do the work to tie something into mission and to provide context and nuance, Keep dynamometer going to social social has to be done very carefully so that you can make the connections that are necessary for people to see how this ties back to your mission. Um, so that’s it sort of contradictory advice in the sense of you want to keep doing social, you want to resist the temptation to pull back, but at the same time you gotta be careful what you do and really craft it well. So,

[00:27:18.64] spk_0:
and then likewise, you know, having difficult one on one conversations with donors don’t, don’t shy away from them as well as its the advice you were

[00:28:09.04] spk_1:
hearing. Well, it was really remarkable and a lot of fundraisers, you know, there are some challenging and difficult conversations and um really they need to hear out from people some borders what the concerns are. And again the conversation is bringing about to explain calmly and, and you know, um, without reacting defensively, in a sense to how this ties to mission I think um, I was surprised and that a number of fundraisers talked about those difficult conversations actually leading to a deeper relationship with a donor and sort of getting you beyond some superficial sort of things and getting the donor perhaps to understand more about the mission of the organization. So that part of the advice that don’t shy from these conversations is there can be a real benefit from. Um, so, but at the same token, there are some people are gonna walk away, but that there are some benefits,

[00:28:28.04] spk_0:
it wasn’t it the ceo of the Salvation Army who told you that that when, when he has these conversations, they almost almost uniformly lead to, uh, an understanding across on both sides.

[00:28:52.64] spk_1:
Yeah. And I think that that suggests there has to be a process in your office for when perhaps you get an email back or you get, um, some sort of response or negative reaction to seek out a personal one on one conversation, those can often, you know, people are disarmed by those and suddenly you see each other as humans and things change, the dynamics change.

[00:29:08.24] spk_0:
So yes, considerably right, right. 11 thing that came out of the reporting that I was, I was surprised that was the idea of in these conversations sharing your own personal views.

[00:30:15.34] spk_1:
Well, attention that since the peace has gone out, that’s the most reaction I’ve got from people and some suggesting and that’s not what you should do. I think, um, I think as the piece suggests that there are some fundraisers who really feel like their job is not to censor themselves that, that in a sense, you know, they’re putting their whole self into the job and for them to censor. Um, I think perhaps one way to look at it is, you know, your personal view of why this fits within the mission of the, the, you know, I don’t think you need to sound off on things that are completely unrelated to the topic, but if you have a view of an organization position or program or what it’s doing and how it matches with your beliefs and what the organization should be doing. That’s a way to frame it. Um, as opposed to, you know, you know, if this conversation strays into say gun rights, it’s not like you have to pop off on that just because that’s how you feel. But try, you know, you don’t eliminate your personal, um, views when it comes to things that are really related to the organization and is said to make you a a more three dimensional person for for the donor, if you explained how your views high end to why the organization is important to you.

[00:30:22.94] spk_0:
Yes, you’ve, you’ve said it a couple of times relate how it relates to the, to the mission and values of the organization,

[00:30:28.74] spk_1:
right?

[00:30:29.27] spk_0:
Um, being willing to apologize when you when you do make a mistake.

[00:31:38.34] spk_1:
And I think that, um, you know, there are a couple example of, of organizations that perhaps did something that touched off something they did unintentionally. And I think, um, and again, I’ve had some response since the piece has been out, but being upfront declaring it a mistake, not trying to wrap it in some sort of pr gauze as if really this is what we intended and oh, you’re, you know, you the donor or not understanding how we came out, you know, just sort of upfront be upfront about it. I think some readers that I’ve talked to since the piece came out suggested that if a donor is offended by something, it’s not, there isn’t necessarily a mistake on your part and you shouldn’t be automatically apologizing for something. It’s, I think the piece and I probably didn’t frame it correctly is suggesting more where, um, you know, the organization truly has made a mistake in terms of language or something. And again, the the idea is to be upfront, um, to not try to hide that just leads to erosion of trust. Um, but by the same token, not to assume that every time someone objects to something, you’ve done that it is your mistake. Um, so if that makes sense.

[00:31:47.65] spk_0:
Yeah, yeah. And that’s a fundamental of crisis communications to and if if the organization has made a mistake,

[00:31:55.14] spk_1:
absolutely

[00:31:55.83] spk_0:
be out front with an apology,

[00:31:58.26] spk_1:
you know, right,

[00:32:04.34] spk_0:
yep, control of the, of the narrative. Um, and then, you know, finally you alluded to it earlier, but I’m gonna flush it out of it. Not to panic if people say they’re gonna withdraw their support.

[00:32:40.44] spk_1:
Yeah, I think that’s the case, and again, it’s it’s numbers and particularly looking at noise on social media or noise of, you know, phone calls or response, you know, keep in mind, um, you know, that you have a very large constituency and supporters, um, I know of, of a couple of nonprofits that had, um, something touched off, you know, phone calls or social media and they felt compelled then to write to their entire constituency about it. And then long behold their entire content. You know, 90% of the constituency had no idea what anybody was talking about. And all you’ve done is raise it to their attention. So keep the criticism, the protests, the concerns raised in context of your broader, um, set of supporters.

[00:32:58.24] spk_0:
What’s some of the other reader feedback that you’ve heard?

[00:33:46.34] spk_1:
Uh, it’s been it’s been good in a sense. I I described this as you said it to a glimpse of what’s happening. And, you know, I never in our reporting want to suggest that this is universal or anything we’re describing. And I really didn’t want this to be seen as a glimpse. Um, and, and this is not that people are seeking me out. But if I continue to talk to people for other stories, they will mention this story and said, oh, yeah, you know, you’re right, this is happening. And it’s often the what you and I have talked about in the small ways that this sort of tension is creeping into everyday work. There are some cases where individuals have mentioned, yes. Because of our stand on this, a million dollar donor walked away and, you know, that’s this is a reality. So, um, I’ve heard it just in casual conversations that I’m doing reporting on other stories. That a confirmation in the sense that this is an issue for a current in front of mine for a lot of people.

[00:34:20.44] spk_0:
All right, well thank you for making us aware and sharing some of the advice advice based on your reporting. Again. The pieces are in the chronicle of philanthropy donations in the balance fundraising in the age of polarization and advice for fundraisers caught in the middle of political battles. He is Drew Lindsay at Drew Lindsay C. O. P. Thank you. Thank you very very much.

[00:34:22.03] spk_1:
No, thank you for your time. I enjoyed it.

[00:35:36.44] spk_0:
My pleasure. Next week For sure. Amy Sample Ward returns to talk about the 2022 nonprofit technology conference. Talk about celebrity culture. But I will work through it. I’ll work through their booking agent, attorney Pr staff virtual assistant. I will get them here if you missed any part of this week’s show, I Beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications Pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Our creative producer is Claire Meyerhoff shows social media is by Susan Chavez. Marc Silverman is our web guy and this music is by scott stein. Okay, thank you for that. Affirmation scotty Be with me next week for nonprofit radio big nonprofit ideas for the other 95% go out and be great.

Nonprofit Radio for February 7, 2022: Influencing Young America To Act

Derrick Feldmann: Influencing Young America To Act

Derrick Feldmann returns to discuss the takeaways of this study, revealing the causes, actions and influences that move young Americans.

 

 

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[00:00:10.04] spk_0:
Hello and welcome to tony-martignetti

[00:00:12.93] spk_1:
non profit

[00:00:13.60] spk_0:
radio

[00:01:47.34] spk_1:
big nonprofit ideas for the The other 95%,, I’m your aptly named host of your favorite abdominal podcast. Oh I’m glad you’re with me, I’d come down with paraphernalia MMA if you lit a candle to the idea that you missed this week’s show, influencing young America to act. Derrick Feldmann returns to discuss the takeaways of this study, revealing the causes, actions and influences that move young americans On Tony’s take two. Thank you for indulging me. We’re sponsored by Turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c O What a pleasure to welcome back after uh probably too long. Too long a hiatus. Derrick Feldmann, he is a sought after speaker, researcher and advisor for causes and companies on social movements and issue engagement. He leads the research team for influencing young America to act The study of how young adults 18-30 are influenced by and influence others to support social issues and movements. It’s that study that brings him back to nonprofit radio he’s at Derrick Feldmann two Rs and two ends. Well there’s two es also but they’re not these are not co located there, they’re spread across these two names. Eric welcome back to nonprofit radio

[00:01:49.64] spk_2:
tony thanks so much, I appreciate that on the name. You know the two Rs and two ends can throw a lot of people quite honestly,

[00:01:55.54] spk_1:
yes, I don’t want listeners following the wrong Derrick Feldmann, he’s whoever he is. Uh

[00:02:11.04] spk_2:
well you would be shocked there is another one and my mom will ever this person actually, there is a Derrick Feldmann, that is a very well recognized medical professional in europe actually. And so um my mom every once in a while asked me if I’m into medicine,

[00:02:19.21] spk_1:
so she wishes all these years, Why didn’t you be a doctor?

[00:02:25.11] spk_2:
Exactly.

[00:02:28.05] spk_1:
Could have been better than him.

[00:02:30.15] spk_2:
Exactly. My

[00:02:37.24] spk_1:
son, he could have been a doctor. Alright. Chosen entrepreneurship. Alright. Um congratulations on the study. I know you do this annually. Congratulations on the 2021 study coming out.

[00:02:43.34] spk_2:
Yeah, absolutely. I actually, we do this four times a year and the one that we’re gonna be talking about today is sort of a compilation and including the last one in this in December, which is 2021. So yeah, thank you.

[00:02:56.07] spk_1:
You do it seasonally. You’ve got spring, summer, fall and winter.

[00:03:04.94] spk_2:
We do actually. That was born out of the Covid times. We were, we were um We were doing a lot of quantum qual during when COVID in March 2020 and we just sort of stayed with it to be quite honest. It changed a lot of our research approach.

[00:03:35.74] spk_1:
All right, so let’s let’s go to the study. Um I don’t know, it must be the New Year or something and I’m feeling generous with guests. Usually I’m very dictatorial, We’re gonna talk about this and then this and then that and then I’ll give you a chance then if there’s time, what would doug guests like to talk about? But I don’t know, maybe like I said, maybe it’s a new year. I don’t know what you you’re immersed in this, you’re the lead researcher, what’s your headline for the for the study?

[00:06:00.24] spk_2:
Uh you know, I of course have the chance to look at across the whole year. So while there’s some good stuff at the end of the year, I think the number one thing that we are seeing is and I I I have to unfortunately be the bad bearer of news at times around these moments. These issues and movements that say started the pandemic have really sort of lessened a little bit in their participation and interest. And I don’t say that just because of because of our december data, but I say that looking across from 2020 20, and two where we are today. And so things like social justice or racial justice, those have decreased the participation in our panels in general. And I mentioned this a lot in um the upfront of this year’s sort of compilation report which is around moments that we have in general and that once these moments go away maintaining engagement still is a hard thing to do. It’s still is and if you look at in in in this kind of study versus all the other studies I’ve led in the past, we always look at the influences to one’s behavior, right? So it’s not just what did somebody do, but who told you what influenced you? How’d you get there as well? And it follows the cultural media, popular culture narratives and developments that happen in society. And I think this is really really important for movement leaders and and cause leaders, C E. O. S and um even brands that are working on social issues is, you know, if you’re dedicated to your issue, which all of them are, you know, what are you going to do when you’re not in the headlines and when you’re not upfront and everything else? And that’s the hardest part, especially with an audience that’s very digitally native, very engaged in media and so forth. So I think that that was probably, you know, one of the things that I’ve continued, we’ve continued to track and kind of see. Um one other, one other thing to that we I think it’s important to understand one social issue engagement in context with all the other things that they do. I see. And you know, I I’ve been a researcher focusing on young people now for 15 years and I’ll see studies that talk about young adults.

[00:06:03.51] spk_1:
You’ve been doing this work since you were 12,

[00:08:19.94] spk_2:
practically right. Um you know, when we look at these studies today, I’ll often find an organization would come to me and say we did our own research on what young americans want or something. And we found out that they’re really interested in our programs? We found out that they’re really interested in these kinds of things and so forth. And I asked them, I said I want you to share with me your questions and when they share those questions with me Tony I see as if we’re asking about social issues in a complete vacuum constantly and the person who takes those surveys will consistently say the ideal state. We always do that. That’s the ideal, right? That’s the path of least resistance are our brain goes into. And one of the things that’s very apparent in our studies is that we move beyond just social issues and triangulate that with other things that are really going on. And I will say this over the since we’ve started tracking things heavier and deeper when we started this research project four or five years ago to where we are now. And even through the pandemic, there is one consistent rising issue in addition to their social issues and that’s mental health and it has not slowed. It has increased over time, not only because our panels and are individuals who are in them are affected, but they know a lot of peers and young people who are also affected. And I I think this is important because we all want as leaders, everybody to do everything for us and with us in some way, shape or form that’s the constituency side. Let’s get everybody active for the issue help our beneficiaries and so forth. But what happens when the constituents are also challenged with many other things? And where does our issues sit in that? And I think we have to recognize the challenges, especially if you’re working with younger demographics like 18 to 30 year old, the challenges that they face in addition to the desires that you want them to to hopefully perform. And so we did a special call out in this one because it’s just been consistently concerning and rising not only as just being affected by it, but also one that they see should be addressed as well as a larger social issue within America. So I, I bring those 23 points to to hear because I think it’s it’s a time we must recognize that as leaders as well.

[00:09:30.04] spk_1:
And we’re going to talk some about the mental health issue, how it’s how it’s evolved and how consistent it’s been. Um, I think bearing out your, your first point about moments and shifts in shifts in interest. I thought very interesting Across 2021, um, animal rights, spring summer and fall, We’re the # one issue of interest. But then in winter they dropped off. They weren’t even one through three and, and civil rights took the place of of number one in the, in the winter, but but also interesting in that is that, you know, all three of those are our, well, the concern for others just shifted from animals to in the first three quarters to two people in the, in the fourth quarter, but also civil, but civil rights Was civil rights remained in the top three all year. It’s just in the fourth quarter it became the number one, the number one area of interest, but civil rights was the only one that was throughout the whole year.

[00:11:49.64] spk_2:
Exactly, exactly. Now I will say what’s interesting Tony in addition to civil rights and we were shocked about animals. If you actually look at 2022 now, animals and animal rights is always no matter how we randomly, by the way, we randomize the list for every person that’s taking it and our panels were like, there’s no way animal rights is gonna come out and it’s surely it does every, every single time. So I want to go back to something that we started to see, I will say probably latter part of 2020 into the, into 2021 and but it shifted a little bit further now and that is, is that a lot of the social issues that they were being engaged with were very personal issues as well. Um, in 2020 and into 2021, we would consistently see things like wages, jobs, employment issues that they were wanted, that where they were going with it, health, by the way, healthcare and premiums and health in general has always been an issue of interest And um, and into 2021, it was kind of there, but not it was, you’re seeing the top three, but it was in the top 45 and six. And she’s kind of hovering around there and when we see civil rights and those kinds of pieces coming in, we’re always looking for were there moments as well and that was kind of going back to that there would be maybe heightened things that occurred in moments or that there was something in the media, there was something that in culture that was also happening. Um, but what’s, what’s intriguing about, say, a gun safety or gun rights coming in there are the conversations, is, is that some of those will be momentarily types pieces when I think about it, I look at it and say, what are the things that that young americans are personally being affected by and how has that changed? And when I see things like healthcare still getting in there and wages and employment in the top five and six, that’s an issue when I look at things in which that they may personally, but also just social issues in general, animals, civil rights and sort of the gun space tends to be consistent over the last couple of years and it wavers now in october Climate was in the top five, but again, I only listen to the top three

[00:11:53.98] spk_1:
climate was I was gonna, I was gonna ask about climate, where where’s because I’m, you know, I’m seeing the top three in the,

[00:12:01.56] spk_2:
in the report,

[00:12:02.31] spk_1:
where’s where’s where’s climate change? The climate crisis?

[00:12:05.24] spk_2:
Because yeah, the expectation would be this population is very interested in reminder

[00:12:11.31] spk_1:
Reminder. Listen, we’re talking about 18-30 year olds, exactly. They’re gonna be around blowing, they’re gonna be around a long time.

[00:12:26.84] spk_2:
And you know, I was at cop 26. So we, and by the way, every quarter besides our regular battery of questions that we have, we asked, um, questions that are most likely going to happen or moments and things that are gonna happen in that quarter. So in october when we fielded, we focused on climate. So for anybody who’s in the environmental space, make sure you look at the, the october release of last year. So in preparation for cop 26

[00:12:43.94] spk_1:
my folks went top 20, let us know cop 26 there in

[00:15:11.14] spk_2:
slider Yeah. The Global Conference on Climate, Yeah. It’s technically called the Conference of Parties, but you can go back to what that all means in general later. But essentially, everybody got together in Glasgow to talk about the commitments that were made out of paris and then commitments forward and where the country is really stood and and there’s a lot of policy and a lot of other things that need to occur. So in preparation our partners and others asked us to make that October one focused on climate and the environment and climate and the environment throughout the year has always been and maybe it’s it’s always in the top 10, sometimes it’ll pull in the top five in the top five, but never in the top three, it’s always five or six. And so forth. The assumption is, and this is something that I talked about actually in in I was referencing climate as well as many other issues at times that sometimes the media narrative about very active young americans generalizes the general population’s perceptions of what young americans are really involved in. Right. And so when we see that, and this is the same thing that happens in maybe high states of polarization where you have the pro and the anti side there, you know, voices become louder and louder even though their numbers may not be as loud in general too, because, you know, we we actually did research for an organization that’s involved in the gun space and the thunder. And one of the things that were quite shocked about is they didn’t know things they didn’t know the individuals from March for our lives and in the climate space, they didn’t know Greta thunberg either. But there’s an assumption because our media kind of takes that perception that they’re young people being incredible movement leaders, therefore they’re garnering people involved and they are, but that population tends to be those that are active already. So they’re not skewing the rest of the data consistently. So what you end up having and this is what we have in climate in ours is we have a large swath of young people sitting in kind of this middle position, which are not necessarily incredibly overly active, but they’re, they’re what I would call probably more their climate conscious, but they’re not climate active and they’re, and they’re sitting there and that’s what happens on these issues when they sometimes rise to the media attention that they get, is is it doesn’t necessarily equate to participation, but we perceive it is because we’ll see a march rally or protest and assume that that’s what all young people believe.

[00:15:18.94] spk_1:
Yeah, right? There’s a, there’s a bias around the moment

[00:15:22.44] spk_2:
always

[00:15:23.05] spk_1:
because it’s now it’s now it’s in our, it’s in our ken it’s been brought to us. So, you know, it’s an enormous moment, not reflecting the larger context over time. Alright.

[00:15:40.04] spk_2:
And, and in climate is one of those that consistently is in the top 5-10, but it, but it hasn’t even in october it barely made it into the top. So our top five. So I would say that if you’re getting national representative samples really spending time making sure that you have a good set subset of the american population, you’re gonna realize some of this stuff happens this way.

[00:17:01.64] spk_1:
It’s time for a break. Turn to communications thought leadership, do you or your nonprofit want to not only participate in conversations around your work, but lead them lead the public dialogue. Wouldn’t it be fulfilling to have media call you to get your opinion on breaking news. It takes time to learn that credibility, no doubt. But turn to, can get you started and can get you there. Thought leadership, turn to communications, your story is their mission turn hyphen two dot c o Now back to influencing young America to act you, you focus too on actions that, That the uh, 18 to 30 year old set take. And I see signing a petition is very common. That’s a, that’s sort of an easy, that’s a pretty light lift action to take. But it’s pretty consistently and in, uh, it’s pretty consistently number one, at least in 22 and 2021. It was

[00:17:10.24] spk_2:
so, so

[00:17:11.26] spk_1:
signing petition, you know, it’s very likely you can get somebody to do that.

[00:18:05.14] spk_2:
And we, and we have to think about this. And I mentioned the phrase, the path of least resistance. We have to recognize our brain is an economic system, right? It’s always, I’m gonna do the least to get the most in general. Right? And so if I was to say to you Tony, you know what, I know you care about this. I want you now to go out and volunteer 30 hours a month, are you in your brain is gonna be like, well how can I do something, but maybe not go that far? That’s, that’s their model of our head and how it works. I always enjoy saying, well, we wanted, I hear young people want to be on board and I’m like, I can show you the national panels that that’s not the case. You might have very active young people are surrounding yourselves, clouding that perception and judgment. So that might be the case, but the vast majority are not ready to be on your boards and nor are they asking too in general.

[00:18:38.74] spk_1:
You see, there’s the bias. Again, we have to be aware that it’s very hard to overcome this. What we see is not representative of what’s happening nationwide. It’s just, it’s just, it’s, it’s, it’s, it’s in our face. So we think, you know, we, we see a car crash and all of a sudden, you know, we elevate the likelihood of of ourselves being in a car crash we see and we see a tragic airline disaster and all of a sudden, you know, the risk of flying on a plane rises in our minds, but, but it’s still, uh, exponentially safer than driving a car. Exactly. It’s, it’s very hard to overcome the bias of what you don’t, I forget. I have a book called alternative interpretations of data based conclusions college, but it’s still on my rival hypotheses. So there’s a name for this, but it’s like consciousness bias or something. What exactly that, Is that what it is? Okay, Okay,

[00:19:02.74] spk_2:
well, and, and tony here’s the interesting thing because, um, I’m often invited to speak, you know, you know, I’ll go to a board or something, you know, big organization, big brand

[00:19:08.85] spk_1:
that’s in your, it’s in your bio, you start after, it must be true.

[00:19:20.34] spk_2:
It is, it is. And and what’s interesting about that is I’ll often get the um, I know all young and I’m like, oh even starting out, starting out, I can’t

[00:19:26.08] spk_1:
even agree with your premise, let alone your

[00:21:27.34] spk_2:
Question. And you’re always going to hear me say according to our sample, according to because even though we have a representative samples constantly, you know, we’re fielding literally in this moment, Tony is supposed to end in about 15-20 minutes after we get off the call. Like I’m going to look at that my team will too and be like, here’s what this sample is recording as well. And I think when you look at our action because I want to get back to this because this is very key, especially for organizations that desires say funds, they desire heavier volunteerism, high expectation enrolls from young people. They are interested in those there is no doubt and so is the american public. Everybody is right. Are empathetic desire that’s coded within our brains to is saying you should that’s a good, you should be doing that as well. But we don’t start there. We usually ease into it after we overcome the path of least resistance and I talked about this a lot in both my book and some other stuff that we’ve done, which is that the first part of engagement is historically the path of least resistance. Where the brain says you should stand up for this or do something because it’s wrong, right? It conflicts with values and beliefs signing a petition is that way right? It’s telling the brain is saying at least you put your name to something, you can at least be honored in that way. Right? Then the second part of that really kind of comes down to that you see others who believe like you and are a part of it. And that is where peer engagement is very, very key because they don’t create relationships with the organization, they create organisms, they create relationships with the others and people around in the community, the movements, the constituency and so forth. Once we get some past some of that, then we start to get into heavier and deeper engagement and so on. But organizations really love to circumvent all of that and go right to the front and for some reason. And this is sort of my little uh um challenge to those that have an opinion around small passive acts because signing a petition

[00:21:29.21] spk_1:
to the collectivism argument

[00:21:56.14] spk_2:
and I have heard every argument about it and I always, when I’m sitting there listening content, li about it, I often say to them, it may not mean anything to you, but it means a whole hell of a lot to the person doing it. And it is a step in many steps to get involved. You should take that as an invitation to do more and and not expect that people have to be a donor immediately in order to be relevant within the organization because they don’t do it that way. They think any action I do for you. You you value it and you believe it’s important and you’re inclusive with it. And that is super key that we have to reinforce.

[00:22:42.34] spk_1:
Yeah, that’s very good looking at it from from the perspective of the person who took the action that was requested. Look, you asked me to do something and I did it. You know, I’m committed, I’m committed, you know, exactly in their mind, I’m committed to the cause. Now, all right. Now, if you want to convert that into volunteer time or come to come to a march or donate, you know, that those things are possible. But in the person’s mind, they’re they’ve they’ve they’ve taken a commit, they’ve made a commitment to the organization. And, and now it’s up to the organization. If you want to try to leverage that beyond, you know, beyond what some considered, uh, an insignificant act.

[00:23:28.04] spk_2:
And that’s the hard part. Right? So, I mean, that’s the hard part of digital marketers engagement and constituency managers who have to and sometimes I find haven’t done the hard work to take somebody who raises their hand and says, yeah, I align with you petitions are alignment, right? Yeah. It allows you to pick somebody out of a crowd and say these people align with the belief that we shared. So it’s our job now to develop the journey, go through it and so forth. But I find we spend so much energy in the intrigue awareness phase of many campaign efforts that we fought, and it’s like, oh, you know, that’s the wind. And I’m like, no, no, no, no. That was just successful to get to the wind, which will be later. That was the moment their milestone.

[00:24:26.54] spk_1:
I see a lot of interest in uh, I’m I’m not I don’t think I’m using the the uh the caption that you use the type. But I see a lot of interesting human rights, you know, Black Lives Matter, um, a woman’s choice, um uh housing, mental health, mental health, This is sort of transitioning into what, you know, you talked about at the outset. Um, I see a lot of interest in human rights and and I consider mental health and treatment for mental health, of course, you know, a basic human right? So I see a lot of interest there, I was gonna say sympathy, but, you know, you’re a researcher, so you might not like the word sympathy, but I see a lot of interest in basic human rights

[00:25:56.84] spk_2:
throughout, and I will say that if you pick up any of our reports, you’re not going to be shocked by seeing any of that, it’s consistent and it’s not just with this, your others. And what’s interesting too is that our social issues become our political issues and political issues become our social issues consistently and it’s not just in this year’s throughout right. If you were to look at and in the report, we talked about, what do you think needs to be in the biden plan that he proposed, which is to build back better or what was even asked what’s missing or what was necessary. And the things you mentioned are always kind of not just in this. I mean that was the one set question that we asked in the fall, but we’re always asking the question, what do you think the country needs to focus on? And they tend to be the same social issues and political issues around the human rights, the condition in which that the person isn’t right, mental health, affordability, employment, and wages, because these are the things that they see themselves when they see their peers also challenged with in general. Um and we have to remember the 18 to 24 year old, right, this will be your older gen z um and versus your 25 to 30 year old, which is in our sample. So we got both young millennials and older gen Z ers in here. Alright, if you look at wage, you look at all the other challenges that they’re dealing with in the formative years which includes now having for those 25 to 30 year olds, now having to pay for health care or hopefully getting it subsidized to companies for the 18 to 24 year old jobs wages, employment college.

[00:26:02.08] spk_1:
These, these folks graduated in the pandemic.

[00:26:48.54] spk_2:
Exactly, exactly. So again, this is one of those where I’m often saying, we have to understand the contextual, social, cultural, economical and political setting in which the person is taking this questions these questions from us because social issues don’t live in the vacuum and they become our issues, they become our politics, they become our values and our beliefs and so you’re going to see that thread consistently and someone said to me, I love, you know, we, we share this with them, I’d love to see all the social issues, like I got everything in there, from medical research to health care to you name it, because if we say, well, no, that’s a political issue I’ll say. But you’re not looking at it from their perspective, in their perspective, they see these as issues affecting them and there are places that they can go to to address it,

[00:27:07.74] spk_1:
let’s dive in a little more to the, your mental health findings. Um you know, you said at the outset, it’s because people have experienced their own Incident of depression or or you know, some other mental health issue or experienced it personally or they know someone who has it is it isn’t like uh is it one out of 10 is has been personally affected or know someone?

[00:27:27.34] spk_2:
Yeah, 56 actually, yeah, yeah, it’s substantive and this again was

[00:27:30.79] spk_1:
50, I’m sorry, do I, 56,

[00:27:33.04] spk_2:
56 had personally been affected or know someone who has affected 56%.

[00:27:37.10] spk_1:
So it’s over half I was

[00:28:58.64] spk_2:
confused. Okay, okay. But here’s here’s the thing that uh as I mentioned at the up front and I’ll reinforce here, which is that this has, this has been growing and it’s been consistently growing because this is not the first, we’re just now calling in a special section at the end of this year because we we we are looking at the researchers back pre pandemic. I mean we started our studies five years ago and now we’re in our fourth or 5th, 4th to 40. I’m sorry for you. We published four years ago, we started five contests a little bit of time and then um you know where we are now and it’s it’s just continuing to go up in general and I think this is something that we have to recognize and what I also find interesting because this is the first time that we asked, what do you think? Because this we sometimes never ask the people who are being affected what they think the solution should be in general. Right. So we asked them like what are the top solutions and you see here one of the top one, if you remember earlier, tony we talked about what we’re one of the issues health care premiums. One of the key things that they said, 46% of them of our sample, overall ensuring adequate mental health insurance coverage and treatment options for the uninsured and underinsured. That is, that goes to tell you something about a group of a cohort of, of a generation in the middle of a pandemic, you know, going through this and I think that that’s really key for our leaders to understand

[00:29:11.64] spk_1:
And then right behind that at 45% requiring insurance companies to cover drug and alcohol addiction treatment.

[00:29:23.84] spk_2:
Exactly courtly. That’s the fact that health and healthcare premiums were a major issue concern. Yeah.

[00:29:24.64] spk_1:
So this, this is a very compassionate group and, and has been for years as you, you know, you, so I like that, I appreciate you bringing in the larger perspective beyond you know, the year that I’m looking

[00:29:35.16] spk_2:
at this

[00:29:36.56] spk_1:
is this is uh these are, these are tender, compassionate folks.

[00:29:41.14] spk_2:
Yeah, absolutely. I well, very

[00:29:44.82] spk_1:
Uplifting to me at, at 60 years old. It’s very uplifting.

[00:32:01.94] spk_2:
I think that every generation is obviously going through their unique cultural, social political moments in which shape their values, right? And beliefs in what’s happening this generation is, you know, our younger gen z, our oldest gen, z’s are 18 to 24 year olds are getting out of high school in the middle of a pandemic going into college, you know, having these kinds of experiences that we’ve all had over the last 2 to 3 years. I think that what you are seeing here, especially in the 2021 compilation here, is that there there’s some struggles and they want, they want to help others because they’re personally affected by a lot of this stuff. And I think that if you look at this and say, well I don’t see things like other nonprofits are working on, it’s because this is the situation they’re in and that shapes one’s perception of what needs to be helped because they’re the ones also in the same camp of ones that need help in general. I’d also make another kind of comment around the compassion pieces that, you know, when we did the 10 years of the Millennial Impact project with the Case Foundation that I led that research for, we would consistently see patterns like this too, But wasn’t what was interesting in that one, although we didn’t ask things around mental health, although it would have been very nice. Now, looking back, you know, as a researcher, like it would have been great if we would have tracked that for 10 years, but we always tracked actions, participation issues and so forth. And the issues have always been somewhat similar somewhat. There’s some differences, Social justice versus civil rights were often in that sort of top three and so forth. But what hasn’t changed is sort of this desire to help their fellow appear because of them going through a situation like I remember there were 2 to 3 years the millennial impact project. This is probably studies like six years ago, seven years ago, eight years ago where it was debt getting a job and employment because they’re trying to come out if you look at it, you know, millennials are trying to, we just have retirement issues that we have a big boomer generation that still hadn’t retired. So you get forces that challenge employment and then you have millennials who are the one of the largest generations coming out of university, you know, Underemployment and then unemployment as well. Right, So these things affect when social issues and I don’t think that we’re, we’re kind of to our point throughout this conversation is that when you look at the perspective the person is going through, it’s not surprising to be seeing them say I want that person to have either what I have a little bit of or when I’m being affected by two

[00:33:57.74] spk_1:
very uplifting. It’s time for Tony’s take two. Oh, thank you for indulging me over the past several weeks, I’ve been promoting my plan giving accelerator class, the class starts this week all is well with the class very fulfilling and next week I’ll start promoting the next class through july No, that’s not true. So, but thanks for listening to plan giving accelerator commentary by me, um, I love doing the accelerator, I like seeing big robust classes and that’s why I promote it so much. I want there to be a lot of peer learning in which there always has been and there will be in this class too. So, so thank you for for that indulgence that’s all. And that is Tony’s take two. We’ve got boo koo but loads more time for influencing young America to act with Derrick Feldmann. I gotta ask about um, I’m gonna caption it preserving democracy. Does that, does that appear? It’s, it’s not in the, it’s not in the top three that, that this report talks about. But is there, is there that, and I’m aware of your admonition, you know, that’s not a political issue. It’s a, it’s a larger, there’s a larger context to to it, but does something like that appear as an as an interest, the concern about political polarization, democracy,

[00:34:39.14] spk_2:
it’s, it didn’t hit in the top. Um, I will say that we, uh, in the fall of last year, if anybody wants to take a look at our reports at the beginning, all the way up until the election um, are reported because we, we had, we were asking questions around voting, democracy, participation, civic and so forth. There’s some stuff in there, but it was isolated a little bit, but when, when it’s in, when it’s in the rest like democracy voting and other issues, the large battery to select from. It’s, it hasn’t been in the top, it hasn’t. I know,

[00:35:24.94] spk_1:
uh, you know, it’s okay. I’m, I’m not, well, I’m a little disappointed, but I’ll be all right. You know, it’s, it’s still the compassionate I dubbed them uh, I was taking my notes that the compassionate cohort. So I’m, I’m still, I’m still largely upset. Okay. Goes to the older, yeah, the the older set. Well, well, we’re working at it too. Alright. I don’t like to go too far into politics. I just, I had to get my own personal question. So what about what, what can we say for, for nonprofits that work in spaces that you and I haven’t even talked about. Uh, I suppose they work for a medical cause. Um, anything that we haven’t, you know, we haven’t, we haven’t touched on, Do I presume your advice is don’t surrender 18-30 year olds. It’s just that you’re not among their top three or five issues, but don’t surrender the cohort or or what, what is your advice? I don’t want to.

[00:39:30.82] spk_2:
Yeah, I had somebody I was thinking this is pre pandemic, big conference speaking engagement. Somebody raised their hand and said, you know, I work for a cancer support organization and basically you’re saying I’m, I’m done and I’m like, no, I’m not, no, I’m not, I, you know, we have to recognize that this is the formative years that somebody is going through and what I always say to people to is When I think about an 18 to 30 year old in their social issues is that it’s it’s like going into a big, large space with so many options to choose from and there’s so well in tuned to get to any of those options and they’ll participate here and there and so forth. But what you see here is sort of the underlying interest in general, those things change. And by the way, we know this from our research, both millennial impact project and now those things change when someone is responsible at work for other people meaning their own management, those things change when we have spouses and partners and families and people that we have to support those things change when we make more money in advance and careers and those things also change the more educated we are in general. And so what we see right now is the interest that underlying a lot of this participation with both of those cohorts that I talked about, but it but it changes, it changes over time and as we, what we do know, even when you look at say, a boomer or a greater generation, the greatest generation or others is that it starts to narrow over time, right? It’s not so big in general participation. But what I would say is is that that, you know, I look at the mental health space and I know that there are a lot of organizations that address and touch on mental health, like there’s youth empowerment and youth organizations that do address mental health in general. And I also know from the guns issue that they the gun rights issues and you know gun safety, they work in the mental health space at times too, and for those that are wanting to attract and engage an audience, I always say to is that to what end is it just because because and this is what happens with those that might be infatuated with trying to get younger demographics because they see a data point like, you know, everybody is retiring and the transfer of like all this stuff that’s in the data point section of um, an article about older people and where the money is going to go and so forth, and I say to them, well before you focus on an 18 to 30 year old, do you have a, how effective are you with a 30 to 40 year old? How effective are you with the 40-50 year old? And what I find is is that we’re always looking for the silver bullet to engage young people, but I before that every organization has to figure out if their engagement model really works and people are really engaged regardless of age. And then you have a second thing to look at that and say, okay, if this is the case and we know their participatory, they’re taking actions are doing digital actions, doing somewhat of a passive activism and some other ways they’re getting deeper involved in things. We probably have roles for those kinds of people within our community. And so let’s create those and we may focus one or two times throughout the year to target that audience to help us out. But I’m not gonna make it about them, I’m gonna connect them to our larger thing. You know, for example, if I’m an organization that wants to get attention for something that we’re doing with our beneficiaries, with our donors have come together, you know, make it around the policy policy and activism style piece and get that we’re gonna get that population to engage with many other generations on it. It’s when we start to create siloed pieces that we get ourselves a little bit in trouble or like we’ve got this young person thing over here where I’m like, well, You know, no one looks that they are not going to say I’m doing this because I’m a young person. They’re doing it because they believe and regardless if you’re 18 or 80, you can still do and believe in the same thing and perform the same actions.

[00:39:44.42] spk_1:
Thank you. Okay. So it’s an encouragement and but don’t be, you know, don’t be chasing data points.

[00:39:51.42] spk_2:
I don’t Yeah, I mean

[00:39:57.02] spk_1:
don’t have don’t have board meetings. Look, you know, there’s research that says 18-30 year olds are interested in in a piece of what we do. You know, let’s create a program.

[00:40:02.61] spk_2:
They

[00:40:03.48] spk_1:
stay true to where you are. Look for points of overlap.

[00:40:19.51] spk_2:
And there’s some great consultants out there that love to pick up on this thing. Like they’ll probably look at my report which I know who they are. They look at the report and say, look, we’re pretty he’s promoting young engagement. Actually, that’s not the case. I am promoting that we engage people as you should be engaging anybody, anybody. And you need to master that before you start knitting segments. Because it would be the same thing to say if I read a report and said, you know, 50 to 60 year old people from this state are going to give more. You wouldn’t say in a board meeting, let’s create a strategy to go get that. No, no, no. Like what is our overarching plan and how do how does anybody fit into that in general?

[00:41:04.81] spk_1:
Yeah. Stay. Stay true to your mission. Always take a breath, your mission, your values. You know, center those maybe some there may be some things you can learn here, but let’s not pivot based on on the influencing young America to act.

[00:42:01.80] spk_2:
Study. Alright. No, but you should say is you know what we’ve got an upcoming event, our campaign efforts. How do we create in a way that also invites them in to be participatory that’s different than saying we’re doing it for them to say. And that’s that’s where we got it. Well, that’s the strategic thinking that we need back in place. I mean I work with brands in America that you all that, you know that our youth consumer brands that this is there like they are squarely in this space. They they have to I also work with large nonprofits or global nonprofits that this is also their target audience. They don’t do work outside of this. They focus on the formative years, you know, and I’m like got it. But for those that are very big that have all generations that they are, they’re not to appeal to one or the other. I mean, who’s going to say? I appreciate, I I don’t want your money versus this money, you know, you desire to get any dollar that kind of comes in as well. Okay,

[00:42:03.70] spk_1:
let’s uh let’s leave folks. Well, first we gotta say, where do you get, where do people get the influencing young America to act?

[00:42:12.10] spk_2:
Study? Yeah, you can see all this report that you’re talking about, which is the culmination piece from 2021 as well as all of the last four years at cause and social influence dot com and dot org. Either one will bring you there

[00:42:23.24] spk_1:
cause and social influence

[00:42:25.71] spk_2:
you dot

[00:42:26.20] spk_1:
com or causing

[00:42:27.57] spk_2:
social influence

[00:42:28.43] spk_1:
dot org

[00:42:29.70] spk_2:
either way. It’ll work out, You’ll get there either way.

[00:42:32.40] spk_1:
Okay, causing social influence. Alright, yeah. Alright. Derek, what? That was pretty inspirational, you know, I’d like to end on a upbeat note, thank you. But is there anything we, we haven’t talked about that you’d like to, you’d like to mention?

[00:45:20.69] spk_2:
Um I would say one thing and we touched on a little bit and this is something that we are spending a lot of shoot Alright, tony um please pretty good. Um and that is uh and this kind of goes to the bubble that sometimes we live in in general and especially when it comes to the spaces of like who’s engaged with us, who isn’t, who’s involved and so on and the word engagement is so fluid, everybody has to define it for themselves. But and I wrote a recent article about this is that a lot of people, young americans, all americans um are kind of sitting in this a place where they need nudging, they need nudges, they need that that piece to get them involved in something. And they’re also not sitting there attending rallies that we think they are going to every protest, you know, doing all of these kinds of things that sometimes we perceive them to be that that if you look at at the end of the day, we have empathetic, compassionate, interested people in the social issues that personally affect them and the people around them. The real question becomes is how do we get past those that make the loudest noise and participate the most to get to the people that are sitting a little bit outside on the sidelines, waiting for that right moment in that right nudge. And that’s where you should be spending your time creating the campaigns and the efforts. And we have been specifically looking at, you know, and and even we’re talking about in the, in the next year to to next year, this year to um start to exclude those that are overly active. They skew the way we think about data as well. Uh you know, we’ll report on them, but say, you know those that are performing tons of actions a month is your Uber involved person. And once you throw that in there, just like you wouldn’t throw in the $100 million donor on your analysis of all the people that gave 0 to 100 it’s gonna skew things the way we look at it in general and so you have to do and be incredibly diligent to take out those that are overly involved and really center where you’re trying to go to, you’re gonna find that those people are are want to be informed, they really don’t know you, they probably have never heard about you and are looking for that moment in that nudge to probably do something that’s different than what those people who are surrounding you. Tell you.

[00:45:41.39] spk_1:
Terrific, good and great insights. Thank you, I am too. Thank you. Thank you for terrific ideas. Derrick Feldmann. He’s at Derrick Feldmann. Remember to ours to ends. Thank you very much Derek.

[00:45:42.52] spk_2:
Absolutely,

[00:46:14.78] spk_1:
absolutely. I will. Thank you next week. We don’t have any more Derricks. We had to Derek’s in a row. No more Derricks. But how about AmY sample ward visits To talk about the 2022 nonprofit technology conference which is coming up in March. Many support visits, visits. Sounds like mr Rogers, I’m too Who writes this copy? I I need an intern so I can blame for this visit copy. It’s there. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. I do need I do need an intern to blame. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o.

[00:46:49.08] spk_0:
Our creative producer is Claire Meyerhoff. The shows, social media is by Susan Chavez. Marc Silverman is our web guy. And this music is by scott stein. Yeah, thank you for the information scotty. You’re with me next week for nonprofit radio big nonprofit ideas for the The other 95% go out and be great.

Nonprofit Radio for January 31, 2022: The 40 Laws Of Nonprofit Impact

Derik Timmerman: The 40 Laws Of Nonprofit Impact

We can’t hit all of them, but that’s the title of Derik Timmerman’s book. He’s got advice like “give to gain,” “hire with ruthless selectivity,” “win while you’re sleeping,” and “eat last and get dirty.” We’ll talk about these and other ideas. Derik is the founder of Sparrow Nonprofit Solutions.

 

 

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[00:00:10.04] spk_0:
mm hmm. Hello and

[00:01:59.04] spk_1:
welcome to tony-martignetti non profit radio Big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast and I’m glad you’re with me. I’d get slapped with a diagnosis of paragon on my Asus if you infected me with the idea that you missed this week’s show The 40 laws of nonprofit impact, we can’t hit them all. But that’s the title of Derek Timmermans book. He’s got advice like give to gain higher with ruthless selectivity win while you’re sleeping and eat last and get dirty. We’ll talk about these and other ideas. His company is Sparrow nonprofit solutions On Tony’s take two 50% off planned giving accelerator ends next week. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot C o. It’s a pleasure to debut on nonprofit radio Derek Timmerman, he is founder of Sparrow nonprofit Solutions, a nationwide consulting firm helping nonprofits maximize their world changing impact. Before Sparrow he was a management consultant at Mckinsey and Company and the U. S. Army intelligence officer with two combat deployments to Iraq. The company is at Sparrow N. S. That’s Sparrow november. Sierra in military talk dot com. Sparrow N. S dot com. Derek Timmerman. Welcome to nonprofit radio

[00:02:01.69] spk_2:
tony it’s a pleasure to be with you. Thanks for having me.

[00:02:06.84] spk_1:
It’s my pleasure to have you. Thank you and thank you for your

[00:02:08.64] spk_2:
service. Thank you for that. I appreciate it. Absolutely.

[00:02:11.03] spk_1:
You’re one of our West point alumni as well

[00:02:14.58] spk_2:
that’s right that’s right Yeah so any navy fans out there? I’m sorry about that. But uh,

[00:02:22.44] spk_1:
Um, yeah, I’ve been there. I have a nephew who graduated there. I think he was 94. Okay, 90 for the year to score something. You have a little, a little jingle that goes with every year. I think he was like

[00:02:34.97] spk_2:
we do, Yeah. And an impressive that you know that, so mine is uh, pride and all we do 2002. We were actually the bicentennial class. So the thing was founded in 18 02. So they called us the golden Children all the way through that because it was celebrated that we were the 2/100 anniversary class of, of West Point. So Pride and all we do. 02.

[00:03:05.14] spk_1:
Okay, outstanding. And you just made me realize my, my nephew is much younger than that. So it ended with a four, I would say 94. It was probably 2,004,000. So what I was wearing, he’s, he’s much younger than you and

[00:03:10.74] spk_2:
me, which, which means, which means he might have been there when I was there and I as a, as a senior or junior, I might have given him a hard time. So apologies if he’s listening and if, if I, if I made him do push ups or something, I don’t know.

[00:03:27.94] spk_1:
All right. We’ll shout him out. Jacob, Jacob Weber. Okay. Yeah. No, I, I, and I witnessed, what are the, uh, I witnessed some of the the rehearsals for a day a day is the very first day right acceptance or a day. Is that the very first day that the new cadets, the first year

[00:04:04.34] spk_2:
cadets register now? You’re really stretching my the other day reception day. That’s what it is. Yeah, blocked it out. It’s a memory that you know, honestly tony It’s a difficult thing to dredge up my friends. So yeah, but our day reception day that was a significant emotional event for sure. Okay.

[00:04:05.72] spk_1:
And so from the, from Mckinsey and the and the and the United States Army, why sparrow nonprofit services Sparrows to me seems so frail. Uh they don’t have long life spans. Why why set me straight? Why is it sparrow nonprofit

[00:05:15.04] spk_2:
service? Yeah, I think it’s a great question. I love this question. Uh, so I I’m a person of faith. My faith commitments are very, very important to me. And there is a biblical passage. Uh, that goes something like uh you are worth more than many sparrows kind of talking about the fact that um our creator sees everything every part of his creation including you know the smallest tiniest sparrow and we as people are worth more than many sparrows. So I wanted to give nonprofit leaders sort of that sense uh in all the work that I do uh that they’re seen their valued, they’re not alone and they have worth because it’s as your listeners, I’m sure know who our nonprofit leaders, it can be, it can be a lonely thing. So that’s why the name Sparrow is to bake that into the heart of everything that we are into.

[00:05:21.04] spk_1:
Alright, thanks. And they are our listeners. Derek, please our listeners. And and I cited the company were incorrectly Sparrow nonprofit solutions.

[00:05:30.39] spk_2:
It’s not

[00:05:31.41] spk_1:
mere services, services, any Schmo can provide services. Sparrow. Sparrow provides solutions. So,

[00:05:39.34] spk_2:
alright, let’s let’s talk about

[00:06:02.84] spk_1:
The book. The 40 laws of nonprofit impact. I’ve got, I’ve got a bunch that I would like to talk about, but I don’t know. I’m feeling generous. I’m feeling a little anarchic today. So I’m gonna, and listeners will know that this is outside what’s what’s typical. I’m gonna throw it to you first. You you pick a you pick a law, You have 40 laws? Yes. The 40 laws were broken down into different categories. You you pick a favorite law of yours. What’s the one you like to talk about

[00:08:54.54] spk_2:
first. Oh my goodness. You’re asking me to pick one of my favorite Children. And this is, this is difficult, but okay, then forget it. I’ll go for it. I I got, I got one. Um, so the one that I find raises the most eyebrows with nonprofit leaders that I speak with and maybe provokes the most reflection and thought on their part. So that’s fun when, when I can have that impact is law number to define the win. Um, really what that’s all about is uh, gently challenging nonprofit leaders to identify what is the fundamental unit of impact for their non profit organization. So a lot of words there, but let me, let me sort of share a simple example if, if I was on my high school football team, I’m not a big guy. So there was a time when I wanted to gain weight to be on the football team, If that was my goal to gain weight, the fundamental unit of impact would be what? £1? A single pound. Right? So that’s the number of units I’m trying to replicate and grow in my nonprofit, um, similar, you know, if, if I’m at this stage in my life and I might have one or two lbs to lose the fundamental unit of impact would be losing a pound. So that’s, that’s kind of the idea is that within your nonprofit, what is that unit? That is the thing that defines the win. So it’s, it’s incredible to me how many nonprofits go through their day to day operations not knowing that or having a vague sense of a general mission without having that unit of impact firmly in mind. But once they select it, They’re able to say a vision that they want to cast for the next 3-5 years. So let’s say that you and I Tony I’m in Denver and Love Nature trails. Let’s say that you and I together wanted to found a nonprofit to preserve public nature trails in the Denver area. The unit of impact would be one mile of nature trail that we keep clean, pristine, uh, keep it, you know, preserved. Um, from week to week we go out on the trail and that’s the mile that we, that we preserve. Um, well, let’s say we get a bunch of volunteers to help us, uh, and set a goal of five years from now. We want to have 1000 pristine clean public nature trails in the Denver area that are cleaned. Uh, that’s our pile of units of impact that we want to have. We just cast a vision for our nonprofit that we can gear the whole organization to the board, the staff, the volunteers, everybody has that vision of 1000 miles of public nature trail there, Derek, I’m a

[00:08:57.70] spk_1:
Little, I’m concerned you’re already backpedaling because the book posits 2500

[00:09:02.27] spk_2:
miles. I know

[00:09:04.03] spk_1:
this hypothetical nature nature trail preserves, preservation, nonprofit. Now you’re now you’re, you’re back down to only 1000. What happened to 2500 goal?

[00:09:13.03] spk_2:
Well, so that’s, I’m in Denver now in the book, it’s in north and south Carolina. So there’s more trails in the whole two states to work with. But yeah, I think around Denver there’s 1000. But yeah, thank you for catching me on that though. You’re, I can tell you’re a close reader. I read the book. I read that and I appreciate it. That’s all

[00:09:33.19] spk_1:
right. We’ll stick with 1000 will be modest. It’s, it’s the start of 1000 miles in the first year

[00:09:41.54] spk_2:
deal deal. Yeah, but that’s, that’s what I throw out is, is defining a win and challenging nonprofit leaders to really define that fundamental unit of impact and what’s the pile of units that they want to achieve in 3-5 years.

[00:10:25.84] spk_1:
And that leads beautifully. The one that I would like to talk about, which is the law number three, which is, who already know who you are when you’re winning. Which to me sounds, I mean it’s, it’s, uh, well, not to me, it sounds like, but it’s your, you say it, it’s, it’s, it’s the values. What do you, what does, what does your, what does your organization stand for? Uh, you know, at the core, aside from what it wants to do, what does it stand for And you know, this stuff off the top of that, you know, you don’t need to refer to your encyclopedia of the 40 laws. You know, this, I’m not gonna, I’m not gonna stump you, I’m not out to stump you and uh, you wrote a book, come on.

[00:13:26.74] spk_2:
You know, I’m 100% with you. And um, what I, what I don’t say clearly in the book, but what it is worth mentioning here is these first four chapters, these first four laws or what I call the four questions and whenever I work with nonprofits kind of in a consultative basis, um, I love to kind of have this be one of the early conversations I have with them. And it’s a little bit of a different way of getting at the sort of age old in some ways tired and boring mission vision values strategy that we always hear about. I mean I came into my work with nonprofits wanting to sort of breathe some life some new life into those four things because it’s, it is, it’s easy to kind of have our sort of eyes roll back and just kind of get that glassy eyed look when the old mission vision values strategy conversation comes up. But the four questions that I throw out there are, why do you exist? What is winning? Who are you when you’re winning And how do you win? And that’s answering those. It gets to the right destination in a bit of a different way. In a way that involves people and results in an answer frankly that that’s different than just having the, the normal way that you might go about finding out what your mission vision values strategy are. The third question. Who are you when you’re winning is actually a way to get out the values of your organization and asking it in a who based way. It really unlocks some interesting thinking when I work with nonprofits. Um, one workshop that I love to do is actually Having six sticky flip charts posted around the wall of a room and asking the nonprofit to write down Name three men and three women in your organization could be volunteers, could be founders, could be staff write their name at the top of each one of the flip charts. So you’ve got these six flip charts around the room. Uh, Susan’s name goes on the top of one, jerry’s name goes to the top of the second and on around the room. And then everybody who’s participating in the workshop goes around the room with a flip chart marker and writes down everything they can name about the attributes of those people. What is it about them that makes them such an incredible embodiment of the nonprofit and by the end of the exercise, everyone’s crying. Everyone’s excited. Everyone’s thrilled about how great this organization is. But what’s what’s truly amazing is what what each of those words represents is a clue as to the values of the organization. Those words are who the organization is when it’s winning. And from those you can distill out what are the 5-7 Values of the organization? Having looked at the people of the organization 1st And then developing a check question for each, for each person to ask in a first person away for a moment to moment. AM I living out each one of these 5-7 values.

[00:13:47.34] spk_1:
I love this idea. That idea of starting with the people that embody the organization then what is it about those people? And then you find the commonalities across those. You said you do it with six. Uh, that’s, uh, that’s, that’s great insight.

[00:14:19.14] spk_2:
I like that. And it really, I mean it’s, it’s something I stumbled upon while working at a church, uh, some time ago. And what’s, what’s really neat about it is it avoids the trap of values that so many nonprofits fall into that, you know, they, they think about what’s gonna look good on a plaque or what’s gonna look good in the lobby or what’s gonna impress donors. What you’re actually doing is working from the bottom up and what you’re actually doing and who you actually are as an organization when you’re at your best and make and letting, letting the people doing the work as you say, um, speak to you about what the values really are.

[00:14:25.54] spk_1:
Now can those six people be in the room like, so can I go to my own flip chart and vote for myself and say charming, brilliant, funny. You know, can I vote for myself? My own my own flip chart

[00:14:37.84] spk_2:
only. You tony would ask a question like that. Of course. Yeah. Maybe we’d limited to three words on your own chart, but why not? Yeah, absolutely.

[00:14:48.64] spk_1:
And I can I can suggest adjectives for others to put onto my charger?

[00:14:53.09] spk_2:
Yes. Yes. Not happy about the adjectives that others use. but, but yes, it’s, it’s honesty. As long as honesty is in the room totally. Fair game.

[00:16:42.44] spk_1:
Okay. Yeah. But I’d like to lobby for my flip chart to be the longest and most effusive. It’s time for a break. Turn to communications. You’re 2022 communications plan lots of projects in there. Lots of writing. Which of those writing projects can you outsource to free up staff time to devote to the work that can’t be outsourced? Is your communications team too small for all they have to produce. Do they seem overworked and under resourced pity, pity their communications team. You can get them help. Turn to communications. Your story is their mission turn hyphen two dot c o. Now back to the 40 laws of nonprofit impact. You just have to get the book because we can’t talk about all 40 laws of nonprofit impacts. Not possible. We’re gonna skip around a little bit. So I’d like to talk about, you’re, you’re number six law give to gain, which reminds me of a, of a networking organization that I was in. In fact one of your, it’s either your footnote or one of your resources at the end of that law cites the is a book. I think I think it’s a resource you give by the, the founder of the organization. I was in Ivan Ivan Misner. Uh, the organization is business network international bien. I, I used to be in a B and I chapter in new york city. So, and he and the the uh, I guess so I suppose tagline of the organization was givers gain.

[00:17:19.24] spk_2:
I, I too am a B and I member. So I’m with you there and I am, I am even now, yeah, I’m a member of Gosh, it’s got to be one of the largest chapters in the U. S. Its 82 members. Can you imagine 82 members and a B and I chapter? Um, but for, for our listeners, um, I would say that that be and I is, is just incredible for nonprofits and they might have a deal these days about joining for free. So, uh, we can, that’s another topic. Another conversation. But yeah,

[00:17:54.34] spk_1:
just to just to put a little finer point on it if you have B. N. I. Business network and network, not networking. This network international if you have B and I chapters in your town. Uh, there is a uh, even though I’m not no longer remember, but I’ve been asked for by a couple of chapters who know me. Uh, each chapter is allowed one free nonprofit seat in its chapter. So you don’t have to pay the annual membership to join a B and I chapter. And it could be a very good resource. I, I found it very good for my business derek. You obviously find it good for your business, otherwise you wouldn’t be a member

[00:18:34.84] spk_2:
Of 100%. And the reason I recommend it to nonprofits is imagine 32 in my case, 80 individuals in your local area from all different professions, each with their own networks being a permanent week over week advocate for your nonprofit and your mission. Um, it’s almost like a ready made Salesforce marketing force, um, for, for your cause and for those nonprofits that I know that have been in B and I for three plus years, all of their volunteers, many of their donors, those who actually helped run their galas and events. A lot of that energy comes from from their B and I chapter so strongly recommended you

[00:18:52.24] spk_1:
Just did the purpose and overview portion of a weekly meeting at B&I was a member for 13 years in New York City. The only reason I left is because I moved to North Carolina. That’s the only reason. All right. So let’s talk about giving the game and, and, and I hope you’ll weave in vulnerability and

[00:21:23.54] spk_2:
generosity please. Absolutely. Yeah. So giving to gain is this idea that, um, if you, if you end up taking the approach with your non profit, not just to your beneficiaries, I think we all would say that with our nonprofit missions, we’re here to give to, you know, those who are the recipients of whatever our mission is. If we’re out to eradicate human trafficking. Um, you know, we’re are beneficiaries were giving to society by making sure that survivors are able to be restored. And uh, and that that those who are our victims are able to be pulled out. You know, of course, we’re giving to the beneficiaries of our organizations. It’s a little bit of a reach though, and maybe a bit of a new concept to think about giving to our board members, to our staff, to our volunteers, uh, to our prospective donors, to our existing donors. Everyone we interact with, um, in our organization. Um, we have the ability to do one of three things with them to either entertain, educate or empower. And those three things we can do with with every single person that we touch day in and day out. Whether it’s an email, a phone call, face to face interaction, giving needs to be the passion of every non profit leader. Um, and you mentioned vulnerability and generosity. Those are two of the main main components of how you can be a giver, vulnerability. Certainly in terms of, you know, approaching interactions in a way that, uh, that shows that you’re human. Um, I think authenticity is probably one of the most overblown, overused words. And, you know, there’s a dark side to authenticity in terms of, you know, just being a burden on everyone you come in contact with and and that’s not what we mean by vulnerability. What we mean really, actually is, is just showing that you have flaws, uh, that you’re someone who’s prone to mistakes, admitting those mistakes, showing your words and and letting the other person know that you’re human. Um, generosity. Uh, and really curiosity goes along with this as well. Is is training yourself to seek out ways to give, to look forward. You know, what is it that this person sitting across from me needs the most. I’m looking at you right now on zoom tony and I said I could see you could use some wall hangings. You know the walls behind you looking a little bare. So maybe I’ll send you something to hang on the wall here at some point. Just kidding. But

[00:21:42.54] spk_1:
I have my, I have my high, high hi tech art deco. Well not art deco, but uh, postmodern Hewlett Packard printer.

[00:21:49.68] spk_2:
It is, yeah, that, that is a, that is a nice printer back there. But, but hey, maybe maybe we could use a little bit more more on the wall. But you know what in every interaction. So there you go. Yeah.

[00:22:07.64] spk_1:
You recognize, I just tipped my camera, my screen up So that Derek could see, do you recognize that comic character?

[00:22:09.03] spk_2:
Uh, it’s a, what’s his sad, sad sam or sad. That’s beetle, that’s beetle bailey, beetle bailey. Okay, that’s assigned assigned original. Whoa.

[00:22:28.94] spk_1:
From, from mort walker. The uh, so well I’m, I’ve date myself all the time. I’m 60 years old. So I remember beetle Bailey in the comics, United States army

[00:23:15.54] spk_2:
was I know I noticed that beetle bailey. So here we go guys, this for our listeners. We, we can see here, I have a clue now of something that might be of value to tony in the future. Right. Just by looking at as well, taking a little interest, having a little curiosity. I, there may come a time here in the next month or two where here comes in the mail, a little cartoon for uh, for Tony to hang on his wall. Um, that can remind him of spare non profit solutions and keep him encouraged as he goes throughout his day. Just giving to gain, that’s the kind of thing we’re talking about is having just that little bit more curiosity than is common being that rare person who looks for ways to give and then the law of reciprocity pick kicks in where that person is. Uh, just naturally it’s the psychology of human nature is going to look for ways to give back

[00:24:04.04] spk_1:
somewhere in the book. You, you reckon you recommend. Uh, I think it’s two people a day, do something special for two people a day. And also try to uh think about how you can give something small to the people that you do interact with each day like you’re describing. You know, you don’t, you don’t need to send me any comics or I won’t reject it if you do. But, but uh, so you just, you, you got to get the book. You gotta get the book for the full breadth of the, the wisdom and the ideas. Um, and yeah, vulnerability. I, you know, too many people think vulnerability is a, is a sign of weakness. I think it’s a sign of confidence and strength that you’re, you’re confident and strong enough to to share your real self again without wearing your heart on your sleeves as you suggested, you know, and burdening people, but without not going that far. But vulnerability, I think is a sign of confidence and strength.

[00:24:24.84] spk_2:
It is, and it’s the, it’s, it taps into to the power of humor. I mean, I think one of the least mentioned and most underrated characteristics of leadership and impact for that matter is humor. Um, if you can make fun of yourself at the beginning of any talk that you give or fundraising conversation or uh, podcast that you joined, um, humor is uh, is one of the most disarming endearing things that you can do as a fundraiser and as a nonprofit leader. So vulnerability is a big part of that.

[00:25:16.94] spk_1:
I think I, I appreciate what you said about humor. Thank you. Um, I’ll leave it there. Said I believe. Well said, um, let’s talk about assembling if we could put these couple together assembling your dream team and running with achievers of character. You like the, the dream team to be uh productive. You talk about productive passion.

[00:26:16.04] spk_2:
Yes, absolutely. It’s from the very introduction. When I start to talk about talent. Uh and talent is one of the, He kind of red threads that kind of runs throughout all 40 laws of nonprofit impacts. Um, if I could wave a magic wand and wish anything on the nonprofit world today be different than the way it is. It’s that every nonprofit leader would become talent obsessed and I don’t use that word lightly. Uh you know, I one of the wonderful things about nonprofit leaders is what big hearts they have, not just for the causes that they serve, but but also for the people that are around them. Uh the flip side of that big hearted coin though is that we can unfortunately tolerate around us. Uh those whose talent profile may not be the best that would actually contribute to the advancement of our mission.

[00:26:22.10] spk_1:
Good enough. You know, you caution against making hires that are good enough,

[00:28:17.04] spk_2:
good enough hires. You got it. Yeah, I know it. When I, when I use the term talent obsessed, it is going uh more than 10 deep through a talent pool. When you put something out on indeed you see uh somebody on paper who looks like they’re good, they get in an interview, They answer some questions well and suddenly there in the nonprofit, well what you just did in in letting that person in the door without, you know, going deeper into the talent pool and doing your due diligence and giving that person a trial run of actually doing the work before they get the offer letter. Um, all of these things will greatly enhance not just your non profit in the near term, but they’re gonna impact the trajectory of your nonprofit organization way over the long term. So all the way back to your question about assembling your dream team is you’re always keeping an eye out for those people in your midst. Whether it’s just a volunteer who comes in to help with something, you see them approach their work of, you know, putting folding up the papers, putting them in the envelope, stamping them, sending them out. You’re watching. And there’s something that caught your eye while they were doing that work. The spirit that they brought to the work. The fact the way they’re interacting with the rest of your staff and the other volunteers. Just the vibe that they have their confidence. Um, you’re, you’re keeping an eye out for those kinds of talent, rock stars. And when you see that you actually make an effort to start to draw them into your dream team. This could be the case with prospective board members with major donors. Anything that might touch your nonprofit, you’re always trying to keep an eye out for who is going to be that inner circle that joins you to take this work into the future. Um,

[00:28:27.14] spk_1:
derek you when you were talking about and, and that may apply for volunteers as well. Maybe maybe moving someone from volunteer to volunteer leadership.

[00:28:31.84] spk_2:
It absolutely does

[00:28:36.17] spk_1:
clears the, what do you say the productive, those were productive passion

[00:28:42.14] spk_2:
mentioned

[00:28:44.16] spk_1:
10, 10 deep in an, in an interview process. What did you mean by that?

[00:29:56.84] spk_2:
So I I think we, we nonprofit leaders can have a tendency busy as they are to give up a little bit too early or to, uh, to settle, you know, for someone who is, you know, looks good on paper and you know, let’s give them a try in the role and start paying them. And the thought is, we can always go back on that decision. Well, No, it’s, it’s not easy to uh, change someone’s life to give them a job and they get into the role and then suddenly there’s an inertia into the thing where it, it is difficult to go back on that decision. Why not take an extra month or two and go 30 deep or 50 deep into the indeed pool something I I did recently with a higher inspire nonprofit solution was that was actually create a google sheet that has multiple tabs that actually gave them real work to do that they would be doing if they came into the role in my organization. That’s before the interview. Even so I haven’t even talked to this person yet. I see the indeed resume and they’re getting a link from me to a customized google sheet for them to go through and do the actual work that they would be doing within sparrow then and only then when they’ve completed the sheet and I’ve seen that they have the grit and the intelligence and the mental equipment and uh, the, the ingenuity

[00:30:07.14] spk_1:
also the commitment,

[00:30:08.87] spk_2:
the commitment

[00:30:09.72] spk_1:
you’re asking for, you’re asking for a time commitment before you’ve even interviewed them.

[00:30:36.94] spk_2:
I can’t tell you Tony how many, I can’t tell you Tony how many people I thought were rock stars that I sent this google sheets and they never even got a third of the way through the thing. And that told me good thing. I didn’t waste my time, you know, interviewing speaking with them. You wouldn’t believe how many nonprofit leaders don’t do. This is so yeah, this this easy step of just having them do the work. And yeah, this is part of being talent obsessed. And I commend it to every nonprofit leader

[00:30:50.24] spk_1:
and you’re standing by that. Even in today’s labor constrained market where a lot of people have left. Uh, it’s harder to, it’s harder to find people. You’re, you stand by the talent obsession. Even in the current labor market,

[00:31:05.14] spk_2:
I stand by it even more so I stand by it even more. So yeah, it’s no higher is better than a bad hire and whether that’s, that takes two months or six months. Um, you get the right people into your organization. This goes for board seats by the way. Um, even more so, But yes, you take the time that you need to get the right person in the role, especially in this talent constrained environment.

[00:33:03.24] spk_1:
It’s time for tony steak too. How long has planned giving been on your to do list? I can help you get it off The 50% off planned giving accelerator. It’ll never be cheaper. It’s never, never going to be less than this. 50% off. It ends next week February 7th. You can join the february class. The class runs for six months. Your commitment is an hour a week for six months and we will launch your planned giving program together. You get 50% off. There are still some slots left. A generous donor has agreed to pay half the tuition for 10 nonprofits and there are still spots left. If you’d like to get yours, you can send me an email, tony at tony-martignetti dot com. If you want info on planned giving accelerator, that’s at planned giving accelerator dot com. Let me know you want to get planned giving off your to do list. It’s never going to be easier. I’m putting it right in your lap. I hope you’ll be with me. That is tony steak too. We’ve got boo koo but loads more time for the 40 laws of nonprofit impact with Derek Timmerman that that makes me think of your Law # 11, which is higher with ruthless selectivity.

[00:34:27.24] spk_2:
That’s it. Yeah. And that’s, that’s kind of the thesis of the last, you know, five ish minutes of what we’ve been discussing, um, hire your staff with ruthless selectivity. Absolutely. But that goes for, uh, for the board as well. Um, uh, it’s, it’s a regrettable feature of the nonprofit landscape these days that so many board members are brought in, um, on kind of what you’re doing us a favor type thing is please please please join our board and we desperately need, you know, people with your skills. Um, oh, you’re an accountant. Oh, we need a treasurer for our board. Please join. Um, it’s not gonna be that much of a commitment. Oh man. It drives me crazy. tony It’s got to go. The other direction is, Yeah, this is, this isn’t, this is an 18, this is a varsity team. Um, we’re not sure if you’re going to be right for the board. I like that you have an accounting background. That is something that we could use, but that means nothing to us. Uh, if if you’re not willing to put in eight hours a month of time and energy and effort and have a purple passion for, for this nonprofit’s mission. So we’ll see. Um, but, but we, we hope it works out. But, but let’s do the dance and see where this goes to see if you might be, might have what it takes to join our board. That makes all the difference.

[00:34:33.54] spk_1:
You highly value personal referrals to folks, folks that are already close to the organization recommending,

[00:35:14.24] spk_2:
Oh yeah. And I’m enthralled by these examples like Zappos who have come out and said we’re not going to do job descriptions anymore. How cool is that to say that we’re not going to go the traditional route of just putting out job descriptions. Uh, and job postings out on the internet for all to see. We know what we need and we have great people. So we’re gonna trust those people to, to spread the word about the roles that we need and, and get those people into into a situation where they can interview with us, where they can go through some scenarios to see how they do kind of in the work itself. And yeah, we’re just gonna do this by word of mouth. That’s a, it’s a cool model and it’s working for him

[00:35:40.94] spk_1:
interesting. I am not aware of that, but I could see the value. It’s um, alright, it’s groundbreaking. Good. Yeah. I like, I like people who, uh, think outside, you know, just think differently. I don’t like outside the box, but just think just think differently and, and, and try it. You know, if they don’t end up getting enough applicants to their jobs, then then they can find another way they can pivot and, and think of something else that’s, that’s not just a typical job description on, on a job board

[00:36:32.73] spk_2:
and yeah. And I know that there’s probably listeners right now thinking I’m a I’m a tiny nonprofit. It’s just me, right, It’s I’m the executive director and that’s it. So derek, I get it. But where do I even begin with this? And I would say to the, to that person, just as a way of encouragement, uh it’s gonna take a lot of effort to get those 1st 123 rock stars aligned with you. But take comfort that it gets easier, the more that you build this dream team, the easier it gets to just add that incremental next person. So put in the effort, put in the work as slow as it feels to find that one that 1st, 2nd, 3rd dream team member and you’re gonna watch it get easier as time goes on.

[00:36:51.33] spk_1:
You also have advice about firing fast, letting people go when it’s not working out, Don’t, don’t invest more, cut your losses. Move on.

[00:37:32.33] spk_2:
Yeah. This is something I learned from my Mackenzie days, honestly from my working with Fortune 500 companies. When we would do these Mackenzie surveys of C. E. O. S and C suite leaders about the biggest regret that they have in their professional life. It was moving too slowly on poor performers, uh letting that extra six months or a year or two years or more go by. Uh just hoping that things would change and feeling like, you know, putting too much stock in what professional development could achieve. I do believe strongly that that people can improve and change. But there there is a base level of capacity uh to continuously improve. And if if you don’t notice that that is their uh the best thing that you can do for your organization and your mission is to act quickly on poor hiring decisions.

[00:38:12.22] spk_1:
I think a lot of C. E. O. S. Consider that an admission and an embarrassing admission of of a mistake. If I if I fire the person too quickly then it’s obvious that I shouldn’t have hired them in the first place. And now I’m admitting that I’ve made a mistake but that goes back to vulnerability, you know checking your ego at the door uh and just being confident enough to admit that you did make a mistake.

[00:39:24.92] spk_2:
It’s the gambler’s it’s it’s it’s the age old gambler thing. I was in Vegas once. I know that surprises you Tony, I know that you don’t think of me maybe as a Vegas guy, but I’m sitting at the roulette table. There you go. Yeah I’m sitting at the roulette table and uh this guy next to me has a confident look on his face and he put some money down on on red and he loses. Uh and he puts double that amount on red and I can I can see where this story’s going, I’ve seen this movie before, I feel bad for him but he puts double on red and he loses again and with each time that he puts money on red, he doubles it and he keeps getting this worse and worse, more concerned look on his face To the point where he’s lost six times and I can tell by the look on the guy’s face, he’s about to put his kids a big chunk of his kid’s college fund on red. It’s just, yeah, it’s awful. But this is what we do when it comes to bad hires all the time and I would just say walk away from the table and, and, and, and go do something else.

[00:39:31.72] spk_1:
Do you have advice to? And uh Law # 14 About using freelancers when, when, while you’re sleeping?

[00:42:02.00] spk_2:
Yeah man, it’s, it’s so exciting to be in uh, an entrepreneurial role like spare nonprofit solutions for nonprofit leaders that are small or mid sized to be in these roles. I mean Even more so than 10 or 15 years ago, we have platforms available to us today to access uh incredibly talented, fluent English speakers in the Philippines in India, you know, any country, even in the us who are willing to do incredible work for organizations while we sleep. These are called freelancers and the the two platforms, I’ll give three actually the three platforms I use most when it comes to freelancers are fiber Up work and 99 designs And imagine in 99 designs case you need a logo, you need a a new label design for something, you need a poster or a one pager. You can go in 99 designs and start a contest and have freelancers from all over the world designers who are incredibly talented competing to win your contest. So it could be $99 it could be 1 99. But rather than go out and going out and hiring a design firm, you can have this contest where freelancers are actually competing to win, you’re giving them feedback. So they’re actually doing revisions right there. So all of these folks are working for you and then by the end of it you’ve got an incredible product that you can, that you can then take into your nonprofit work. I’ve used this in list building all the time right now as well as you and I are speaking tony I’ve got three freelancers around the world building, uh, lists with email addresses, phone numbers, prospects. Um, and, and I know that here in a day or two, I’ll be able to look at those and use those for my, my marketing efforts. That’s what I mean by b have always have something happening while you’re sleeping. Um, These freelancers could be doing great things for you for $5 an hour, maybe less. Um, and you can even pay them for the actual project itself. I do 25 cents a row for my excel spreadsheet for my google sheets that I have them fill out for, for leads. So I don’t know. I’m not sure if your listeners could, could use 25 cents a road to have a fundraising sheet to growing while you’re doing other things. But, but I found it’s, it’s incredibly helpful to my work.

[00:42:14.70] spk_1:
And what are the three sites that you use again? Five? Er, I know I’ve used that one. So Fiverr is one

[00:42:20.74] spk_2:
Driver with two Rs. So if you are are up work is the 2nd and 99 designs is the third for anything visual or involving design, 99 designs is incredible.

[00:42:50.90] spk_1:
Let’s talk about some, uh, some of your laws that are intrinsic to, to the, to the person, like unleashing your unique strengths and and avoiding that. Focus on

[00:45:07.49] spk_2:
weaknesses. Sure, yeah, this is this is so near and dear to my heart that I wasn’t Mackenzie for six years and the second three years was doing a people strategy on Mackenzie itself. So it was actually, we did it. We launched an engagement not to serve an external client, but to say we’re going to sharpen the saw within this consulting firm. So we’re gonna do a strategy on how to be the preeminent place for the world’s most incredible talent and one of the main work streams that we ended up coming up with. Um and this is all research based, is making Mackenzie a strengths based organization and I took that to heart so much that I’ve taken it everywhere. I’ve gone to work with nonprofits as well. Because the thesis is this is that all of us came up in elementary school, middle school, high school and college with this grading system and the best you can get on most assignments is what 100, right? Yeah, that’s that’s the best score you can get. And uh That was the top thing that, that we could achieve. And anything less than that was points were deducted. You lose two points here, five points. They’re 10 points there if it’s late, that’s -10 or 20 or something. But, but that’s how we learned. What success is is not making mistakes. So here we are dumped into adult life and we’ve got this paradigm of, that’s that’s what success is. So we feel like job to job, task to task our goal is to what eradicate as many mistakes from our work as we can, is get rid of the weaknesses. Well, come to find out that the research shows that you can really only take a weakness From a, you know, a negative 10 to maybe a negative four. It’s never gonna stop being a weakness when it comes to being intrinsically, you know, who you are, the essence of who you are. Um, I will never be a really great gregarious, um, the person who can work a room, you know, that you

[00:45:08.04] spk_1:
say you say in the book a few times, that you’re an

[00:46:11.48] spk_2:
introvert, introvert? Absolutely, 100%. But um so I’m only gonna do so much to mitigate that weakness. If I if I spent all my time trying to to play the extroverts game, I would never be able to leave the impact on the world that I otherwise would if I had focused on my strengths. Because the research, same research also shows that you can take a plus 10 with the same effort or much easier than you took the negative 10 to a negative four. You can take a plus 10 to a plus 40 in terms of your strengths. So what am I going to focus on as far as leaving my impact on the world? I’m a pretty good writer. So rather than focus on going into all of these networking events and working a room, I still need to show up, I still need to do that. Um and but if I have a certain amount of poker chips to put on a certain place, I’m gonna put those poker chips on my strengths and make sure that weaknesses aren’t holding me back, but focus most of my time on my strengths and bring people around me that have strengths in areas that I have weaknesses.

[00:46:21.48] spk_1:
The man claims he’s not a gambler, but now that’s the second uh that’s the second gambling metaphor. We’ve been through the roulette table, we’ve been to the poker table, I don’t know, maybe you’ll be upped the stakes, will go to baccarat, We’ll see, we’ll see where we

[00:46:33.27] spk_2:
go. Something tells me you’d be pretty dangerous in Vegas. tony may be dangerous

[00:47:08.38] spk_1:
to myself, Dangerous to my future and my retirement. Yeah, that that’s the danger. The house, the house has nothing to worry about. Yeah, that’s another one that’s individual. Um Mhm. Mhm. Eat last, eat last and get dirty. And this is a little controversial. This is talking about thinking differently. Uh This is not a not a mainstream uh Strategy Law Law number 19, but let’s talk about it, Eat last and get dirty.

[00:50:19.26] spk_2:
Yeah, something I do in the book is kind of chunk up each of these laws into sort of themed groups. And this one is in the laws of leadership. And it was I benefited although I didn’t appreciate it at the time. I benefitted while at West Point um being the recipient of an unending parade of speakers that would come before us. Uh It was Robinson Auditorium and we would go down as a class or as a whole school, only 4000 cadets in the whole of West Point. Um and we would gather in these auditoriums and once or twice a week, incredible leadership speakers from around the world would come and share their wisdom and a commonality that we’d find over and over again is this leadership attributes of selflessness of being the last to eat the last to leave the last to benefit when your soldiers. Uh in the context of West Point training, they come first soldiers first leaders last. And that finds a way of seeping into your soul after enough of those talks. Uh, and you get out and in the two combat tours, I was in Iraq. Uh that was something that you know, that I took to every unit that I lead is this idea that you know, they eat first, they get to use the phone first to call home, they get to use the computer first to send the email. And this leadership attribute is something that really endears those who serve alongside you. Uh they really come to to follow you into anything if they know that that’s the leadership um approach that you take. So in the nonprofit world, what what does that look like? Uh it really looks like, you know, being the leader who puts staff volunteers board the mission first. And it’s radical to see when you see it. It’s incredibly rare, as you say. Um, in the book, I think I used the example of from one of my favorite books by Stephen Press field of King Leonidas in Gates of Fire. Uh if if I could only recommend one leadership book and I give away cases of the thing. Um it’s it’s this book, Gates of Fire and there’s a critical moment when everyone is squabbling around what to do about this wall, there’s a debate where do we put it? How high do we make it? What materials do we use? And the old king just begins to pick up one block at a time and set it on top of the other and everyone looks on and says what what what is he doing? Well, he’s just beginning to to build the wall. He doesn’t say a word. He just leads by example and starts to do it and suddenly everyone had a shame says what what are we waiting for? Let’s go. And everyone starts to build it alongside him and there he is. Even to the end, long after others have have tired out. He’s still they’re still building. So that that to me is the image of leadership that I try to carry with me. Don’t I wouldn’t say I’m always successful but that’s the ideal.

[00:51:14.86] spk_1:
You do say people will follow a strong and sacrificial figure who leads by example will find a point on it. Um but then you know it goes far. You know, you talk about work martyrdom and that’s why I said this one is certainly I think is is controversial, controversial polemic. Um you martyrdom. Mm hmm. Not not taking vacation. You know you you open that law. I think with a description of what most people would say is someone overcommitted. Uh maybe even obsequious to their to their supervisor. Uh show it feels they have to be the first one in the office and the last one every day etcetera and then you you you encapsulated as as work martyrdom. But then you you praise that.

[00:53:43.85] spk_2:
Yeah, so this is hopefully where I don’t lose, lose you and certainly not our listeners. Absolute. Yeah, no, this is one of the more controversial parts of 40 laws. Um I’ve noticed a trend recently uh just in uh as you know, a lot of the well intentioned writings and books around mental health in the workplace um have tried, you know, for for a long, long time to get people to recognize that, you know, it’s necessary to be a whole person and a lot of that is is very useful and well meaning. But as in all things I believe the pendulum can swing too far in one or the other direction. And it’s my humble opinion that the pendulum may have swung a little bit too far in the direction of uh trying to build a padded room around the workplace of there is a little bit of a manby pamby uh vibe to a lot of what’s coming out these days when it comes to work is don’t don’t work too too hard now and you need to make sure that you have the proper balance in place. And you know, again, all well intentioned, but what it’s done is is ignore the story after story that I put in the book. Every chapter begins with a key leader, the real story of a nonprofit leader who um if they had taken that advice would not have achieved near what they did in their lives, uh with the impact that they did, um to include some of the foremost figures like dr martin Luther King, Jr who was flying around all over the place during the height of his ministry to achieve what he did. Uh did he back off? Did he take it easy? Did he embrace a work life balance? Um I would say maybe not according to, you know what we’re hearing from a lot of folks these days. So work martyrdom is the term that I give to, you know, the the extreme pendulum swing that says, you know, don’t don’t don’t work too hard, take it easy. Well, I would say that in order to achieve the, the impact on the world that many of these non profit missions would hope to achieve. Yeah, it’s gonna take, it’s gonna take a radical level of work ethic in order to achieve that. A work ethic that would look crazy uh, to maybe some of the folks who are writing these books. So again, I hope I didn’t lose you or too many folks with with that little screen, but that’s where I land

[00:55:06.94] spk_1:
invited it. Uh, I well, we’ll leave it there. Let let folks decide what what what what what the balance is, what’s appropriate. Let’s wrap up with one another one. I’m so such a generous spirit today. I don’t know why it’s uh it’s upsetting me that, uh, not at all, but let’s wrap up with one that you’d like to talk about that we haven’t talked about yet. Um, yeah, you could, you could you pick a law that we, we if if if you need a little guidance, like we didn’t talk about anything related to laws of engagement or laws of operating. Um, we didn’t talk about laws of diversity. And the only reason I left that out intentionally is because I anticipate a lot of conversations coming up Around diversity from the nonprofit technology conference where I’m gonna be interviewing 25 or 30 of their speakers that’s coming up in March. And I know we’re gonna have a lot of guests talking about diversity. So that’s why that’s why I didn’t leave. That’s why I deliberately left out your, You’re four laws on diversity, but you want to please.

[00:56:53.33] spk_2:
Well, there’s, there’s one, there’s one within the laws of diversity that that is not going to touch on the nose to what you’re going to be talking about, you know, in later podcasts and in the conference. So if if I may be so bold that the one that I think is Is a way to end on a high note as well is celebrate. And elevate law 18 celebrate and elevate. And it it’s, uh, it touches on diversity, but it’s, it’s broader than that. Um, you know, we’ve talked about lots of things that, you know, uh, nonprofits can improve on. But I’d like to end on a high note just by saying that your nonprofit, whoever you are, whatever you’re doing, uh there’s things that are happening every single day that are worth celebrating. So I would I would say that, you know, the best gift you can give your non profit is a great board of directors. The next best gift a close second is a culture of celebration within the walls of your nonprofit. There are many things that are happening all the time that are worth celebrating. If your emails are loaded with celebration, if you’re if you catch your staff or volunteers doing things well and make a huge deal of it and are lavish in your praise of them. Uh and celebrating them. If you’re starting out each of your staff meetings with a celebratory moment of something that’s that’s going great in your organization. Um that’s what I would say is if you can give your nonprofit a culture of celebration where you’re constantly catching things going well, giving voice to them, being vocal about them and recognize them recognizing those things in silly, exciting ways. Uh maybe even to the point of literally having a bell in your nonprofit workspace where you’re ringing the bell all day long. Uh that is the kind of nonprofit, I love, I’d love to be involved in, and I’m sure you would as well. So that’s what I would say is is find ways to, to develop a culture of celebration within your nonprofit

[00:57:25.53] spk_1:
Derek Timmerman, D E R I K. Founder of Sparrow Nonprofit solutions. The book is the 40 laws of nonprofit impact. Derek, thank you so much. What a

[00:57:27.15] spk_2:
pleasure. It’s been a pleasure. Thank you tony

[00:58:08.33] spk_1:
next week, influencing young America to act with Derrick Feldmann. You see how the show is planned out to all the, how all the derricks come together. This this does not just happen, this is this is takes production skill. I can’t even begin to explain that the time that goes into uh coordinating the derricks to be together. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Our creative producer is

[00:58:35.13] spk_0:
Claire Meyerhoff shows social media is by Susan Chavez. Marc Silverman is our web guy. And this music is by scott stein, thank you for that. Affirmation scotty be with me next week for nonprofit radio big nonprofit ideas for the The other 95% go out and be great

Nonprofit Radio for January 24, 2022: Tribute To Michael Davidson

Michael Davidson & Brian Saber: Tribute To Michael Davidson

Michael Davidson died last week. The show is a replay of his last guest appearance, from October 18, 2021. Michael was on with his co-author, Brian Saber, and we talked about their book, “Engaged Boards Will Fundraise.”

If you’d like to make a contribution in his memory, Michael has asked that all memorial gifts go to SAJ, his beloved synagogue in NYC.

If you’d like to share your thoughts about Michael, you can email them to tributestomike@briansaber.com. Brian will send them to Michael’s family.

 

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Board relations. Fundraising. Volunteer management. Prospect research. Legal compliance. Accounting. Finance. Investments. Donor relations. Public relations. Marketing. Technology. Social media.

Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.
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[00:02:44.84] spk_0:
Hello and welcome to tony-martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Yeah, this is a tribute show. Michael Davidson died last week. He’ll be remembered as a smart, funny, humble giving gentleman. His decades working with boards and his time as chair of governance matters gave him clarity around building healthy, efficient fundraising nonprofit boards. Michael shared his wisdom so generously including with non profit radio listeners. My tribute to Michael is a replay of his last time as a guest he was on with his co author and colleague brian Saber. If you’d like to make a contribution in his memory, Michael has asked that memorial gifts go to S A. J. His beloved synagogue in new york city. They’re at the S AJ dot org. If you’d like to share your thoughts about Michael, you can email them to tributes to mike at brian saber dot com, brian will send them to Michael’s family From October 18, 2021 here is engaged boards will fundraise. Okay, it’s my pleasure to welcome back Michael Davidson and brian Saber, Michael is a consultant specializing in nonprofit board, development management, support, leadership, transition and executive coaching for nonprofit managers. He has over 30 years experience in nonprofit board and managerial leadership. Michael’s at board coach dot com brian Saber is a co founder of asking matters and one of the field’s preeminent experts on the art and science of asking for charitable gifts face to face. He’s been working with boards for more than 35 years to help unlock their fundraising potential. Brian’s company is at asking matters dot com and he’s at brian Saber together, Michael and bryan co authored the book, engaged boards will fundraise how good governance inspires them. Their book brings both of them and back to nonprofit radio Michael and BRian welcome back to the show. What a

[00:02:48.14] spk_1:
pleasure. Great to be back. Great to be back.

[00:02:50.00] spk_2:
Very happy to be here.

[00:02:51.16] spk_0:
Glad to have you. Yes, congratulations on the book.

[00:02:54.35] spk_1:
Thank you

[00:03:00.04] spk_0:
Michael, Your book title is emphatic, there’s no hedging, no

[00:03:01.25] spk_1:
qualifications. How can

[00:03:04.52] spk_0:
you be so sure, engaged boards will fundraise?

[00:04:17.44] spk_1:
Well, it’s a, it’s a great, great question, tony and it really is the answer to that is in the title If if you’ve got a board that really does care about what the mission and the vision is of the organization, that’s why they’re there. If they have that personal motivation to be involved in your organization and to care about the impact that you’re having in the, in the world and are engaged in the ownership of that impact in managing it, they care enough to do this. Where are our whole premises? We can teach board members how to fundraise, brian has been doing that forever. Our job is to figure out how do we make board members want to fundraise and making them want to fundraise is engaging them, engaging them with their fellow board members, connecting them with their fellow board members and deeply connecting them with the vision and the passion that brought them to your board in the first place. That’s the simple, really, the simple answer for this. If they’re engaged, they’re gonna want to, they’re gonna want to make this organization happen, which includes raising the money for it.

[00:04:32.74] spk_0:
And much of the book is getting that engagement doing it properly. We go from details like the board meeting, which we’re going to talk about two to broader engagement you want? Yes. In fact, you say fundraising must be fully integrated with the active engagement of the board in its fiduciary and leadership

[00:04:55.14] spk_1:
roles. Ryan

[00:04:55.92] spk_0:
Ryan flush that out for us a little bit, uh, we, you know, we got plenty of time together. We don’t have to, you don’t have to pack it all into one answer, but why are we starting to get into their fiduciary and leadership roles and, and they’re that relationship with fundraising?

[00:05:51.34] spk_2:
Well, let’s look at the budget for example, and often a budget is presented to the board. The staff puts together a budget and if it seems like it adds up, the board approves it often, it’s maybe just slightly incremental from the last one, not a lot of explanation, sometimes a lot of detail without higher level explanation. And so the board is basically just, I hate to say rubber stamping it and that, that’s just, that’s very passive if the board is involved in developing the budget and is really given a sense of what can be accomplished with a larger budget

[00:06:01.54] spk_1:
and gets to choose

[00:07:03.64] spk_2:
and say yes, we’d like to do more. And we understand our role in that, that we can’t just tell the staff to raise more. Here’s where the money comes from. Here is our roll. This is how we develop larger donors. It does take the board unless wear a university with a big major gift staff were it for most organizations, the board is the major gift staff. We get that. We want our organization to do more. We’re going to agree to this budget knowing all of that, then they’re in it together. Everyone around the table is a knowing a willing participant that’s very different and we don’t see a lot of that happening. And yes, it’s hard on, especially smaller organizations to get all of this done, but it’s critical. It’s critical not to shortchange the process. If we short change the process, we can’t expect the board to enthusiastically go out and fundraise.

[00:07:31.24] spk_0:
This reminds me of the old conventional wisdom, you know, ask for if you want money, asked for an opinion your if you want to, if you want an opinion to ask for money, you’re you’re you’re saying you’re getting the board’s opinion, you’re you’re calling an engagement. But it’s it’s it’s bringing in the board’s opinions about what the organization should be doing, what should be paring back where it should be heading, is that is that, is that essentially what you’re doing is getting bored getting bored opinions

[00:09:27.04] spk_1:
and ownership because it’s not just their opinion on the budget. They put their opinion into this budget, they work with staff on developing it, but at the end of the day they raise their hand and they say, I approve this budget with these particular fundraising goals included in it. I agree to this, they make that decision. You know, one of the things that’s interesting in connection with this, this puts a lot more work on staff. They got to spend more time on the budget. And very often staff said, oh my God, leave the board, we’ll do the budget. Don’t bother them. It’s going to take too much time to explain all of this to them. They may disagree with us on our priorities. They may think other things are important. I don’t want to get involved in that. Let’s just give him a budget a quick five minute vote and done, right? So it requires staff executive director to say, you know, if you want a board that’s going to fundraise, you’ve got to spend the time listening to them explaining to them, engaging with them and they may come out somewhat differently than you do, you gotta live with that. You gotta live with that. It’s not your organization, it’s your joint organization. That’s, you know, that’s a lot of work. So, you know what we’re saying may sound simple, you know, as for advice, you get money, but the reality is, there’s a commitment involved, Both on the part of board members and on the part of staff to make this, you know, staff comes to us all the time. But Brian, and I hear this 10 times a day, my board won’t fundraise, oh, well, what are you doing to get them to do that?

[00:09:29.74] spk_2:
Right. Another piece of it, which we’ll get to is having them do the right fundraising. So that’s the other half of the equation, which didn’t cover because it is a double edged sword there. Okay,

[00:10:00.14] spk_0:
Michael, can we at at points then push back when, when it comes time for, for board commitments around fundraising and say, you know, you all agreed to the, to this budget, you took ownership of the budget, You held your hands up and voted well, now it’s time to fund what you all agreed to. Can you, can you sort of give it back to them that

[00:10:11.74] spk_1:
way? Absolute. And it requires one on 1 work with each board member. And for me, that’s the role of the resource development committee. So let’s talk about it. We’ll get to brian’s magic number of floor, you know, what are you going to do? And

[00:10:25.14] spk_0:
uh, yeah, well, before we get to the fundraising part, I wanna, I wanna spend time on the engagement

[00:10:28.84] spk_1:
part. Let’s

[00:10:44.14] spk_0:
not go anarchy economy. I wanna, I wanna, I wanna, I wanna get this, you talk about a, a culture that creates full engagement, uh who, who’s best for, I don’t know who to call on, you know, I’m a Socratic method from law school, I don’t know, but I don’t want to go like ping pong either, brian Michael, brian Michael, that’s that’s too monotonous. So, you know, who’s who’s best for talking about creating this culture of engagement at on

[00:10:59.10] spk_2:
the board. We’ll let Michael

[00:12:51.14] spk_1:
okay for me, you know, this came out of, I did a workshop with a number of consultants on helping them learn how to do what I do, and one of the consultants whose brilliant, actually, we’ve got a quote from her and what Catherine devoid. Catherine said, you know what you’re talking about, Michael is aboard culture and Peter Drucker, the management guru says, you know, culture eats strategy for breakfast. What we want to do when I talk about a culture is a culture, is a team for me aboard, culture is a team, We see ourselves as a team, we understand, we know each other, we’ve spent time with each other and we jointly want to do something, we jointly believe in this in this mission, okay, And we encourage and support one another. So the culture at base has a system where board members know each other and work together on various kinds of things. Then you have the motivation and then board members can encourage and hold one another accountable for what they’re doing. So the culture starts with, making sure that board members know one another personally, personally know who they are, who they are and from that you can begin to build a sense of a team. We’re in this together, we’re not separate. It’s a very, it’s a very different notion of what the board is. You know, you and I tony were lawyers. Right? So we start, okay, this is the fiduciary responsibility. This is the board, this is what they’re supposed to do brian and I are asking the question yes, we know what they’re supposed to do. How do we make them want to do it? And part of it is the mission, but part of it is their sense of responsibility to each other. Think about a sports team, right? What makes a good sports team? Not a collection of stars, right? It’s a collection of individuals who don’t want to let one another down. I want to do my best because I’m with you, we’re doing this together. And if you get the matter,

[00:13:16.84] spk_0:
you used to use the metaphor Michael of the rowing because you’re a rower and you had the coach boat and rowers have to be working in unison,

[00:14:17.94] spk_1:
right? In in unison. And there’s a great quote which I used in the book from the boys in the boat, in which the coach tells this row, right? You know, you’re a good rower. But let me tell you what you need to do to be a great rower to be a great rower. You need to trust every other guy in the boat when you trust everybody else, you will be great. That’s an interesting notion, right? Because I know if I know Tony, I know you’re pulling as hard as you can, I’m gonna pull as hard as I can. If I’m not so sure about you, why do I kill myself? Right? But I know you tony you’re gonna pull with everything you’ve got. And so I’m gonna pull with everything I got. It’s a very simple kind of notion, but to us, it’s very, very important. It’s creating the board as a group, not as a collection of separate individuals as a team and they hold one another accountable and they don’t want to let one another down. It’s the experience we’ve all had.

[00:14:20.94] spk_0:
Right? How do we start building this trust among board members?

[00:16:33.84] spk_2:
Well, first we look at the time we, they spend together and how we’re using it. So I always say to people, it’s amazing the percentage of a board member’s time that is spent in board meetings and the percentage of the board meeting time that is not spent. Well, so if you’re going to have A two hour meeting every other month, Uh that’s 12 hours and and maybe there in the committee meeting once every two months or once every month or something. But almost all the time is spent together in these meetings. And the meetings have so much, uh, um, reporting, There’s so much happening there. That doesn’t have to happen, uh, there. And, and, and so the meetings don’t allow for this team building where the, where the board members are grappling with the big issues and wrestling with the future of the organization, uh, how the organization is presented, where it fits in a big, big, important issues. And they should be wrestling with those because they’re the board and they have the responsibility for moving this organization ahead, keeping it safe, making sure it’s doing the right thing. And uh, so many board meetings have very little discussion of program presentation of program reporting back from board members of what they’ve seen in the program. And lots of board members rarely even see the program in action. So the board meetings are very report central centric, no one wants to give up their their chairman’s report, their executive director’s report, this report, that report. And we try to move people towards these consent agendas where all the reports go out in advance and are simply approved and you have to read them. You have to read them in advance because you can’t just come to the meeting and expect to have a conversation about them even and even the action steps should be discussed.

[00:17:02.64] spk_0:
You even suggest in the book that questions about what’s in the consent agenda have to be submitted in advance of the meeting? You can’t come to the meeting with your questions about the previous, the previous minutes or or everything or the reports that are in the consent agenda, you got to submit your questions in advance. So we know you’ve read them, How many of us have been in board meetings where people, you can see, you see people for the first time, they get there 10 minutes early and they’re pouring over their board notebook and you’re just sure that that’s the first time they cracked it open 10 minutes before the meeting and what’s really they’re wasting their time at that point.

[00:17:47.24] spk_2:
And then you get one or two board members who hijacked the meeting with questions and they shouldn’t be allowed to. No one gets to hijack a meeting. And if you have this, this structure in place which is much more about discussion and moving the organization forward, building the team and such, then there isn’t that time for these small questions. I mean, I I get driven crazy when budgets are presented and someone goes to one small line item and ask the question, it’s it’s it’s it’s so bad in many ways, we’re trying to move people away from that.

[00:19:07.14] spk_1:
But tony there’s another side to this and that’s the role of the executive director in this Because what we’re urging is that there’ll be substantive questions, for example, on such and such a program. What is the impact of that program and how do we measure that impact? Right. That’s an important engaged board discussion. Executive directors many say, wait, wait, wait, wait. I don’t want them getting into program. That’s my job. If they start talking about programs, it means they’re trying to manage how I do my my implementation work. Right? And we say we want we want boards to be faced with the real issues, as we say in the book, the good, the bad and the ugly. Well, executive directors don’t like to do that. They just want to give the board good news, put out their report and go home and hope that they don’t bother them. So this partnership takes too right. You’ve got to have an executive director who is willing to engage with the board in these substantive discussions about the future of the organization, about the problems that the organization is having about its challenges, not just the good news. So it takes, it’s two sided. You can’t do

[00:19:08.11] spk_0:
this. What is the appropriate role for a board member, board members around program, Michael,

[00:21:23.84] spk_1:
for me, it’s about impact. It’s not about how you do your program, it’s about what your program is designed to accomplish. And how do you measure? What’s the vision? What are you trying to do? How do you measure that impact? I’ve got, you know, I’m on the selection committee for the Awards of Excellence and nonprofit management. And one of the things that we look at is program impact. So let me give you one of my favorite examples. And this is the board involved, an impact, Right? Um you know, I’m a roller. So this is, it’s a rolling story. Okay, So wonderful organization in new york city called Rome new york. No new york works with local high school kids, makes them into competitive rowers, which is really good for their college applications. Works with them on college prep stuff and stuff. They were off the wall about the results of their program, 98% of their kids were getting into college. Fantastic. Right. Fantastic. Well, but they had also been collecting data on their kids. And one of the things that they saw in their data is that their kids were not doing so great in college. And so the executive director and the board started to look at this data and said, you know, we’re we’re focusing on the wrong input. Our endpoint should not be college acceptance. Our endpoint. Our impact point should be college graduation. So now what do we have to do programmatically to reach that. And we have to put resources into different kinds of programs that the programs to keep track of the kids once they’re in school, bring them back. So and it’s over. But it was the board and the executive director looking at the data and looking at the question, what is our goal, what is the impact we’re trying to make? And by doing that, they jointly changed where they were directing resources, some of the staff that they were doing and stuff like that. So that’s an example for me of the board being involved in programs, but at the right level at the level of impact and the level of data, not how do you teach? And that’s what executive directors tend to be afraid of. Once you start talking about program, then they’re gonna start talking about how do I teach and how do I run my classroom and so on and so forth. And that’s the board job

[00:22:06.14] spk_0:
brian, let’s talk a little more about nuts and bolts of meetings. If the, if this is the primary time that the board is spending together, whether it’s committee meetings or bored or full board meetings. Um, in fact I’m imagining you two would advocate for social time for the board as well. But so we can, you know, we’ll get to the social part. Let’s let’s talk more about some nuts and bolts meetings. Were trying to build a team, we’re trying to build trust. We want to focus on the right things. What, what more advice you have around meeting structure.

[00:24:04.24] spk_2:
Well, first of all, the agenda needs to be developed jointly by the executive director and board leadership. Sometimes that’s just the chair, sometimes that’s the entire executive committee and it needs to be developed in advance and everyone needs to know their role and be prepared, not just wing it. Uh so that’s that’s the first piece. I often hear boards talking about one hour meetings. Now. This idea of making meetings very efficient and it reminds me of this issue with government and people want small government, it’s really better government that you want, right? You don’t want to waste the time. It’s not that you’ve got to make it smaller, but it needs to work, right? And I think an hour is not enough time. I think an hour and a half to two hours gives you uh, the flexibility to dig into a topic. Uh you have to have some sort of program presentation every time. There’s there’s no substitute for that. The more we connect board members program and give them an opportunity to ask questions about it to learn about it, the stronger their connection will be. So there needs to be programmed presentation, Michael and I prefer that board members are out there, uh seeing program and are bringing back their own recollections and sharing those with the board. Um, so those those are important. Uh the, you know, we should not have a long Executive Director’s report. We should be asking the executive director just as we ask all the committee chairs to submit their reports in advance. Uh the the chair’s report should be very short at the very beginning, very high level Michael, Would you add to that?

[00:24:06.32] spk_1:
Yes, I didn’t do that. Exactly one is I love to time my agenda’s

[00:24:13.14] spk_0:
Yeah,

[00:24:35.44] spk_1:
I lay out, you know, we we lay out what’s gonna be and then I put this is gonna be five minutes, 15 minutes, whatever it is and that does a couple of things. No one, it focuses the board, it makes us think about where we want big discussion and where we don’t want big discussion and it also gives the chair of the power to cut things off. So if someone’s going off on a on a rabbit or you know, at the meeting, no, no, no, no. We’ve only got five minutes for this. We have to end discussion now because otherwise we’re not going to get to the other. So timing the agenda is a big deal. You know, Michael, I’ve

[00:24:58.64] spk_0:
even seen where uh aboard and I’ve seen this in other meetings as well outside the board setting, where there’s a timekeeper appointed. So so the chair can keep the conversation flowing and relevant. And the timekeeper is the one who says, we only have three minutes left for this topic. You know, like mr mr and mrs board chair, there are only three minutes left on this topic. You know, it’s up to you to decide what you want to do, but I’m the timekeeper and I’m letting you know there’s only three minutes left. But just another,

[00:26:41.64] spk_1:
it’s an interesting notion I actually kinda like it goes back to as you know, I spent a good part of my legal career as a prosecutor and you know, and the notion of good cop, bad cop, right? So so the board chair is a good cop. No, no, I’m not controlling this, right? Someone else is telling us we have to stop, but I’d love to let you talk forever. Right? Yeah, good. You know, so it’s a good thing. The other thing too is there’s a framework for board discussions which rob Acton is used in in in his in his writings and he’s, you know, and he says there are three kinds of questions that boards need to be looking at generative strategic and fiduciary, okay, generative is where are we going, why are we doing this? What’s our purpose? Right? Strategic is how do we do it? And fiduciary other details and you know, and part of what happens is so much of board meetings tend to be taken up with fiduciary matters and not enough time on generative and strategic matters. So again, as the, as the leadership team is thinking about the agenda, they should be asking, you know, are there questions of that nature, generative and strategic that we need to be thinking about, you know, so it’s good paradigm.

[00:26:43.44] spk_0:
Yeah, brian’s got his hand

[00:27:34.14] spk_2:
out and I want to add to that, that when we talk about developing these board meetings, a lot of boards meet if not every month every other month and I’ve always felt the more often you meet and it’s not something we talked talked about in the book, but it’s something I Michael and I have talked about, the more often you meet, the, the more likely it is you’re going to get into more details because less has happened in the two months you get out of the meeting. Everyone has one committee meeting perhaps than your back. And, and I don’t think boards have to meet as a board every two months. I think if they meet quarterly as a board, there’s, it’s easier to see the big picture. It gives more time for committee work in between and and that alone could help lessen the focus on minutia.

[00:27:43.54] spk_1:
It’s an interesting question. Um, I, I go both ways depending upon the organization and, and the size of the board. But one of the things that’s interesting about another question about board meetings is how do we use board meetings to connect board members with one another?

[00:27:58.64] spk_0:
I was gonna get to this. I wanted to get to the social side of this too.

[00:28:01.73] spk_1:
Great. Okay. Okay.

[00:28:03.09] spk_0:
Yeah. So how do we,

[00:29:40.14] spk_1:
Well, it’s very, it’s really interesting because I think, and I’ve been thinking about this a lot as we emerge from Covid, hopefully emerge from Covid. Right? And, you know, very often would say, okay, you know, what we’ll do is we’ll have a cocktail party before the board meeting, have some wine and cheese, maybe after the board meeting. It’s interesting, but it’s a pretty it’s problematic because what’s likely to happen, what’s likely to happen is that board members will talk to people that they know the people that they usually talk to, right? And they’re going to talk with them about the things that they usually talk about, right? Your your your golf game, your your your your your other involvements, whatever things that they have in common, they talk about. And what I’ve been trying to think about it, we mentioned in the book is how do we create a how do we structure the interpersonal connection so that it’s deeper. Um I just did this yesterday. So whatever the most recent thing in my mind always helps, right? So I retreated. I facilitated a board retreat yesterday, which actually was in person. Um and but what we did was before the, before the meeting, and this can be done. We assigned pairs of board members. Everybody was in a pair of two and they had an assignment. What they had to do was to interview the other person, find out about them, what they like, what they do, what their passions are, what they care about, what they read, what kind of music they’re kids, they’re this, they’re not find out about who they are as a person, and then each one had to then introduce the other at the board meeting. Okay, so this is something that takes some time and you can’t do it all the time, but it’s a very interesting way. And I asked him, I said, what was this like? You said, this was great. These are really interesting people. I want to work with these people

[00:29:58.64] spk_0:
going back to your team, Team building.

[00:30:12.14] spk_1:
Team, go back, yep. So if, if we’re, if we’re going to try to create opportunity, social opportunities, we need to think about what’s the best way to do that to achieve our goals.

[00:30:14.44] spk_0:
I’m skeptical. I’m a little concerned about wine. Before the

[00:30:18.04] spk_2:
meeting, you were getting a little too uh,

[00:30:21.86] spk_0:
a little too loose lipped maybe. But but but I love the idea of the introducing, introducing someone you don’t know, you get to talk to somebody that’s outside your comfort zone, but ought not be because their fellow board member. Right. Right. Right.

[00:31:13.94] spk_2:
Yeah. I had a program at one organization where I was where we, we had board members go out after the meeting together and we assigned the groups so that we had a good mix and people would, would meet each other and and they were, the goal was for them to do that twice a year. It’s all about time. Right? But we thought that was important time to spend so that they’d at least go out to dinner with half the board and some of it depends on the size of your board, what you can accomplish, Right? But we didn’t want groups of more than six because we wanted people to be able to talk with each other. So, but we might send two groups of six out in different directions.

[00:32:13.34] spk_1:
Yeah. You know, and it’s interesting, I’ve seen people do very simple things at the beginning of a board meeting, a consultant I’ve worked with, she always starts out every board meeting with a question. So, tell me about the kind of music you like. Alright, two seconds. Tell me about the most interesting book you’ve read recently and why? It was interesting to you. Right? I mean, two seconds we can do that at a board meeting. It loosens everybody up. It enables people who are introverts to have to say something to get out there and talk. It puts a limit for the extroverts on how much they can talk. Right. But it’s a, you know, so you can do devices like this recognizing because it’s important, it’s important to recognize the importance of the board culture that unless we have that sense of connection between people, none of this stuff is gonna work.

[00:32:19.84] spk_2:
Okay. And now let’s bring it

[00:32:21.11] spk_0:
to the to the book title.

[00:32:22.62] spk_1:
Okay. Will

[00:32:24.45] spk_0:
will fundraise Shall shall engage board shall fundraise.

[00:32:28.32] spk_1:
How is No, no, no, no, no. We didn’t use the word shall. Now I I added shall because that’s pretty that’s pretty perspective prescriptive, prescriptive. I

[00:32:58.54] spk_0:
know, yes, contract, contract, your shall versus will um no. The book title is engaged. Boards will fundraise. So how does having better board meetings and board members knowing each other better through these simple social devices? Social methods improve our fundraising

[00:35:18.54] spk_2:
Right. Well, as Michael has talked about a fair amount, it creates a team and a sense of joint responsibility. You’d think that it exists just because they have all joined this same organization. But you can’t just accept that as fact, you have to work on it. So by building this team, this camaraderie by, by helping people understand each other. Uh, there is a shared sense of, of, of responsibility. Second, by really engaging the board in these discussions and having the board understand the organization at a more nuanced and important level. It is easier for them to talk about the organization to feel comfortable doing it to represent it properly and to do it passionately, which is key to fundraising right? Being an ambassador for the organization. So many board members uh, say I, I don’t know enough about the organization to go out and talk about it. I’m afraid I’m gonna say the wrong thing. I don’t know the organization like the executive director does. And one of the steps here is to get board members more comfortable as ambassadors talking about it. Uh, and it’s funny because I always say to board members, you don’t need to know all the details. You don’t have to know every little thing and all the numbers and such. You just have to be passionate and authentic to tell a good story and get people excited about the organization and its incense goes hand in hand with the board meetings. Right? And if we’re concentrating on Mnuchin the board meetings, then the board members think they need to know the minutia. If we stay out of the minutia in the board meetings, then the board members can feel okay, this bigger picture is what’s important. So, so we build a sense of responsibility and we build, uh, more of a comfort in talking about the organization. We also build an understanding of why the funds are needed and what they will do, right? It’s not just we need money. Uh, will you give me money? I love this charity, but this is the impact we’re going to, how they can talk about that. So, okay, so that gives them a basis for going on fundraising.

[00:36:05.03] spk_0:
And that’s sort of a perfect transition to getting now to the discussion of engaging the board in the right kind of funding in fundraising. So, you know, listeners, you just get, you gotta get the book to, to learn more about how to engage your board. Um, they talk about the different duties of care and loyalty and obedience that board members have than governance. There’s, there’s good talk about governance, uh, that, you know, belonging in in one place and management, belonging by the other managements, by staff, governance, by the board. You gotta, you know, you got to read the book to get more of that detail about engaging. So now let’s talk about engaging the boards, you know, specifically in fundraising. You to have, Well, I think six different six things, you know, like make the case identify the resistance. Is that the best way to talk through the engaging the boarding fundraising? Or is there a better

[00:39:01.82] spk_1:
way for me? There’s, there’s another way to start it. And that is what brian has been talking about right now is giving the board members the basic tools, right? Thank you. They know how to tell a story, but they’ve got a story to tell. But one of the things that we look at is the fact that there is discomfort, resistance about fundraising. It is not something we do in our normal lives, right? We we do our jobs, we’re professionals, we don’t go out trying to engage other people in the things that we’re engaged in, Right? So they need help doing that as part of the team. Thing is they want to feel I want them to feel responsible to one another. But in addition, there has to be some guidance from, even from fellow board members or from staff into how to do this. So board member says, okay, I, I know I know these, I know these people, I, you know, I’m comfortable with them, I’m willing to talk about it. I’m a little, I’m uncomfortable asking them for something. They were gonna tell me, no, it’s going to harm the relationship and stuff like that. So time needs to be spent. Either one on one with board members and within a member of the Resource Development Committee or as they remember to go through, Okay, let’s figure out how you do this one with respect to the resistance that you have about it. How do you overcome that resistance? You know, what do you do? So for example, one of the techniques I told board members is you never want the first conversation you have with somebody about your organization to be a conversation. We’re asking for money. That’s the kiss of death. So what you’ve got to get to do is, okay, here’s what you gotta do over the next two weeks. You’re gonna are you gonna talk to any friends? Yes, I’m gonna talk to some friends. Okay. Here’s what I want you to do in those conversations. Find something that they’re interested in that allows you to bring up your experience with this organization. You’re not asking for money. You’re not asking to do anything. You’re just bringing this organization into the conversation. That’s your job. Alright, okay. Now, after you do this, let’s come back and talk about it and tell us what your experience is. Now you can do this with the entire board, right? We’re at a board meeting. Okay, everybody next week or between now and the next board meeting has to have one of these conversations with a friend come back and report at the next board meeting. Let’s see what we learned? What was difficult? What worked did they ask you questions? What would be the next steps? So they’ve got to birth, feel responsible for one another. But it also at the same time gets support from one another for doing this incrementally, because this is new to all of us. It’s new to us. You

[00:39:17.32] spk_0:
have an exercise in the book. Seems ideal for a board meeting where you you asked for board members to list their objections to fundraising and then list their personal experience of either having asked or being asked in the past. And the two don’t do don’t align like, the reality canceled out the objections. Like, whose idea is that, is that yours, Michael,

[00:40:53.31] spk_1:
or that’s that’s me. Yeah, Okay. It’s a very simple exercise. You know, I I like to draw upon personal personal experience. I believe that board members got the answers to all these things I’m concerned about. They just haven’t talked about it. My job is to get him to talk about it. So yeah, they’re gonna tell me about I don’t want to fundraise, that’s going to be this is gonna be that they’re gonna hate me, blah, blah, blah, blah, blah. Fine. Okay, now, let’s talk about what actually happened in your life? Have you ever given money? Did anybody why? What was there about that circumstance that made you comfortable and want to do that? So we take their experience and bring it back. I just, I’m gonna intercept here and you can cut this out if you want. One of my later readings is I’ve gone back to the Socratic dialogues, Plato’s writings about Socrates because what Socrates believed was that everybody had the answers to all these important questions in their head and his job was just a problem and ask the questions to get it out. And I believe, I believe this about boards, our job is to use their experience, not tell them what they’re doing wrong, take what they’ve done and learn from it and help them learn from it.

[00:40:59.51] spk_0:
You’re right. That that’s worthless. I’m gonna cut that

[00:41:01.53] spk_1:
out.

[00:41:04.13] spk_0:
Um, yeah, brian,

[00:42:07.90] spk_2:
but yeah, so you know, adding to what Michael said, one of the, one of the kickers here is board members having to ask all their friends only to be asked to give gifts in return to the other organizations that you know, with pro quo. And I’ve been talking about this for a decade at nauseam because it is horrible short term, a transactional fundraising. And it’s gotten really bad in our field to our detriment. And everyone gets sort of, uh, the organizations get stuck on this. It’s like a Like cocaine, right? And, and, and, and can’t move away from it. Well, we need the $50,000. The board raises and it’s like, Okay, well your board is going to hate doing this type of fundraising. They’re not going to be inspired when they leave, all those gifts are going to leave with them and so forth. So you’ve got a short term gain, you’re getting some money in the door. But everything else is wrong. We don’t, I always have people

[00:42:10.40] spk_0:
good point about just the last one you said, I want to just amplify when the board members leave. Those gifts are going with that. When I just, I just wanted to amplify that.

[00:43:21.30] spk_2:
When I say that to board, the lightbulb goes off, I say who I’m not? If I’m on the board and I leave the board, I’m not going to keep asking just if I could give gifts to all my friends and what what happens when you have me as a board member, uh, do this is I end up giving money away two organizations I don’t care about just to be nice. And whereas it would be better if I gave all that money into my organization that I love and tell people you give it where you love where, where you where you’re excited because then I’ve made a bigger investment in my own organization, have a bigger stake. I’m more of an investor. And if if I think I first wrote about this 10 years ago that if I had one wish in the nonprofit world, it would be to stop the quid pro quo fundraising today because it’s a sisyphean task. It’s just not getting anyone anywhere. It’s keeping them from anything strategic and it and it is burning out the board members. And when board members come to the board, often they’re on their first board. They assume that this is the type of fundraising we’re going to ask them to do, which is why they have such resistance.

[00:43:32.80] spk_0:
What do you want to see in in its place?

[00:44:19.29] spk_2:
What I want to see is the board members to serve as ambassadors and what I call many major gift officers. So let’s look, people look at the big shots, they look at the hospitals and the universities and these massive organizations because they raise so much money and they’re very visible and they all have what we call major gift staffs. They have, Uh, staff whose sole responsibility is to take 150 200 prospects donors and cultivate and solicit them and steward them along. Right. And, and those staff for year after year have these people have this portfolio if we want to call it that. Yeah. And that’s great. But most organizations have a budget under $1 million. Most organizations are lucky if they have one development officer who’s doing everything. Special events, direct mail, grant writing,

[00:44:34.29] spk_1:
crowdfunding

[00:46:35.38] spk_2:
You name it and maybe has 5% of their time to actually go out and talk to significant individual donors. So what I want rather than this transactional fundraising is for every board member To be a mini major gift officer with four prospects slash donors on their radar screen, who they stick with And those may or may not be their own contacts. Many organizations have people who need more attention than they’re getting and they don’t get it because the executive director and our director of development don’t have the time. I’d sooner see the board members taking donors out to coffee, calling them and thanking them for gifts, attending cultivation events with them and asking them what they think than being worried about soliciting the gift. I’m much less concerned about board members asking for a gift. They don’t have to ask for a gift as a matter of fact, and I only was thinking of this this past week. Major gift officers don’t always ask for the gift. So I was a major gift officer from my alma mater. I was in charge of solicitations in the midwest big gifts. And you know, there were times I asked many and there were times when someone else asked the president, the senior vice president, um, volunteer this idea that just because you’re cultivating and stewarding someone means you’re the Askar. It actually doesn’t even add up with professionals. So I want the board concentrated on this other work, which most of them are willing to do. Oh, I’ll happily call for people and thank them for their gifts. So I’d be happy to take people out and thank them and get to know them better. Ask them if they’ll come with me or or send them a personalized update. And this is incredibly important work. If we’re going to build relationships. And the other point I put out the three of us know the numbers that most, Most of the money, most of the charitable gifts come from individuals, 85, everything you had

[00:46:42.59] spk_0:
When you had requests. It’s like 88 or so. But yesterday that request is 77 or something like

[00:48:00.07] spk_2:
that. The largest gifts come from people. We know if you look at your own giving right and where the and individuals are really loyal. I ask people all the time on boards. This is part of breaking down that resistance. What’s the longest number of consecutive years you’ve contributed to an organization Now for many, it’s our alma mater, right? So I graduated in 84. I’ve been giving to them for 37 years and I’ll give them till I die. And many people do. That could be your church there. We give for decades. So we don’t, it’s not about the short term win. It’s about what I call an annuity of gifts over what could be decades. If you bring someone in and they get excited most of our organizations or institutions that are going going to be doing our work forever. Some are meant to put themselves out of business and result some problems. But most nonprofits will be here for 100 200 years assuming the planet is and you know helping people with medical needs, helping seniors, helping kids get educated, whatever it is, building community. And we want people to have a state for a long time. So let’s have board members help build that state with these individuals

[00:48:24.87] spk_0:
and that that also relieves board members of the, the fear and anxiety of having to be the solicitor. You know, some board members will step up to that, some will with training, but it’s not necessary. You’re saying board members can be building the relationships in all these different ways. Maybe hosting something in your home with four or six couples or something, all these different ways. You know that you mentioned the thank you, notes the acting as the ambassador all these ways and then maybe you’re you’re cultivating them for someone else to do the solicitation, maybe maybe the board member is involved in it or maybe not, you know, it doesn’t have to be

[00:49:04.17] spk_2:
right. It goes back to the good cop bad cop, you know, the board members, the good cop and then brings the Executive Director and Director of Development and to ask for the gift that’s perfectly legit perfectly legitimate. I played that role many times as an Executive Director Director of Development where I asked um, yeah, where the board member cued it up right

[00:49:27.37] spk_0:
and you’re collaborating in the relationship, the board members reporting back, letting the ceo no. You know, this is this is how it went with her. But you know, the ceo is asking, you know, do you feel like it’s maybe it’s the right time for me to ask or for us to ask or is it still too early? Or look, she expressed interest in this particular program. And you know, the board was just talking about expanding that, putting putting more resources to that. This could be a very timely topic for me to bring up at a, at a meeting with her or the or the three of us. You know, you’re you’re you’re collaborating around the relationship, you’re strategizing about when the best time is to actually do the

[00:50:19.96] spk_1:
solicitation, right? And going back to board meetings for a second. One of the things you want to do with the board meeting is acknowledge the people that have done this. You know, wow, let me, let me tell you, the executive director said, let me tell you that. You know brian and I brian introduced me to so and so and we had a meeting and you know, we walked away with a check for $5000. Thank you brian. That’s what you gotta do, right, celebrate. It builds it celebrate the winds and it builds it into the culture. You don’t want to be the only one who never gets it. Thank you. Right? Let’s

[00:50:30.36] spk_0:
talk about the expectations, establishing expectations around giving and fundraising for

[00:50:32.75] spk_2:
board members. Yes.

[00:50:34.60] spk_0:
Who wants to kick that off? Let’s spend a little time with that. Yeah, brian,

[00:53:22.35] spk_2:
can I? Because I’m, I have, I’m rabbit about this one actually to, um, I cannot stand minimums and given gaps, give or gets excuse me. I believe that everyone should do their best on both. Besides everyone should give a personally significant gift as an investor in this organization and do their best at fundraising. And, uh, without going into great detail. What I see time and again as a minimum gift ends up being a ceiling, not the floor. You think everyone’s gonna, okay, everyone’s gonna give at least this. But most people then give that, it feels like do is you set the, the amount low so that most people can reach it. You still have some who can’t. And, and it’s been proven again and again, that that minimum gifts do not generate the largest gifts, minimum gift requirements don’t help. And people say, well, how do board members know what to do? And I said, well from the very beginning, and we talk about a job prospectus in the job description, You tell prospective board members, here’s the range of gifts we have. Board members giving anywhere from $500 to $5000 depending on their capacity. We ask people to do something very significant, given the who they are and what they can do generally, right, we want everyone to feel that they’ve made a gift. They thought about that’s important to them. Some people said ask for that. One of the top three gifts you give anywhere, which is a very concrete way to put it and, and, and works. So on the gift front, you give people guidelines. And here’s, here’s an interesting thing. You actually asked board members for a gift. I’m amazed. We’ve never in good best fundraising or best practice fundraising. We ask our major gift donors for an exact amount, you know, Tony. Would you consider a gift of $10,000 etcetera? And yet we let our board members just give whatever they want to give. Why would we do that? I really push asking every board member for a specific amount that, that, that is personally significant to them, makes them think about what’s significant And on the get side, I really believe it should be the best of your ability because if we say you’ve got to give or get 5000, a board member with a lot of capacity can just give the whole thing and not do any work or swap gifts with friends. And, and yet, and the board member with less capacity is left, um, doing the hard work and that doesn’t make for a team. Everyone needs to do the hard work together.

[00:54:44.54] spk_1:
There’s a couple of, I mean, I, I’ve learned this from brian and that’s my become my mantra with working with, working with boards about personally significant gifts. And there’s a couple of there’s another consideration now, especially with with our desire to diversify our boards, don’t, we may be reaching into populations that don’t have access to resource, but they’re important in terms of perspectives that they bring to our deliberations. And so having this as the standard personally significant gift for everybody. It’s equal, we’re all equal. We’re all giving the best we can. Another part of that. And I really like what brian says about, you know, asking our board members, it’s a negotiation, Right? It’s not a no, I need $1,000 from you and that’s what you gotta do because you’re a board member. It’s what I, you know, let let me let me tell you what I give. Okay. And now here’s what I think might be reasonable for you. Let’s talk about it. Okay. Is it really is is that a reasonable gift for you? It’s not demanding its opening a conversation as as the possibilities. So, you know, I mean, I’ve done some capital fundraising and very often we ended up in a negotiation. You know, I asked, I went in asking for a certain amount which I thought that person could give or we thought that that person could give when I put that number on the table and kept my mouth shut for a few minutes, you know, so they came back and they said, well, you know, that’s a little okay, let’s talk about it then,

[00:55:06.14] spk_0:
Support support training? It could be training, could be staff, support for the, for the, the board that the, that the, the, the employees, the staff are, are obligated to give either their own or through a consultant. What kind of, what kind of board, what kind of support do we need to give? Our board members around fundraising?

[00:58:29.12] spk_2:
There are 22 pieces here. The first gets back to something, Michael said a long time ago about staff and the need for staff support in terms of the board meetings and the board members being involved, board members will only help with the fundraising to the extent they have staff support. They’re always gonna need staff guidance materials, someone to bounce ideas off of and and such staff need to be managing this, reminding board members of their next action step with a certain donor, um, providing materials and so forth. So staff have to keep the tracker, as I call it this, even if it’s an Excel spreadsheet with a list of everyone and who does what and, and, and, and constantly move the process forward. But probably the most important thing is training because, as Michael noted, board members come with very little experience and a lot of trepidation and the more training they can get, the more comfortable, they will be the more comfortable and effective. I always ask when I do a training, how many of you have ever been asked for a gift the way we’re talking about it. How many times has someone said, Michael, would you consider sitting down with me so I can ask you for a special gift to our organization. The truth of the matter is with all the asking out there with all the fundraising in every form. Very few people end up in these conversations. It’s the big, big, big, big donors, Right? And, and so many board members have never been on the other side of the equation and really have no idea what one of these meetings about. They assume you just go in and you ask for money, you just say, you know, will you give this? They don’t, there’s no way for them to know because they haven’t experienced it themselves. So we need to teach them what it is. Uh, and, and that it’s all about the relationship, which definitely takes some of the pressure off. It’s always about the relationship and it is never about the gift to me. That is the number one rule in fundraising. And I will leave money on the table time and again, I just, I just coach someone an hour before this conversation who’s the head fundraiser for a program within the school because a donor um, offered up an amount before being asked for an amount and it’s a significant amount and a big step forward. And the question becomes, do I go back, do I negotiate? And some of this is happening by email and I said in knowing the stoner, I said, you take the win. It’s about the relationship, This is much, this is big for you. There’s always next year, the year after and so forth. So teaching board members, it’s about the relationship, not the gift, whatever happens this year, that’s okay. We’re building the relationship helps them feel more comfortable because they think they’ve got to go in and come out with whatever you all were hoping for. You know, it’s a, it’s a it’s um, and we’re guilty of building this mindset. We as a culture.

[01:00:50.81] spk_1:
The other side of it is that there are some very for me very simple things that boards can learn how to do to build a relationship. For example, one of one of the things I very often do with a board retreat, simple exercise or on fundraising. I tell people, look, you’re now going to somebody, you’re sitting in somebody else’s fundraising dinner and there’s somebody sitting next to you. Okay, So you want to have a conversation with the person sitting next to you, get to know them. So here’s your job. You’ve got to ask that person questions about what they’re interested in their lives and zones of fourth and you’re looking for someplace in them that connects with your organization. Then when you find that place, then you can introduce your organization, but that’s your job and we, you know, we pair up and people around, you know, around the room, sit down and try to have these conversations and realize that they can because these the way in which we want to build relationships is a technique and it’s something we need to practice and become comfortable with. You know, people are not used to really interestingly asking questions. We all tell people things about ourselves, but we don’t ask them questions about themselves. So, I mean that’s one of the pieces of support, right? Doing those kinds of things, telling stories quick. You all went to visit the program, tell me something that happened in that program that you saw that really was important to you. That inspired you. That made you think about the value of this organization. Tell me the story. Well, people don’t know how to tell stories. They have to learn how to tell stories. It’s it’s but it’s a very simple, you know, these are not complicated techniques, but it’s all part of becoming comfortable in what brian is talking about in this ambassador role relationship relationship relationship.

[01:01:14.41] spk_0:
I love the relationship, not the gift like that brian. All right, we’re gonna leave it. We’re gonna leave it there with the with the support idea. You gotta support your board members, Michael Davidson, consultant and coach. He’s at board coach dot com. Ryan Saber asking matters, asking matters dot com and he’s at brian Saber, Michael brian thanks very much. Terrific.

[01:01:18.66] spk_1:
Thank you. It was a pleasure tony great questions. Thank you. My pleasure.

[01:01:31.31] spk_0:
I’m just, I’m just trying to keep things going. Look book and the book the book, it’s Michael and bryan, who cares about Michael and bryan is the book you want? The book is, the

[01:01:33.13] spk_1:
book is

[01:01:35.71] spk_0:
the book is engaged, boards will fundraise how good governance inspires them. It comes out this week, this week of october

[01:01:44.63] spk_1:
18th yes,

[01:02:17.91] spk_0:
it’s not a long book, but it is long on value as you can tell from this outstanding conversation, lots of value in the book. Our creative producer is Claire Meyerhoff. The shows, social media is by Susan Chavez. Marc Silverman is our web guy and this music is by Scott Stein, thank you for that. Affirmation scotty Be with me next week for nonprofit radio big nonprofit ideas for the other 95%. Go out and be great

Nonprofit Radio for January 17, 2022: Legal Outlook For 2022

Gene Takagi: Legal Outlook For 2022

Gene Takagi

Gene Takagi returns for a mix of checklist items and emerging trends. It’s a good time to look big picture at your HR investments, corporate docs and financials. Also, what to look out for in crowdfunding, donor disclosure, data protection, and more. Gene is principal of the Nonprofit & Exempt Organizations Law Group (NEO) and our legal contributor.

 

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[00:02:10.34] spk_0:
Hello and welcome to Tony-Martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d bear the pain of proto psychosis if you infected me with the idea that you missed this week’s show Legal Outlook for 2022, Gene Takagi returns for a mix of checklist items and emerging trends. It’s a good time to look at big picture items like your HR investments, corporate docs and financials also though what to look out for in crowdfunding donor disclosure, data protection and more, jean is principal of the nonprofit and exempt organizations law group Neo and our legal contributor On Tony’s take two 50% off planned giving accelerator. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. It’s always my pleasure to welcome back Gene Takagi to the show. You know who he is. It’s almost it’s almost superfluous for me for me to do the intro. But but jeanne deserves it. He’s well credentialed and I want to make sure that he gets his due introduction. Gene Takagi are legal contributor and managing attorney of Neo, the nonprofit and exempt organizations law group in saN Francisco. He edits that wildly popular nonprofit law blog dot com, which you should be following and he is a part time lecturer at Columbia University. The firm is at neo law group dot com and he’s at jeanne, Welcome back.

[00:02:11.94] spk_1:
Great to be back. tony how are you?

[00:02:13.98] spk_0:
It’s always a pleasure. Thank you. I’m well happy New Year.

[00:02:17.99] spk_1:
Happy New Year.

[00:03:05.74] spk_0:
Thank you. And let’s, so let’s let’s talk about the new year. Um and just before we do I want to remind folks that not too long ago we have genes one, our legal audit which you might want to look back at. That was a sort of a condensed version of some of what we’re gonna talk about today. Although we have lots of new subjects to talk about today too. But there was the one our legal audit and also with jean recently Risk management Part one and then a different show. Risk Management Part two. So those are resources that you can look back at just from a couple of months ago and we’ll go into and and those go into more detail on some of what we’re gonna talk about today jean. Uh where would you like to start for the new year, throw it open, throw it, I throw it open to you. What would you like to start with?

[00:03:58.64] spk_1:
So it does seem like kind of this chance that restarting, getting reenergized and thinking about our organizations and where we wanted to go. Um Yes, we have to keep in mind some of those um risks that we talked about in previous shows but we also have to think about kind of where we want to go. What of our, what our dreams are um what our vision is for the organization? Had we properly captured it? Um, what is our mission? Is that sort of properly captured? Is everything because our environment seems to be changing week by week. It seems to be new stuff that comes up that we have to consider. Are we still on track with where we want to go? So having these sort of broader discussions. I like sending those organizational priorities for the new year.

[00:04:06.64] spk_0:
Okay. Okay. Um, what would you, what what priority would you like to start with?

[00:06:07.94] spk_1:
Sure. So, um, being the lawyer, I say, okay, let’s talk about legal compliance just to make sure we’ve got some systems in place, mission and values, which we’ve frequently emphasized them when we’ve had discussions about not just existing to further your mission, but to do it in a way that advances your values and if equity and inclusion of part of those values, then, you know, that’s something you should be thinking about as well, definitely considering some of the trends that are out there. And I know we’ll get into that a little bit later in the show, but also including kind of the times that we’re we live in and acknowledging that yes, we’re under the impact of Covid, which seems to be shifting constantly in both how it’s affecting us and how we might need to respond to it. The great resignation, which certainly isn’t completely unrelated to the Covid, but that is a huge trend and movement as we’re trying to figure out how do we keep our workers, are we burning them out? The mental health issues that are, you know, hitting pretty much all of us, um, from the isolation, remote, working from the uncertainties of health, from sick family members and loved ones and all of that and saying, well, are we going to be able to keep our team together? Should we be keeping our team together the way we’re working now? Do we need to shift our work practices? Do we need to shift what type of benefits for giving to them? All of those things have got to be sort of raised? And I would say raise at the board level, you know, together with the executives and senior management team. Let’s talk about it. Let’s brainstorm think about this and get what our organizational priorities are this year, because things can change rapidly and rapid change if you don’t have any plans um, to anticipate some of them don’t have contingency plans can force you into very, very stressful times where immediate actions are necessary and you can sometimes make bad decisions if you’re under that type of time stress. So

[00:06:18.63] spk_0:
then it because then it becomes a crisis

[00:06:20.30] spk_1:
right? Exactly.

[00:06:48.64] spk_0:
And and a crisis in staffing, especially knowing how hard it is to hire folks now, you know, you talked about, you know, keeping the team together or should we keep should we keep the team together? But, you know, I’m sure you’re seeing it with your clients. The difficulty in hiring, you know, you want to, that, that, that’s a, that’s a huge factor in, you know, do we have the right team? Well, putting the right team together, it’s gonna take a lot longer than it used to?

[00:08:01.94] spk_1:
Yeah, absolutely. And if you’re talking about retention, you got to figure out what are you going to invest in this? I know you want to, you know, provide as much as you can to your beneficiaries. But if you’re not really considering the team of people in, you know, on your team that are providing those services that are supporting those services, the whole thing can collapse. So just remember where your infrastructure and when your groundwork is and how important the human resources are in your organization to being able to deliver services and provide goods for your charitable missions. So really important not to neglect that. And that requires an investment both on retention and if you aren’t able to retain everybody and you need to recruit, you’re gonna have to be able to show what you’re going to invest in those new employees and give them time to learn. You can’t expect them to perform like experience people have, um, in the past. So it’s, you know, some patients, um, and definitely investment in education and training and orientation, um, and all the rest and again, um, to the extent that your executive is probably also overwhelmed with everything else going on. The board is really pivotal in trying to be able to come up with plans that help invest in their teams.

[00:08:10.44] spk_0:
This goes to legal audit the conversation we had a few months ago. You’d like to see a review of governing documents to.

[00:09:31.74] spk_1:
Yeah, I I always think that that’s a great thing to check out in the new year. Just even if you have somebody, you know, a higher up kind of a board member or where your executive or senior manager take a look At your articles and bylaws, even spending 30 minutes on it and saying is our mission really reflected in these documents or have we evolved into something else? And these documents are like stale and old and outdated now in that case those documents still rule. So if you have the I. R. S. Or a state regulator coming in audit you, if you’re not performing within that mission statement in your articles and bylaws, you could be acting completely out of compliance and worst case scenario, you can really threaten the organization through penalties, etcetera. So that’s something to take a look at. Also just take a look at a lot of organizations. I find out their their boards, they’re like, oh, you know, we forgot to elect them. You know, we, we, you know, we’ve had terms, you know of two years but they’ve been on for like 10 years and we’re happy with them. So we just don’t do elections that can be really, really harmful as well for multiple reasons. But you know, sit back, see what you’re doing and what you’re not doing consistent with your articles and bylaws. And if you need to change things determine that you have to change. And if you need the help of a lawyer, try to find somebody that can help you with that. And there are some good resources on the web as well.

[00:09:48.64] spk_0:
What’s, what’s one of the good resources?

[00:10:15.04] spk_1:
A little bit of a self plug because I’m a board member, but board source has excellent resources on board of directors, governance things of that nature. Stanford University also has excellent resources in terms of sort of template documents that are just a guide for nonprofits. It’s not one size fits all, but it just gives you a general idea about how some things operate. Um, so those are just too good resources to look at.

[00:10:18.35] spk_0:
And, and again, we, we talked about this extensively in the show called your one

[00:10:24.34] spk_1:
hour legal audit.

[00:10:30.14] spk_0:
You have some last one. You have some financial performance advice for the new year.

[00:13:04.74] spk_1:
Yeah. Well I think probably, um, most people take a look at their financials throughout the year on the board level and on the executive level. Um, but the new year, you’ve actually sort of completed your financials and they might not be, um, in final form yet, but you might have what some people call it pro form, a set of financials, um, sort of close to final, where you get to assess what you’ve done in the year, you know, for, for most organizations, this goes without saying, but you want to make sure that you’re performing in a way that you’re not becoming insolvent. So you want to make sure what your balance sheet looks like and whether you have net assets, um, if you don’t have net assets, that means that you are either insolvent or, you know, in the zone of insolvency, you have to think about how you’re going to address that very serious issue. And I would say you don’t have internal expertise on dealing with it, get outside help right away if that’s the case. But your, your statement of revenues and expenses as well, are you sort of operating what people call in the black so that there is, you know, some net income in there or are you operating in the red where you’re very concerned because you’re losing money, timing is always important. So it’s misleading to look at one year in isolation because sometimes grants are given in one year, but they’re actually uh received in another year. So the timing issue can pose different challenges about reading financials. So you want to be able to read it sort of collectively through a multi year period just to know where you stand. And again, if board members aren’t able to help an executive and the executive feels like they need some help with understanding financials, to reading financials invest in everybody’s training in this area and there are a lot of people, even pro bono, that, that are offering this training pro bono and a lot of resources on the web. So make sure you understand your financials and what they’re indicating. You don’t need to know every single financial ratio that you know, business people use, but just generally no. Are you healthy financially or are you trending bad? And if you have several years where you’re in the red, where you, where you’re not making money, it looks like you’re bleeding money, then that might be indicative of some change that’s necessary in order to make your organization sustainable on an ongoing basis. So again, you don’t want to hit crisis mode financially. So this is a good chance, take a look at your financials, not just last year, but over a multiyear period and see where you are, get help if you need it.

[00:15:08.54] spk_0:
We have a show that I replayed, oh, I think within the past six months, uh, the guest was Andy Robinson. So you could go to tony-martignetti dot com and just search his name Andy Robinson, but it was something like teaching your board basic financials and he wrote a book, I’m pretty sure it was published by charity channel, uh, with, with a title similar to that. So if you, and the show is a few years old, but reading financial statements and and balance sheets hasn’t changed much in probably 100 years. Um, so it’s just all in and out now now, it’s all in Excel. But uh, so if you’d like some help with that, there is a, there is a show where Andy Robinson was the guest talking about, you’re improving your boards, financial literacy. It’s time for a break. Turn to communications, your 2022 communications plan. Does it have lots of projects? Lots of writing projects? You can get the biggest projects off your plate and outsource them. Free up staff time to devote to the work that it’s not feasible to have others doing for you. Like the annual report, just because it’s been done in house in the past, doesn’t mean it has to be done in house this year. What about research reports, White papers, your other heavy lift pieces. Do you need help with writing projects in 2022, Turn to communications, your story is their mission turn hyphen two dot c o. Now, back to legal outlook for 2022 with Gene Takagi. Okay, so let’s talk about some trends then, jean, you have a, you have a case we haven’t talked about, we haven’t talked about an actual case for a while. Americans for prosperity.

[00:19:16.54] spk_1:
Yeah. So um that was a huge U. S. Supreme Court case at least huge for the nonprofit sector. Um, but with deeper implications for if I if I’m not over hyping it for democracy itself. So um so americans for prosperity, Foundation versus Banta, who was the California Attorney general basically it was about the schedule be disclosure of donors who donated more than $5000. So for nonprofits who know how to prepare their form 19 nineties, you’ll know that on schedule B of your form 1990. Eur actually disclosing to the I. R. S. It’s not public information. Um But it’s to the I. R. S. The name and address of your donors who donated more than $5000. Now that hasn’t changed, you still have to disclose it to the I. R. S. But certain states, including California where volunteers from as the attorney general um New york I believe New Jersey I believe Hawaii also included Um all asked for a copy of the 990 including an unredacted schedule B to be given to the state regulator because they also want to look at that information for state law compliance purposes. A lot of them are concerned about donors who give money but get something back in return that’s not being disclosed. So if they ever have to have an investigation of that, that information turns out to be very helpful to the state to be able to say ah they were giving money but they also took in this huge benefit, this huge contract for example, which you know, reap them millions of dollars. Um So there was a legal case um that went up through the courts um finally hit the U. S. Supreme Court and the A. G. Lost here, The California G. Um So the court decided and we know the court’s composition is fairly conservative right now. The court decided that uh the states don’t have this right. Um It was based on the fact finding of the lower courts which is a little bit unfortunate because if the higher court could have considered more facts, then it might have been decided a different way but based on kind of how how our legal system works and and and how the Supreme Court works and the composition of the Supreme Court. They held that, hey this is not disclosed able to the states essentially that’s the impact of it. The broader impact on why I said democracy might be uh issue here is because well what about sort of campaign finance disclosures? And what about the I. R. S. Should they be entitled to that information as well? So it’s really helpful in compliance. But the counter argument and why some organizations charities, we’re also um not in favor of the disclosures is because of the protection of the donor. And the old case cited um in this part of the argument was an N double A cp case that said, well, if we disclose our donors, the KKK had threatened to kill all of them. Um And you can see why privacy was important in that issue and this issue, it was nothing like this. I think it’s a Koch brothers, um, kind of funded charity. They wanted really to keep their identity, um, more hidden because they have desires to influence politics in many ways. And if it always gets associated with them, then the impact lessons. So if they can look like they’re ground swells of movements that are funding these things rather than individual donors, um, it looks better for for what they’re trying to do. So that’s, you know, that’s what’s at stake here is not only are the state’s not allowed to get this information that would really help them in state law enforcement of whether there’s diversion of charitable assets that benefit

[00:19:29.74] spk_0:
donors. But

[00:19:30.15] spk_1:
in the broader sense, are we going to allow more dark money to enter into our political systems without knowing that there are donors, heavy donors that back these, you know, politicians or political parties or political movements. So that’s the scary part about this decision.

[00:19:57.94] spk_0:
What’s the, I think infamous Supreme Court case that that allowed the allowed the dark money into, uh, into politics. United

[00:20:02.73] spk_1:
Citizens. United

[00:20:27.54] spk_0:
United. Yeah. Um, All right. All right. And so I just want to repeat this. So this case that Gene was just talking about is americans for prosperity Foundation V. Banta B. O. N. T. A. What about crowdfunding you, you point out that there’s a new crowdfunding law. Hope is this a little more optimistic? I hope?

[00:21:22.54] spk_1:
Uh, well, depending upon how you look at it. And I think in one sense it’s inevitable. Um, a lot of our laws that are developed regarding fundraising, um, don’t even, and never anticipated the internet, right, johnny. So, uh, you know, now crowdfunding platform is, you know, not just the internet, the use of the internet, but it’s a lot of different for profit companies getting involved, um, to enable charities and organizations and people who are not charities to raise funds that look like they could be for charitable purposes, Right? So you want to help victims of a fire, but you want to help them directly, because some individuals said, I want to start a Go fund Me campaign, right? And say, well, you know, chip in 50 bucks and let’s try to get these people some help doesn’t, that doesn’t go through a charity. Often it just goes to this person, right, who promises to give these other people money

[00:21:35.90] spk_0:
and go funding the person’s goodwill. Honestly, yeah,

[00:21:58.14] spk_1:
Go fund Me is, you know, reacted to this and they’re probably the biggest crowdfunding platforms. So they’ve reacted to this in terms of having their own internal policies to help prevent a check. But overall, there’s, you know, hundreds, if not thousands of crowdfunding platforms out there that do this to make a profit. Um, and they may not have those types of controls or checks to not to just, you know, prevent somebody from saying, let’s raise money to help fire victims and then just keeping it. Um, so,

[00:22:11.97] spk_0:
what, what, what is the import of the law for, for us?

[00:23:21.34] spk_1:
So I think the import of the law is, if you’re going to get on and decide, hey, we want to do crowdfunding, um, you’ve got to select your platform provider carefully and this law, which is in California, but is likely to spread across different states in various forms, says, well now, if you’re gonna do that, you’ve got to make sure that this crowdfunding platform is registered. Um, and they’re reporting and there are all sorts of rules involved. So if you have a contract with them, it should be subject to these rules that might say things like, well, if they collect money, they have to give the money to the charity within a certain time period. Right? So they couldn’t say, well, it takes this administration, so maybe a couple of years before you get that, you know, nobody’s gonna be happy with that, but without rules, why not? Um, so these are, this is why it’s important for charities to have rules. The actual details of the rules. So I can see why some people have some, some issue with them. And we haven’t had all of the regulations yet, they’re still in discussion. So this is very, Still very trending, but the crowdfunding law, the law, the general law that’s in place now will become effective in California in 2023, and the regulations are being developed right now,

[00:23:58.04] spk_0:
let’s turn to remote work, which is obviously so much more common now. Hybrid work, you know, return to work dates are being pushed off and off. Um What what are what are what are what trends are you seeing? What should be on, will you be on the lookout for with respect to uh remote work and employment law issues?

[00:25:10.84] spk_1:
Yeah, it’s, you know, this is a really tricky area. Um you know, for sure, Covid where people were suddenly not permitted to to go indoors in some cases for months. Um and who knows if, you know, we’re going to return to some of those scenarios with the omicron variant out there, We’re hoping that it’s less um severe in terms of its impact, even if it might be a more transmissible, but if we if we keep worrying about this and saying, you know, our workers aren’t comfortable coming to work, even if the law allows them to come to work. Um Maybe we’re going to let people work remotely, and many of us have gone full remote, some of us have gone back to partial returns, some have gone back to full returns and then gone back, you know out the other way and said, okay, you know, it’s at the workers discretion whether they want to come in or not. So what makes us a little bit tricky. Um is that you don’t control the work environment as the employer, if they’re working at home, right? Um but that becomes the work environment, if they’re doing work from home, that’s their work environment, and, you know, the employer is responsible for the work environment if they should get hurt, for example,

[00:25:22.94] spk_0:
um

[00:26:56.24] spk_1:
So it becomes a little bit tricky about, well, how do you, how do you handle that for workers comp reasons, for safety reasons, for OSHA reasons? Um and I think there’s an understanding by regulators that, you know, this is out of control of most small businesses, small charities and, you know, to to that extent, we’re not really gonna look to enforce things on that level, but there are other things that, that are also concerning, because not everybody goes when, when they decide to work remote, we work in the same city or in the same state, right. A lot of us um have decided to, you know, maybe move back with family, which might be in another state. In some cases it could be another country, or some of us have decided to travel and spend a little bit of time, you know, in different places. Um So how does allow treat that? And basically, you know, the old rules, which are the rules, many of us are stuck with. Um the old rules are, well, you have to comply with the laws where the worker is doing the work, so if you have a worker in new york who’s now working remotely and came out to florida, well, then all the employment rules regarding worker safety and wage and hour laws and salary, overtime, sick pay benefits, all the florida laws apply to that worker now. Um, and so now it’s like, well, you’ve got to work in florida, you’ve got to think about, are you qualified to do business in

[00:27:00.21] spk_0:
florida,

[00:27:36.94] spk_1:
charity registration in florida? Um, and you may have had no connection to florida before, but all of a sudden you have a worker working there. Um, so a few states, um, and they’re not very many, but a few states that said, well, you know, during covid, we’ve got these temporary rules where we’re relaxed, where you don’t have to do that. And there’s also state tax issues, right? State payroll taxes, and, and other times, all of those things, some states said, you don’t have to worry about it. A lot of organizations are simply not complying with, But,

[00:27:37.49] spk_0:
but you said it’s only a handful of states that said, we’re we’re we’re not enforcing

[00:27:42.14] spk_1:
right. Exactly.

[00:27:43.33] spk_0:
The majority of

[00:29:01.34] spk_1:
states are, Yeah, well, I shouldn’t say they’re enforcing, but they haven’t the old laws or the existing laws still apply. There are no transition laws, so you’re out of compliance. And if they do enforce, which might not be like a, you know, a regulator coming out to you and saying you haven’t done this, it may be your employee is unhappy with something you’ve done, who’s working there and said, hey florida law applies and you haven’t been complying with the florida sort of benefits laws that, that apply. And maybe I could give you more specific example because san Francisco, if you came out to California, your remote employee came out to California, san Francisco has mandatory six hours and not a lot, a lot of states don’t have sick our pay. Um, but all of a sudden if you’re not paying them and they get wind of that, hey, you were supposed to pay me for this and you haven’t been, it’s the employee who could launch the complaint. Um, so it’s just to be careful of these things and, and just as your strategy for charity registration, tony when you’re sort of fundraising all over the country to, to, you’re not going to be able to maybe do all 50 states at once, but just to make sure you’ve got a plan to attack this kind of the same thing here. Um, check out where your employees are, you should know exactly where they are and check each state in terms of how strictly, maybe in terms of enforcing this and start to slowly comply

[00:30:12.74] spk_0:
the implications of state law. Yeah. What about the technology remote work? I don’t know if that’s all been figured out yet and maybe there were, maybe there were stopgap measures during the, during the, the darkest part of the pandemic, but but going forward, you know, tech technology has to be, has to be upgraded. You know, are we gonna, we’re gonna continue providing work phones? Are we going to provide work laptops? What about paying for internet access over the long term? I mean, you know, the internet access can be costly. And if if work is taking up a lot of the bandwidth, isn’t it appropriate for an employer to be paying a portion? And then how do then how does the, how does the, what’s the mechanism for the employee verifying how much they pay and you know, and then what percentage are we gonna cover of that, all the all the technology issues around, around remote work.

[00:30:58.44] spk_1:
Yeah, def definitely. And and as an as an employer, I would say, beyond sort of any legal compliance issues, um, you’ve got a, I think an ethical issue to make sure you’re providing your employees with the tools to do their job. And if you’re allowing remote work, you should make sure that they have the tools. So if they need a computer to be able to access it, so they’re not, they’re not using their personal computer. Um then you should make sure that happens same thing with the telephone. And if, you know, if those are going to be dedicated to work, um it should be explicitly written out that way. But if you force them to use their personal things, there are some states that actually do have laws that say you must reimburse your your employees if they’re using the tools that they need um for for remote work, but just ethically. Yeah.

[00:31:18.74] spk_0:
But then that’s then that raises security issues too. Absolutely. They have any kind of HIPPA protected information on their personal laptop. That’s gonna be a big problem. That that’s I think that’s probably a mistake if you’re dealing with that kind of data. But um

[00:32:01.74] spk_1:
and don’t we probably all have that type of stuff on our personal computers, right? You know, sort of HIPPA protected? We may have had emails like that are saved onto our computers. Um Right. So if if the computer is also being used for work and there’s a work issue that causes that data to be taken or corrupted, like, you know, what’s the employer’s responsibility if they hadn’t provided an alternative, it’s a great point

[00:32:50.94] spk_0:
and and it’s not only hip hop data, but other other personalized data that that maybe on now the personals, the employee’s personal computer, desktop or laptop or phone, you know, how is that? How is that private private data protected? Do they have malware prevention on their on their personal devices so that so that company emails that they’re that they’re using on their personal device aren’t potentially compromised. I mean, the use of the personal equipment raises a lot of technology and and Legal privacy and ethical issues to your right. I mean, if the person is eight or 10 hours a day, they’re using their personal laptop, shouldn’t there be some compensation for that?

[00:34:46.94] spk_1:
Yeah. And I think minimally because no matter you know how much we encourage people to have sort of work dedicated computers provided by the workplace, people are going to use their personal phones. I mean we can go back to the politicians who have all been using their personal funds. So we know it happens regardless of what the best practices. But what can the employer do, they can pay for all of that data protection stuff that that computer should have. Right, tony because now it has much more sensitive information on there and the employer is partly responsible for some of the other information that could be on there and hack. So yeah, employers should help. And that kind of leads us to the whole data security issue as well that everybody’s got to be paying attention to now is really um nonprofits have important data in their system. Some of it is, you know, hipaa protected some of it is other privacy information. You may have employment reviews on there that you don’t want going out into the real world or client, you know, feedback which might be positive. Some of it might be negative sensitive communications, all sorts of stuff that you might find on a work computer and if it gets hacked and if that data gets stolen or if somebody holds the system which might run your programs or aspects of your programs if they cause your system to crash and say that they will only sort of fix it because they’ve hacked and caused the crash. If you pay a ransom, you’ve got all sorts of problems. Uh and maybe some of that may have been mitigated with some basic steps like you mean you’re not going to be, well even the U. S. Government can’t prevent all hackers. I think we we know that, but you can take reasonable steps based on your budget, whatever that might be to to control some of this. So it really is important to have some safeguards.

[00:34:55.74] spk_0:
Another potential category of data is the G. D. P. R. Data. If if if your nonprofit is implicated at all in in that european common law law then or the yeah then then you’ve got those concerns as well.

[00:35:08.94] spk_1:
Yeah, absolutely. So if you have european donors or you’re doing business with any european entities and you have data from those entities or persons be careful and again, remote working can trigger some of that. So if if they decided to, you know their home or or they want to travel to europe and do their work from there.

[00:35:28.74] spk_0:
Um,

[00:35:29.74] spk_1:
all sorts of implications.

[00:37:44.03] spk_0:
Yeah. Absolutely right. People very good point where where people are sitting and where they’re planted when they’re working, It’s time for Tony Take two We’ve got 50% off the tuition for planned giving accelerator. That’s because just last week A donor stepped up someone who believes very deeply in planned giving accelerator and he is offering to pay 50% of the tuition For the 1st 10 nonprofits that take him up on his offer. A couple have already done it as of the time I’m recording, but there are several spots left. So if you’ve been toying with the idea of planned giving accelerator, it’s never going to be cheaper than 50% off. What the way this will work is. You’ll pay the tuition in full, which is $1195 for the six month course. This donor will then make a gift to you of half of that. So you’ll have a new donor, he’ll pay half your tuition. So it ends up being 50% off the full tuition cost. I know the donor, it’s someone I trust you have my word. Your final cost will be half of the full tuition if you’d like to jump on this and be one of the members of what is now our february class. I want to give people enough time for this because it, it just came in last week. So I’m extending, we’re, we’re not gonna start the class until february if you’d like to be part of that february class At 50% off email and we’ll, we’ll talk about planned giving accelerator and whether it can help you launch your planned giving program. Mhm. tony at tony-martignetti dot com. That’s me. That is Tony’s take two, We’ve got boo koo but loads more time for legal outlook for 2022

[00:38:01.22] spk_1:
one and one of the tools to think about and I’m a little bit guilty of this as well um is be careful of public wifi um because that often is an entryway for a

[00:38:03.83] spk_0:
hacker. Yeah, that’s totally unsecured airports, airplanes,

[00:38:09.89] spk_1:
coffee shops,

[00:38:13.42] spk_0:
coffee shops, Starbucks, wherever those are, all unsecured networks.

[00:38:29.32] spk_1:
Right? Meaning that there is the potential for somebody in there who has some malicious intent if they want to be able to hack into to your computer through that public wifi. Unsecured wifi. And there are different systems um but maybe one of the simplest for for those of us who have smartphones, which I think is most of us is you could actually create a sort of a private wifi just

[00:38:52.92] spk_0:
for your smartphone, right? Hotspot? Hotspot and don’t use the unsecured wifi to connect to, you know, use the uh the four G or five G or the five GHZ et cetera.

[00:38:56.17] spk_1:
Right? And that’s something an employer could pay to make sure that the employee has significant data and data plan that can incorporate all the additional data that they may need in their plan because of the work. So again, that would be reasonable and and ethical for the nonprofit employer to pay for their employees to have a higher data plan. Um, if they’re going to to use that and insist as a policy that they do not use public wifi. If they’re using a work computer or a computer that contains work and sensitive information,

[00:39:36.52] spk_0:
all you need is to transmit an email on, on an unsecured wifi that that has a donors credit card number, maybe

[00:39:38.77] spk_1:
native

[00:39:58.12] spk_0:
birth address, name any, any two of those things together, uh, hacked could be very detrimental to that donor. And you know, whether it ever gets traced back to you is is uncertain, but you’ve, you’ve put your donors privacy at risk in a simple email that has any two of those pieces of information.

[00:40:04.31] spk_1:
And it appears to be a myth, um, when people have relied on, they’re not going to go after us because we’re nonprofits, people don’t go

[00:40:12.29] spk_0:
after. Oh, that’s bullshit. Oh, that’s ridiculous.

[00:40:14.57] spk_1:
Right?

[00:40:22.61] spk_0:
I’m working with a client now that, that is a, is in new york city that’s, that’s, um, victim of, of a malware, uh, ransomware, so brought me a ransomware attack.

[00:40:27.61] spk_1:
Yeah.

[00:40:40.41] spk_0:
And they’re keeping it quiet so I’m not permitted to say who it is. But um, yeah, they’ve, they’ve been, they’ve been hindered for weeks and weeks with data accessibility issues.

[00:40:42.71] spk_1:
Yeah. And it’s much more common than we think because organizations do want to keep it quiet because if there is a vulnerability, they don’t want to come and say other hackers come come and attack us, we’re vulnerable. So it may be much more pervasive than we think

[00:40:57.61] spk_0:
and that myth also breaks down along ideological

[00:41:00.04] spk_1:
lines.

[00:41:21.61] spk_0:
Some some person on the left may may attack an organization on the right. Some person on the right may attack an organization on the left just because of where the organization stands with respect to the person’s political and ideological beliefs that that that’s enough. It doesn’t matter that you’re a nonprofit. It’s it’s your ideology and your mission. It has nothing to do with your tax exempt status as to why somebody would or wouldn’t go after you.

[00:41:28.41] spk_1:
Yeah and um in these times that those ideological differences have been very um pronounced and. Yeah.

[00:41:41.11] spk_0:
Alright where else should we go? Gene with trends, trends for the new year. Come on.

[00:44:24.69] spk_1:
Um Let’s talk a little bit since we’re talking about technology and data security. Let’s talk a little bit about crypto currency because I find that pretty fascinating. Um There was an organization that came together and bid $40 million on a copy of the U. S. Constitution just a few weeks ago. Um That money the $40 million plus more I think about 47 or $48 million was raised for that purpose in less than two weeks. Um So um Cryptocurrency donors um often have made a ton of money because of the appreciation of cryptocurrencies like. Bitcoin for for those who aren’t super familiar with it. Um And if you donate Cryptocurrency, it’s like donating a non cash asset, meaning that if You bought crypto currency for $1,000 10 years ago and it’s worth now several million dollars, which if you bought the red Cryptocurrency, that might be the case if you sold it, uh you would have a lot of taxes to pay on that appreciation right? The several million dollars of appreciated income that would be subject to capital gains tax. Um So if you sold it and donated some of the proceeds, that would not be a very tax efficient way to donate. When if you donated the Cryptocurrency itself, what you do is you get to take a fair market value deduction of the several million dollars. So you gave several million. So potentially you could deduct that is a charitable contribution and pay no capital gains tax because he never sold it. Um So very tax efficient way of giving um And Cryptocurrency people, wealthy millionaires and others who decided that they wanted see some positive impact um from giving these gifts are are making gifts of Cryptocurrency now and that’s that’s partly why I am so many gathered together to say hey we’d like to fund a charity to buy a copy of the U. S. Constitution so that we can ensure that this constitution is always for the public’s benefit and on public viewership and not sitting in somebody’s house, you know for for their own prestige. Um But that really opens it up, cherish. Think about there’s a lot of these people who made quite a bit of money on Cryptocurrency and a lot of younger people are investing barely heavily in Cryptocurrency now. So it’s something to not sort of blow away if we’re um kind of our age or older, tony to say, Cryptocurrency, what is that? It’s it’s something to really embrace now because it’s it’s not just this exotic tool now, it’s part of regular investment portfolios.

[00:45:56.79] spk_0:
Absolutely, it’s it’s it’s coming and and jean this dovetails perfectly with Our November 15 show of 2021 Bitcoin in the future of fundraising with my guests who are an Connolly and Jason shim who wrote a book Bitcoin in the future of fundraising. So, um it’s do you it’s just more, more sage advice that crypto donations are coming. It’s not a matter of if it’s just when are you gonna get on board now or you’re gonna wait two more years and potentially be behind the curve. Um and as an and Jason pointed out today, there are so few organizations accepting crypto that a lot of people are just searching for. Where can I donate? Cryptocurrency and probably largely, Gene for the reasons you’re describing there, They’re looking for a direct crypto donation to help them with substantial capital gains. Are there specific legal implications of crypto donations that that we need to be aware of or or is it just, you know, you just want folks to know that this trend is, it’s in the middle, it’s happening right now.

[00:48:15.97] spk_1:
So I think, you know, one of the reasons why charities are afraid to take Kryptos because they don’t know what laws apply when they receive the crypto. They’re like, what do we do with this? Um, and there are ways to easily cash that out and turn it into us cash. And in fact, most charities that accept crypto and they’re not a lot, you’re right, tony but most carriers that accept them liquidate them immediately turned them into cash and deposited into fiat currency, like regular paper currency, um, in their bank accounts. Um, So they’re not holding onto the crypto very long at all. One of the reasons why that’s, that can be very important is because there are prudent investor rules for charities that don’t apply to for profits that basically say if you’ve got investment assets, charities, this is not just endowments, but just any sort of investment assets for reserves or for a capital fund or anything you can’t invest. It speculatively, you couldn’t just throw it all in like Apple stock, um that would be too speculative. You have to look at it, uh, through what financial professionals, investment professionals called portfolio theory, are you sufficiently um, have an investment portfolio diversified across several different asset classes? So if one bombs, you haven’t tanked all of your money. Um, and the board of directors have a fiduciary duty to live up to the prudent investment laws that also sort of follow this portfolio theory of how how have you actually divest? Sorry? Um diversify Yeah. Um your your funds across different investment classes to protect yourself and there are different considerations that go along with that. Um But that is one reason why you don’t want to get stuck with all of your investments being in crypto because crypto maybe one of the most volatile type of investments where it can double in a matter of days and it could tank and disappear in a matter of days as well. So depending upon what type of Cryptocurrency you have and there are hundreds if not thousands of crypto types of Cryptocurrency um that have evolved in a lot of people and organizations that are making new coins all the time. So new new forms of Cryptocurrency arising and while we talked about crypto as being a part of more investment portfolios as a normal part of of investments. Now it’s not every Cryptocurrency that would be in that it’s certainly one

[00:48:47.07] spk_0:
1000 right? Some of these thousands trade for thousands of pennies, Thousands Yeah thousands of pennies even you know .0001 three zeros and a one is you know is the value of the currency. Um So. Alright that’s perfect as I said, perfect dovetail to that to that uh that november show because you’re you’re raising the prudent investor rule and and uh portfolio theory.

[00:50:07.66] spk_1:
One more thing on this, tony the forms the I. R. S. Forms for when you get Non cash contributions of more than $500. And how quickly you sell them. Um Also applies to form 82 83 is what the donor needs to sign when they give a non cash contribution of over $500 of over $500. And if it’s over $5000 which many crypto gifts are, they have to get a qualified appraisal for this. So that’s really important. And the Dhoni which is the charity has to sign that form for the donor. And then if the donor the Dhoni, I’m sorry the charity sells it within three years, they have to sign a form 80 to 82. Yeah so that’s again it’s not terribly hard. It sounds like a lot of just legalese I’m blabbing out but it’s not too hard but just take a quick look at those. If you decide that you want to start getting Cryptocurrency and at worst you might ask your donor to find a donor advised fund that takes crypto turns it into cash and then disperses it to the charity. So there are donor advised funds that do that

[00:50:15.76] spk_0:
interesting. Okay so so a Cryptocurrency donation is a non cash donation

[00:50:19.90] spk_1:
correct?

[00:50:58.76] spk_0:
Okay and for non cash donations of $500 or more, That’s where your your donor has the implication of i. r. s. Form 82 83. And you as the charity if you sell it within three years which your advice is that they do because it’s of its volatility Then you’ve got the implication of i. r. s. Form 80 – 82. I always thought those were backwards. The donors should have 80 to 82 because that comes first. Then comes 82 83 from the don’t to the Dhoni first the donor has it. Then the charity should be 80 to 82 82 83. But it’s not It’s 82 83 for your donor and 80 – 82 for you.

[00:51:06.16] spk_1:
That sounds like larry david logic. But that’s how I think as well.

[00:51:10.58] spk_0:
Yeah. I’ve been accused of being larry David in lots of ways. Including my my hair when it’s long like it is

[00:51:16.23] spk_1:
now. I’ve

[00:51:33.46] spk_0:
been accused of looking like Larry David. But we’re not complaining, we’re helping. That’s all right. Um Alright let’s leave us with something else. Another trend for the new year that you want us to be thinking about gene. Um

[00:51:36.96] spk_1:
Let me talk a little bit about diversity equity and inclusion. Since we’ve we’ve talked about that in the

[00:51:42.21] spk_0:
past. You could search jean and I have talked about D. I a bunch of times. But

[00:53:46.05] spk_1:
yeah please. You know I think in combination when we talk about the great migration and how the pandemic might be affecting different populations in different ways that we start to think again about kind of? Well if our charity is doing some some mission and we might not think of that mission as being really reflective of of specific races or or anything like that. Um But could D. E. I. B. Important anyway. And I think that’s where we get to think about. Well if we had more perspectives in our organization, if if we’re lacking some of those perspectives now, for example not having a lot of latin thinks Hispanics or blacks or asian americans on the board or in the leadership group, maybe we’re not really thinking about how our services that we’re delivering are affecting different populations differently. Maybe we’re just sort of providing services but we’re focused on urban centers or urban centers where if we’re center based, our center based is in neighborhoods that are much more accessible to uh white populations versus other populations. So getting different perspectives, even if we think of ourselves as being race neutral, which is kind of a charged term. But I’ll just use it for for these purposes. If we think some of us think of ourselves as race neutral and therefore we don’t have to get involved in the D. E. I work. We want to say, well don’t we care about serving our population in a way that’s kind of fair and not just favoring one segment over other segments or just totally neglecting certain segments of the population because they don’t have the same type of access. Have we ever thought about those things and having diversity can help us think about those things. Um, but it has to be done obviously in an inclusive way, which we’ve talked about and I know we just have a few minutes here, but it’s

[00:54:03.34] spk_0:
sort of it’s touching on, you know, not knowing what you don’t know without without having the perspective of diverse populations on your board, in your leadership, then you don’t know how you’re not serving other non white populations. Yeah. And even when we were perceived by other by by non white populations.

[00:55:32.64] spk_1:
Yeah, exactly. And even when we say, well when we look at a group of people and we say diversity, you know, that has one meaning. But sometimes when we just look in our inside our own heads, uh, and when people go unconscious bias, for example, try to think about what that is. It’s like, well if we don’t have the benefit of having different perspectives are being exposed to that all of our lives and none of us have all of the perspectives in our lives. So we were all going to be guilty of some sort of unconscious bias because we just don’t know any better. We we haven’t had other information that would have help develop a sensitivity or understanding or just knowledge of some of the disparities that are out there. So, and and how our organization can be either helping those disparities or hindering them. So just getting a sense of where we’d like to go. I think that can improve employee retention. It can lead us to new areas of employee recruitment and it can make us more relevant as organizations in the future, where if we’re not addressing some of these things, we could find ourselves becoming irrelevant less attractive to future donors, especially younger donors who this is very important to. Um, and so that’s my, my closing thought. Mhm.

[00:55:48.24] spk_0:
All good thoughts for uh, for the new year for 2022, Gene Takagi are legal, legal contributor, Managing attorney of Neo. You’ll find him at nonprofit law blog dot com. He’s also at G attack and you’ll find the firm at neo law group dot com. Gene again, thank you very much. Happy New Year.

[00:55:57.39] spk_1:
Happy New Year. tony

[00:56:47.13] spk_0:
next week. I’m working on it very diligently. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. We’re sponsored by Turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Do you need help with any of those ready projects in 2022? Get them off your plate. A creative producer is claire Meyerhoff. The shows social media is by Susan Chavez Marc Silverman is our web guy and this music is by scott stein. Mm hmm, thank you for that affirmation scotty Be with me next week for nonprofit radio big nonprofit ideas for the other 95%. Go out and be great.