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Alexa Cortes Culwell & Heather McLeod Grant: Prosperity Paradox
Silicon Valley boasts 76,000 millionaires and billionaires and revolutionary innovation. Yet local nonprofits struggle to meet demand and suffer inadequate reserves. Researchers Alexa Cortes Culwell and Heather McLeod Grant explain the disconnect⎯and the lessons for your organization. Their report is “The Giving Code.”
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Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent on your aptly named host we have a new am and fm outreach director betty mcardle she’s, based in portland, oregon. She has a long background in community radio, and she was recommended by her predecessor, gavin doll. I appreciate that, gavin, but he’s got lots of experience. She loves non-profit radio, so i know that we are in good hands as we bring mohr affiliate stations to the flock, the family, the foundation, the community very glad you’re with me. Betty, welcome. Oh, i’m glad you’re with me. I’d be stricken with simpatico tonia, if you got me nervous with the idea that you missed today’s show prosperity paradox silicon valley boasts seventy six thousand millionaires and billionaires and revolutionary innovation yet local non-profits struggled to meet demand and suffer inadequate reserves. Researchers alexa cortez culwell and heather macleod grant explained the disconnect and the lessons for your organization. Their report is tthe e-giving code on twenty steak two i’ve got a plan giving webinar coming up. We’re sponsored by pursuant full service fund-raising data driven and technology enabled, you’ll raise more money pursuant dot com and by we be spelling supercool spelling bee fundraisers, we b e spelling dot com. I want to welcome alexa and heather to the show, but they haven’t called into our line yet, so we’re waiting. Sam, of course, is struggling. You’re sending them texts to sam. Okay, sam is trying to get them on the line. Wth e-giving code is their report, and this is based on silicon valley. New philanthropy and the paradox in silicon valley, where there is enormous wealth and enormous innovation and research going on, and yet silicon valley non-profits r struggling to meet what are actually growing needs, we’re going to talk about thea, the shrinking middle class in the silicon valley they ladies define the silicon valley with in terms of two, there are two counties, and we’ll talk about those that they define as the silicon valley area specifically for their research and the report e-giving code. So it’s ah it’s frustrating to hear that with the enormous wealth and, you know, we’ve got statistics like, um, well, it’s, a super rich place the number of millionaires and billionaires is has grown incredibly in six years from, like two thousand eight to two thousand thirteen, individual giving rose incredibly from, like two billion dollars to have almost five billion dollars, one hundred fifty percent increase the number of millionaires and billionaires now at seventy six thousand. In these in these two counties santa clara and san mateo counties, so enormous wealth and considerable growth in giving but the non-profits in those two counties, our ah are struggling. I’ll tell you what, we’re going to go out for a break and we’re going, so i’m going to try i’m going to regroup and see what sam has done, and maybe i’ll call the women myself and see what’s up with how come they haven’t called in to our line yet so let’s go out early for the break, we’re gonna come back with e-giving code and hopefully the two co authors of the giving code stay with us, you’re tuned to non-profit radio tony martignetti also hosts a podcast for the chronicle of philanthropy fund-raising fundamentals is a quick ten minute burst of fund-raising insights published once a month. Tony’s guests are expert in crowdfunding, mobile giving event fund-raising direct mail and donor cultivation really all the fund-raising issues that make you wonder, am i doing this right? Is there a better way there is? Find the fund-raising fundamentals archive it. Tony martignetti dot com that’s marketmesuite n e t t i remember there’s a g before the end, thousands of listeners have subscribed on itunes. You can also learn maura, the chronicle website philanthropy dot com fund-raising fundamentals the better way welcome back to big non-profit ideas for the other ninety five percent. We’ve got one of our co authors, i think, it’s, alexa, alexa, is that you? Yeah, okay, alexa, thank you, alexa cortez culwell, cofounder of open impact and a longtime philanthropy advisor, speaker and facilitator for the past twenty five years, she’s built and managed foundations and philanthropic initiatives for successful entrepreneurs, including serving as ceo of the charles and helen schwab foundation. She’s at alexa culwell and open impact is at open impact dot hi. Oh, welcome, alexa. Thanks for having me. You’re welcome, pleasure and honor to be with. Thank you. Is there gonna be calling in shortly? I am sure will be joining us soon as you can. Okay. All right. Well, we’ll see her on the panel. We have the dashboard for the the conference line. Okay, so let’s, then let’s, get get started. I gave a little overviewing while in the first block while we were waiting, hoping you were going to call silicon valley is very rich. I went through some some statistics about the number of millionaires and billionaires there. Seventy six thousand. But talk about the growing need. I didn’t. I didn’t cover this part yet. The growing need that non-profits air facing. Yeah, so we uncovered that there’s, this incredible growing wealth in the region and with it is growing philanthropy. And then there’s what we call a prosperity paradox and that’s exactly right. So it’s, this enormous economy and all of these wealthy people, and yet thirty percent of our residents are replying on some form of public or private assistant. Yeah, that’s! Incredible! A third. A third of residents need some kind of public assistance. Nearly a third. Yes, and one and one in three, which is a third of our kids are going hungry, so they’re on free. And reduced lunch programs. They’re accessing food from the food bank and other things. Um, what is the non-profit community like there? In terms of numbers and size? I know it’s ten, small and struggling, but give us more color than just that. Well, like the rest of the united states, the majority of our non-profits their small under a million dollars in revenue. And since in the last ten years, we’ve actually seen a lot of growth in the number of our non-profits almost thirty, one hundred non-profits in the region. And so and so we have a lot of non-profits a lot of small inns, and we also have non-profits that are struggling to get by. So they’re being displaced by this economy. They’re under siege and what’s. Interesting is not only are they kind of being displaced, they can’t afford actually operate in the region. The demand for their services is at an all time high, so people are on wait lists there being ah, dahna, you know? They’re just asking for help that these non-profits can’t keep up with that kind of thie irony of all of this and as a result, our non-profits they’re struggling, so they actually have deficit that are above the national average for organizations there and also being displaced from office base because it’s, the silicon valley on and i mentioned earlier san matteo in santa clara, county’s that’s how you define silicon valley office space is at a premium, so that’s costing them and that’s hurting them. Um, i have some of the stats from your executive summary eighty percent of non-profits reporting increasing demand for services over the past five years, seventy four percent don’t have access to high net worth donordigital works significantly hindering their outreach. We’re going to talk about that. The gap there, fifty one percent say they will not be able to meet demand for services this year and and on and on, you’ve got very nice multicolored summary there on page three of the executive summary, but of lots of lots of pretty colors in those in those stats, i like the electric i appreciate the color, thank you and think you’re actually reading the report and i do what you think of earth people to dig into our data. It’s awesome and there’s a lot of it. You think i don’t prepare for the show or what? What do you think? You’re very well off the cuff. Well, we haven’t. We haven’t spent the hour together yet. We’ll see what happens in one one fifty nine eastern rolls around. See if you still say that, but yeah, now the summary, i have toe critique a little bit because it’s my nature, i think the executive summary is a little on the long side. Sixteen page. I mean, i’m executive summary. I’m looking for like, two paragraphs. Well, then i won’t torture you with the full report, but it’s seventy nine pages of even more data graphics and deeper insight, and i really would urge people teo get into the executive summary and if and if they’re interested to really, really dig deeper into some of the analysis and implications for their work. Well, it doesn’t mean sixteen pages it’s a really tough topic and there’s there’s just i think we’re going to need to really kind of carefully consider these issues that were going to actually want to solve them. Well, i’m well acquainted with take point taken. Okay, now, but i’m well acquainted with the full report. I’ve read large pieces of it. I do not read all sixty nine pages, but okay, you know, executive. I mean, i’m a busy person. I don’t know. I’m sure you’re busy, but i’m busier. I need i need to paragraph executive summary. So, please, maybe you need a summary of the summary. Can you do that? Yeah, well, well, i think that somewhere you were pretty forward if we want to give it to people here and then they don’t even have to read the report. They can hear your interview. Go. Okay. Okay. I got it. Like i say, executive summary is the situation sucks. It’s bad and yeah, and we can do some things to help it. Is that teo teo to kurt? Well, i think i think that’s the set up to this report the set up is we have growing wealth and growing philanthropy in silicon valley. We haven’t even dug into that. So it ends up that all these wealthy people in silicon valley are actually giving a lot of money away where the disconnect is is that money is not making its way to a local causes an issue and the community based organizations, right, that kind of are the champions of those issues and those residents who need help and that’s the case in many communities, right? I think this is a trend we’re seeing across the country, you’re we’re seeing increased income disparity, we’re seeing growing need by the by the residents who are the most left out, and then a non-profit community that’s under siege. And so we’re interested. And yet we see this growing wealth and we think, well, are they giving money away? And if so, why isn’t it making its way to me? Where is this money going? And so in silicon valley, we track all of these statistics. We tracked individual giving the growth in private foundations the phenomenon called donor advised funds and also corporate giving. And there was mortgaging everywhere that was kind of the astonishing fact. But the majority of it does not go to our local organizations and heather’s now on the line, and can be brought into the call to add into this dialogue. Okay, sam, you’re ready way. Have heather. Okay, wonderful. Let me introduce her. Heather macleod grant is the other co founder of open impact she’s, a social entrepreneur, author and consultant with twenty five years of experience and social change. Both these women have twenty five years. Everybody’s got twenty five years today except neil fight host with twenty years she is. She is co author of forces for good six practices of high impact non-profits, which was named a top ten book buy of the year by the economist she’s at hmc grant and again open impact is that ah, open impact, dot io and also at open impact team. Okay, heather, welcome. Welcome to the show. Hi, tony. Thank you. And i apologize for the technical difficulties. That’s. Okay. Well, berate you later, it’s not, but not on the air. It’s ok, um okay. So alexa and i have been ah, diving in and let’s bring you in where? I guess we were really at the point where we’re saying that essentially the need is scaling much faster than the support is growing locally. Locally, that’s the point that election was just making heather let’s bring it in. Let’s bring you in with an explanation of what the giving code is, yeah, so the giving code, we talk about it in the report, and we talk about it being this kind of implicit approach philanthropy that many of these new donors have that is very much it’s, very much informed by their business background and experience, and they’re they’re they’re sort of expertise and technical companies, so for example, they’re very focused on impact, they’re very driven by metrics they’d like to measure outcome, not surprisingly, their innovative and disruptive, so they really like to think about, you know, how they can hack systems and change things like education or health care. They’re very connected and networked with their peers again. Many of these new donors are in their thirties and forties, they’ve grown up in the era of social media, they like to do things with their peers, so we see a rise and e-giving search kinds of group e-giving activities and you know, they’re they’re really again. Their approach to philanthropy is very much informed by their business background and experience, and so sometimes, unfortunately there’s a disconnect between this business like approach to philanthropy and the approach that community based organizations take yeah. And in fact, well, first, i want to make something explicit when we say they and they turned the donors were talking about newly wealthy philanthropist knew ah, high net worth ultra high net worth millionaires, billionaires in the inn, that to county area the way you, the two of you to find silicon valley there’s also ah, skepticism of non-profits heather, yes, absolutely. They look out across the landscape and they see this fragmentation among non-profit organizations, and they really think that non-profits aren’t being businesslike enough in their approach. So again, it doesn’t mean non-profits they’re wrong, they’re just not meeting the expectations of some of these new donors. Um, and and they do tend to be skeptical non-profits don’t inherently have scale. Almost eighty percent of them are operating on less than a million dollars in budget. That’s true for these two counties and it’s true for the rest of america as well. So these are the guys we’re used to running multibillion dollar companies, and they see these small, tiny non-profits and there’s just a massive disconnect you mentioned the growth of unicorns in silicon valley, which is the unicorn is a greater than one billion dollar asset value pre ipo and how the number has grown to twenty something right? I think in the region, yeah, there’s twenty one unicorn in these two counties now, i’m sure there’s i think there’s something like forty six forty seven nationally, but you know more than our almost half of the unicorns that we see now are here in silicon valley, and you’re correct those that’s kind of the local jargon or lingo for start up companies that have a billion dollars evaluation pre-tax haven’t, in two thousand eleven, there were three unicorns and twenty sixteen there were twenty one so again, just enormous growth in wealth and scaling. You refer to a bigger, better, faster, essentially, too, to summarize what the newly wealthy philanthropy philanthropists think and how they think, and then there’s the skepticism of non-profits of it, i mean, you don’t you don’t use this word, but would you say it? It suggests in a certain arrogance among these, these folks? Well, you know, some would say someone some would use that word. We wait, we don’t say it’s arrogance, i think it’s perhaps more ignorance or not understanding how. Social change works, but, you know, i do think some of these donors can’t come across that way in their approach to social change, they think, well, i built this billion dollars, you know, app that scaled in three years, i’m going to go fix public education, and they don’t really have an understanding of how complex social systems are, um, and again there really obsessed with scale and, yes, moving really fast and unfortunately, social change is an entirely different beast than building an internet company, right? It’s complicated and involved multiple stakeholders, you often have to find ways to work with a partner with government latto leverage the significant resources that are already in government, you’ve gotta engage communities, and you’re really trying to solve market dafs where they’re actually isn’t a paying customer sometimes, right? It’s, you know, solving homelessness is not something that you could do with the technical app, so so the complexity of these problems, i think sometimes pla mixes these new donors, and they do come in with this mindset of, you know, i felt this huge company, how hard can it be? And i think what we’ve seen many of them overtime. Bill gates, mark zuckerberg and others have learned that it’s actually really, really hard the’s air really big, intractable problems, and it takes time and it takes patience and it takes resources and it takes working in very different ways than just building an internet company. You and alexa are very nonjudgmental in the report, but it’s well, actually, tony, i’m going to jump it. I’m going to jump in here. It’s really not about judgmental or non judgmental, we find that not really going to help us get to a solution, and we call it the empathy gap because when people start relegating each other teo arrogant one percenters or social do getters, we find the conversation just stops and everyone walks away frustrated why heather and i wanted to write this report is we wanted to really probono deeply like, how could we get these two sides that are so disconnected? Who speaks such different languages who have such different mindsets and frameworks? How could we leveraged their strength to come together to really solve community problems? And if we stop at just going okay there too arrogant and you’re too much of a do better we don’t. Get to the solution, and the reason we wrote the report is we wanted to get past kind of those stereotypes and begin to bridge the empathy gap that is so wide right now. By the way, alexa, our listeners will know that earlier, when i said when i said i may be busy, but you’re busier. I mean, what did i say? I may be busy, you know, i said, you may be busy, but i’m busier. That’s what i said, listeners know that i was joking, but you might have rolled your eyes and said, who is this clown? But, you know, now i’m andi, i’m teo for twenty minutes, and yeah, he’s only takes about thirty seconds for people to recognize my i mean, i’m judgmental about myself, arrogant, certainly big doses of scare of sarcasm, so all right, we’re all busy, but heather, that was in the context of i was saying earlier, when i see executive summer, expect like, two paragraphs, not sixteen pages, and then the sixty nine full page, sixty nine page full report that i had to reed, you know, so i was that i was asking alexis to scale it down. But i understand it’s, a complex problem, and all right, but i expect to pay an executive summary. I was scrolling through the pdf. Is that what this is a summer? You need a. You need a summary of the summary? Okay, wait, we got a little ambitious. My last project was a book, and so i let you keep joking that i was trying to turn this into a book. So all right, well, you’re in the right trends in terms of least my attention deficit. So you know the next thing you could do instead of a report, maybe, just to a paragraph. Great. Well, we could try. I suppose you could sum it up. You could probably get into one hundred forty characters if you tried really hard, but yeah, basically, it sucks. I had said that earlier. All right, let’s, get to the to the challenges that you identify between that are preventing the two communities the newly wealthy philanthropists and the community based on non-profit organizations from coming together. Alexis let’s, go back to you. You basically the first one is they don’t they don’t know each other that’s how i know that that’s how i put i’m using my words you have different, you know, you live in silicon valley, it’s a pretty compact in place. We’re not talking about, uh, this enormous area, these air to counties and people live pretty close together. And some of our poorest neighborhoods are right next door. Some some of our wealthiest neighborhoods. And yet these two groups of people the ones who have all this capital and are giving it away, and the ones who desperately needed in order to help are most needy residents. They just are worlds apart. They have completely different networks and ways of thinking about place. And at the heart of it, it really is about community in place, so the donors are often globally minded. They’re working or running global companies, they’re traveling all over the world for those companies, and they will have homes in different places and relate and identify with different places as their home in community, whereas the nonprofit and community based organizations that we work with r really thinking about places, the place where we live and raise our families and our kids go to school where we go to work every day, and this is our community, and it deserves our attention, and it deserves to be healthy and vibrant for the sake of all of us. And so the social networks just don’t meet as often as you might think they’re like worlds apart, even though they may only be blocks apart. Yeah, you call it the more articulate that you called the knowledge and information gap. I was just saying they don’t know each other. Let’s let zach with you for another one. What you call the social network and experience gap. I just say they don’t have ways to get to know each other that’s, right? They don’t, they don’t, they’re not at the same cocktail parties, they’re not vacationing in the same places. They’re not even going to the same grocery stores, and even though they live sometimes within a mile of each other. That’s, right, it’s just a very stark contrast and kind of an odd conundrum, but it makes sense, right? I mean, there’s, a sense of place in community is different, and their social networks are really different. Let’s jump over to you and and continue this thread on the gaps that what you call the mindset and language gap, i just say it, they look at the world differently. Yeah, that’s, that’s going back a little bit of what i was saying before about this language of business and metrics and scale and that’s a language, you know that these tech entrepreneurs have come up and many of them have had almost no exposure to social problems or public policy or government or social work. And on the other side you have non-profit leaders, many of whom came out of programs for public policy or social work and who really speak a much more moral language, a language of ethics and social justice and taking care of the least well off. And so, again, we find that there is kind of a disconnect in terms of the language and frame works in the mental models, if you will, that the philanthropist use versus the language and framework and mental models that community based organizations in particular use and later on that that many of these community based organizations were serving low income population, sometimes there’s literally a real language kept sometimes these populations are speaking spanish or their low income asian communities, so you’ve got lots of different layers of disconnect, and and that leads to what we ultimately say is an empathy gap and that’s why we don’t like to use words like arrogant, we don’t wanna point fingers because we actually feel like that’s already happening too much it’s too easy to write off these business people is being arrogant and greedy and that’s actually oversimplifying and it’s not also taking their good intentions into consideration. We really think we need to get beyond the empathy gap, have each side try and understand the other in the world that the other is living in and that that’s what’s going. To ultimately help bridge the gap. Okay, perfect, ladies, we’re going to take a break for a little while. Your i have to do a little business for our sponsors, and of course we’re going to continue our conversation for the remainder of the hour. And now that we’ve talked about what creates the what the gaps are, you know we’ll spend the balance of time talking about bridging those gaps on the positive side and, uh, encourage you again to have ah, two paragraph summary of your executive summary, so stay with us. Ladies duvette there’s more of this prosperity paradox coming up first, i got a chat with you about pursuing because they have a new info graphic grow your monthly e-giving your problem, you need to raise more money solution in part monthly giving and that’s what the infographic is about. Ah, it helps you, whether you’re creating a program or trying to convince your board or your c e o of the value of a sustainers program or you need to grow your existing program and your fund-raising mix the infographic has got strategies to launch and grow tells you how long you can expect sustainers to stay with you and gives you tips for attracting new donors and there’s more to it as well. It’s all in mourning for graphic. Amazing, very, very highly concentrated, dense with value. And it is at pursuant dot com quick resource is my voice just crack get resource is fourteen years old quick resource is and then info graphics at pursuing dot com we be spelling spelling bees for fund-raising you need a fun millennial event, check out the video it’s from one night of spelling and stand up comedy music great fun! The video is that we be ee spelling dot com now for tony’s take two. I am doing a free webinar coming up later this month. It’s jump start your planned e-giving how to get started. Who the best prospects are were the types of gif ts that you can start promoting right away right away easily dispel yourself of the myth that plant e-giving is only for larger organizations and only for major donors. Both of those are incorrect. Both fallacies. I’m gonna explain plan giving simply ah, not using my legal background. I can explain it to you so that you will understand it. And understand how to get started. You know my focus is small and midsize shops that’s who the webinars for it’s on thursday, march sixteenth two o’clock eastern affiliate listeners there is time for you to be with me. I know sometimes the timing doesn’t work for you by the time i and i put something in the show and then by the time you’re your station airs, it may be too late. This one the timing is perfect for you it’s march sixteenth there’s still time you register at tony dot m a slash jump start your pg the link is also on my video, which explains a little more about the webinar and that video with the registration link is at tony martignetti dot com. And that is tony’s take two and i feel like doing live listen love podcast pleasantries and affiliate affections a little differently today we have listeners all over the country all over the world, but today i will instead of identifying city and state and sending love and pleasantries and affections, we’re all one big non-profit radio, family flock, not a church. I almost said church, not a church, but we’re one family. Whether you’re listening live right now or among our twelve thousand podcast listeners or among our am and fm affiliate station listeners, today, we’re one big non-profit radio family. So the love and the pleasantries and the affections go out irrespective of what your method of listening is. I’m very glad you’re with us. That is tony steak, too, all right, let’s, bring the ladies back, and, uh, you know, you, uh, you have something interesting. Anybody can comment on this, the you devote a page in the full report to the good wani brothers. They sold their company to netscape in nineteen ninety eight, and in two thousand three, the co founded a nonprofit to india community center. And basically, what i come away from that page is they recognize the brothers, recognized that this is hard work, having a non-profit. Yeah, i love that story in our report. And tony, it does prove that you’re you’re a much more diligent reader than you let on, because that’s all the way on page fifty for the report, but there was a couple of reasons we wanted to feature their story, their immigrant, uh, americans who came from india, they started a really successful company, that’s contributed to the economy in the valley, and then they decided to give back by starting a nonprofit that would serve the indian diaspora in silicon valley. That would be a gathering place for indians to come and to share culture and food and language and ping pong, which they love. And so it’s an enormous community center not unlike the jewish community center model we often see in the u s and they started the very first one and silicon valley, and we talk to them because we wanted to hear about there journey, starting a community based organization and also about how philanthropy work in other cultures and communities. And, you know, philanthropy is a rather novel thing to america, it’s part of our culture and its distinct distinct from other cultures and other parts of the world, and so they just shared how challenging it’s been to raise money from other indian americans around this really compelling non-profit that they’re building because they prioritize helping their families back at home. E-giving toe heart hyre roo i causes in india, where you can literally save someone play for set their whole life on a new trajectory by sending them to school for hundreds of dollars a year on get this incredible return. And so they’ve been on a journey to figure out how to build a sustainable business model for this very vibrant community center that they started some time ago. That was alexa, right? Or is that just alexis being? Yes, i’m a little disadvantaged cause you sound a little a little like, but i figured, yeah, that xero voices don’t don’t apologize, and i want to remind listeners that alexa cortez culwell and heather macleod grant are the co authors of this the of the study i’m called e-giving code and also co founders of open impact ladies, how come open impact your your your your consultancy around social impact and how come you’re dot i owe you? Didn’t you didn’t get in early enough to get dot com or dot or gore dot net, will you not dot org’s? But how come dot i owe on your for your very trendy, trendy and hip trendy in him, it is kind of the forefront of of the new. Yeah, but, you know, a lot of people buy up lots of names with dot org’s dot com, even though they’re not using them that we just went. Dad, i oh, okay. It’s. Another word you came? Yeah. It’s. Cool. Because why? Oh, i iove well, well, because that io is also open impact initial backwards, right? So it’s ah, it’s ah it’s a palindrome that’s, right? Oh, i i don’t. I don’t. I don’t know what kind of some kind. Okay, well, yeah, if you take just the initials but it’s not it’s, not a lie. Dot io it’s open impact, your honor name. We will tell you what, why open impact is such an important name and part of the value of the work we do, which is we think that non-profit leaders today are constantly balancing the tension of staying open and adapting to the complexity that they’re dealing with all around them, the external landscape is so volatile, but they’re also being required to really measure their impact and report that in clear terms. So we are really committed, teo writing and speaking and publishing about that. And we help our clients with that. Yeah. You have a very good video at open impact dot io who’s who’s fireplaces that that you’re in front of that’s. A beautiful fireplace. Is that one of your homes? No. That’s, a dear colleague of our living room. Okay, i kind of want to see the kitchen. I was hoping the second half of the video was gonna move into the kitchen because the fireplace is beautiful. Fabulous. Yeah. Labbate all right, maybe the next video, he’ll let you use the kitchen. Okay, let’s. Go back to the substance, though, so let’s, start bridging the gaps. I don’t know who want to take the first way, but, uh, you do something. You suggest something called connect to build empathy. We want to talk about that. Yeah, this is heather happy too. I’m happy to jump in on that. So so i do think bridging these gaps really starts by finding ways to bring these donors and these non-profits together and there’s a couple of examples in our community of organizations that are doing that we’ve also seen traditional intermediaries. Their role has very much changed in this landscape. I don’t think alexa touched on this before it joins the call, but just in brief our local united way has emerged, so we now have a bay area why united way that serving like twelve different counties and our community foundation is very nationally and globally focused on working with many of these donors on all levels of e-giving but not just community e-giving so what we’re finding is, as these intermediaries have kind of changed their role in the ecosystem, new intermediaries, air having to step in until some of these gaps. One example is to silicon valley social ventures, which was actually founded sixteen, seventeen years ago by laura, ari, aga and reasons and it’s e-giving circle, where donors actually come together, meet local non-profits vet them, they pool their money and their resource is so you don’t have to be a billionaire. You don’t even have to be a millionaire to join you can contribute six or seven thousand dollars pool your money with other donors and then vet local non-profits and find knows that you think are, you know, the most interesting, having significant impacts have leadership that you like and basically make an investment in that organization and what’s really great about this model is many of the partners in this e-giving circle actually take board seats or become mentors to the non-profit so this is, you know, one example, but we think it’s the perfect example of what we need a lot more with these opportunities for these donors to actually connect with these leaders, mentor and coach them start having a conversation where the non-profit leaders can teach the business with yours about social change and why it’s so complex and why it sometimes really hard to measure their impact, and at the same time, the business leaders could bring their technical and their marketing and their strategy skills, cities non-profit organizations, and really helps them be even more effective. So it’s again connection and learning together, we find it a very effective way to start. Bridget yeah, engagement if i put a five letter word to it, genuine up boat way just lose alexa, i don’t know. Heather used to with us, no, i mean, i’m here, i’m good, we’re here. Oh, you are okay. Whoever was whoever was listening on the call, the third party that wasn’t invite the third party that wasn’t invited, just dropped off. All right, they could have just listened online. It’s so much easier than calling the number. Um, yeah, and i think, you know, this is the section bridging the gaps that has the real value, i think, for our listeners, because these are things that non-profits can do in their own community. You know, there are lessons. That’s, why i wanted to have this conversation with ladies, because there are lessons for the entire nation’s non-profit community based on your findings. Just in two counties in california. What do we got? Well, this’s, alexa, you’re exactly right. I mean, the report is received a lot of national attention because issues of income disparity, issues of the wealthy and philanthropy, and the very unhealthy state of many of our local community based non-profits is something that is concerning in many, many cities, in urban areas and even rural areas in the country. So i do think we’ve been surprised at how much has been resonating, because on one hand, silicon valley is so unique. But, on the other hand, is part of the really odd story that we’re also so much like other places. Yeah, well, that’s, your it’s, a well written report, and that it comes out the value for the community nationwide comes out if i can call that a community. Oh, and all that national media attention has brought you to this moment non-profit radio. You see that, right? Yeah, and we’re grateful to you see that? Yeah, okay, what, i don’t know, whatever the national media you’re on, but it brought you two brought you here. So there’s, roger’s stepping stones, all right, let’s, let’s, let’s, continue to bridge the gap. Thank you for agreeing. You have no choice. I understand that let’s, continue bridging the gaps. Who wants to talk about creating educational opportunities in your your step two? Well, this is heather. I can jump in again. I mean, so two thoughts first on the like this resonates across the country mean, one thing we are doing, you know, we start to see up solutions in the report, but we’re actually starting teo focus even more on what would it take to implement execute some of the solutions in silicon valley? Because we actually do think if we can start to solve some of these divides here that’s a model that other communities might want to emulate, but going back to what you said, tony, i think it does come down to engagement, and one thing we’re realizing is that that both sides need to be educated that can happen through connection and experience are learning the both sides really need to build their capacity to engage with the other. So in this case, many community based on profits, they’re so resource strapped, they’re so focused on being head down, trying to serve the communities there, serving that often they’re not actually doing a good enough job of creating real donor engagement opportunities. Finding ways to connect into these networks happened to these networks. I get it that takes time and money, and when you’re serving the poor, the temptation is to spend all your resources on your program. But then you have nothing left to build your organization and build your outreach and build the donor engagement opportunities, or even to market and get your information out of these donors even know that you exist. So we think there’s education opportunities on both sides the opportunity to build the capacity of non-profits to be more sophisticated and how they reach out and engage these donors and how they have theories of change and strategies and how they measure their impact to the extent that they can and how they can tell stories used metrics, not just wonderful anecdotes, i think again playing both the head and the heart, same time donors need education to we were astonished as we talk to many this philantech how long it takes him to get up the warning firm, sometimes five or ten years, and there are some programs out there, the philanthropy workshopping one there are some other programs out there that focus really on donor education, but we need many, many, many more programs like this because there are many more millionaires and billionaires who are coming online with their philanthropy and our country stuck. They don’t even know how to get started, so so education can also be a stepping on dh, creating things. Circles are accessible and communities all over the country, and the data is showing that when a donor joins e-giving circle, they give more and they give more faster, they accelerate, they’re giving their more satisfied there, more confident, so really simple things. Non-profits khun dio is help think about curating e-giving circles or joining with partners, and if a donor is listening to the podcast, you know, joining a e-giving circle is just a a fabulous way to accelerate your impact. Also also just creating or seeking out volunteer opportunities, and i have to stop you. Alexa, hold on, we’ll take our last break. Hold that thought, please, andi will continue, okay, hang on. 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You can join the conversation on twitter using hashtag non-profit radio twitter is an easy way to reach tony he’s at tony martignetti narasimhan t i g e n e t t i remember there’s a g before the end he hosts a podcast for the chronicle of philanthropy fund-raising fundamentals is a short monthly show devoted to getting over your fund-raising hartals just like non-profit radio, toni talks to leading thinkers, experts and cool people with great ideas. As one fan said, tony picks their brains and i don’t have to leave my office fund-raising fundamentals was recently dubbed the most helpful non-profit podcast you have ever heard, you can also join the conversation on facebook, where you can ask questions before or after the show. The guests were there, too. Get insider show alerts by email, tony tells you who’s on each week and always includes link so that you can contact guess directly. To sign up, visit the facebook page for tony martignetti dot com. Hi, this is claire meyerhoff from the plan giving agency. If you have big dreams but a small budget, you have a home at tony martignetti non-profit radio. Oppcoll welcome back to big non-profit ideas for the other ninety five percent. I’m with alexa and heather, and they are co authors of the giving code that that is they’re reporting you confined their full report and the lengthy executive summary there’s my judgment, i’m not i’m not no, i am not nonjudgmental judgment confined the full report in all its robustness, both forms at open impact dot i oh, which is actually a very pretty sight, ladies. All right? And i do love the video. That’s a very good video of the two of you. Um okay, alexis, i think you had a thought that i cut off you wantto ex charity? Well, i was just saying that, you know, a creative thing for a non-profit to do would be teo curate e-giving circle on the cause that their organization is all about and to try to get some donors and learn about the issue and to learn how to give and donors likewise confined giving circles there’s lots of those in their communities. It’s an easy way. Easy, inaccessible way to plug in non-profits i think there’s lots of capacity building opportunities for non-profits and they really need to think strategically about building their capacity to pitch their organization proactively. So what a lot of donors told us is there often coaching non-profits on what they need rather than having a non-profit pitch some kind of anticipating what they’re going to need, and i think it’s pretty easy to anticipate what the donor’s need they want, like, a really clear narrative about what the organization does, and they want really clear numbers, they want to know very basic things in a very clear way, like, how many people do you serve? How deeply do you serve them? What’s the evidence you have that something is changing in their lives for the better, and how much does it cost to do that service and why? And non-profits really struggled to just step up and and frame those issues in a non apologetic way, never heather and i are out talking non-profits they they really struggled to just kind of state and the state it clearly, and so the best advice we can give in terms of educating yourself is to go out and really learn how to put together follow-up plan that you can pitch to donors that really anticipate their objections. Like, you know, overhead is a big objection donors donors often will express. And the leader who just, like gets ahead of that. You know, who really explains what the organization does and why how they do it so efficiently is really gonna win with owners versus one that’s kind of caught on their back foot trying to answer that question. Yeah. You refer to the overhead myth, and i thought we were i thought we were past this. I had back when this happened. When? When? Guidestar and charity navigator and better business bureau wise giving alliance. I created this problem. I had the three ceos of those organizations on and we talked about thea overhead myth letter that they all signed for the country. And this was back, like, three years ago. I think it was twenty thirteen. Are we not past the overhead myth among, well, let’s talk about the court you’re dealing with among newly wealthy philanthropists. Are they not overhead that? Are they not past that overhead myth problem? Well, tony, this is heather and it’s. Interesting. Because my book forces for good came out almost ten years ago and we started to take on the overhead myth in our book back then, and i think, unfortunately, even though those of us who are kind of insiders in the nonprofit sector feel like, you know, haven’t we gotten past that? Haven’t we said it’s really about impact and outcomes, not the inputs that it takes you to get to that impact? Unfortunately, i think some of these new donors coming online are not yet with the program, and these kinds of, you know, stereotypes and overly simplistic ways of looking at measurement, unfortunately continue to persist. But as alexis said, we’ve also seen amazing examples of community based organizations taking that argument and just flipping it on its head. So one great example. Peter forton bob, who runs the local boys and girls club in our community, serving literally thousands of low income students and kids and partnering with schools. He’s really been a subtle intra printer, and within the boys and girls club network, he’s really innovated around their core models and, you know, i went to a fundraiser they had two weeks ago, and not only did he have the ceo of youtube, susan would just be was a judge. On the panel, he had the ceo of lincoln in the audience, and he had cheryl sandberg is opener, the ceo of facebook. And when he got up to give the pitch to that audience, peter, by the way, has a harvard mba. It worked in tech. Former mackenzie really smart guys made some money now dedicated his life to service and running this grassroots community organization. So he knows how to talk to these donors. And he stood up and he made a pitch that you would hear kind of on sandhill road and the tony kind of blue chip venture capitalist offices. He stood up and he said, guys, this is not charity. This is an investment. This is an investment in the youth in our community. This is an investment and where we live, this is an investment in our future workforce. And by the way, we hyre top talent. We have a great organization, we have state of the art technology. We don’t work on twenty year old computers and guess what? That costs money. But if you invest in us here’s the return, you’re getting it on that investment and he walked through the numbers. Of the impact that they’re having, and i’ll tell you what, they raised a million dollars in one night in that room, unbelievable and that’s an example of what we don’t see enough non-profit leaders doing is getting out ahead of the argument, anticipating to push back and saying, yeah, you know, you want me to run a small, shabby organization that’s never going to scale or have impact? Fine, then we can talk about overhead, but if you really want me to have impact, you’ve got to pay for the things that it takes. So we would just love to see more non-profits in this country, learn from these examples and figure out how to do this and get on the front foot rather than being on the back foot. Excellent, excellent. Okay, we have we have just about, like three minutes left together, ladies. So and i want to get to the rest of the your specific methods of bridging the gap. Let’s just stay with you, heather, and talk about just in like a minute or so. Increasing coordination and collaboration among non-profits on dh and then also among i know that’s hard to do in a minute, but then also among the let’s, just talk about it for the non-profit just on the collaboration on the non-profit side. Okay? Please. Yeah, so this is all i’ll be quick, and then i’m sure alexis may have something to add as well, but, you know, i’ve done a lot of work over the last five, seven years of my career working on networks and collective impact, and we actually think this approach holds great promise when it’s done the right way because you have hundreds, if not thousands of tiny community based organizations, the answer isn’t necessarily to have them all merge because that’s not practical, but if you can get them more coordinated and aligned around the goals that they’re trained, the problems we’re trying to solve and setting shared goals and setting shared measurement and collaborating rather than competing against each other, you can actually have much more impact cubine also attract more resource is because donors look out and they say, oh, finally, all these small little guys, they’re working together on solving the problem that’s what i care about, i want to put my money into that so there’s a couple examples in our own backyard one called the big lift, which is an early literacy program for early childhood development, and they’re working with several hundred non-profits they’re working with school district, they’re working with the county government, and they have managed to create this kind of collective impact network. So we think again, we need to see more of this in our sector, we need to see more non-profits kind of stepping up and really getting aligned with other non-profits and coordinating rather than everybody kind of putting their head down and doing all right, you have, and then you have a fourth, which is building capacity and addressing costs, and we’ve pretty much covered that not under that rubric. We’ve talked about that so let’s, let’s wrap up with, we just have a minute left celebrating success. Please, alexa well, so whenever we see a philanthropist and a non-profit doing this the right way, we need teo tell their story. And in silicon valley, we actually have some really great stories of where this is working. Well, so it’s not all bad news. We have some extraordinary philanthropist who are commited locally and telling their stories why they’re committed locally how they give their money to smaller community based non-profits how they partner with them is just critical to raising awareness that it can be a great and satisfying thing to do is a donor and and go beyond just e-giving safe bets to your alma mater or to the things that are familiar to you. Stepping out of your comfort zone has huge rewards. Andi, start funding these organizations and we have to leave it there. Alexa cortez culwell she’s at alexa culwell heather macleod grant she is at hmc grant. You’ll find the report and the summary at open impact dot io ladies, thank you very much next week. Thank you so much for being a call. Alright next week doing good, better effective altruism for individuals with takeaways for non-profits of course, if you missed any part of today’s show, i beseech you, find it on tony martignetti dot com. 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When’s the best time to post on facebook facebook’s andrew noise nose at traffic is at an all time hyre on nine a m or eight pm so that’s, when you should be posting your most meaningful post here’s aria finger ceo of do something dot or ge young people are not going to be involved in social change if it’s boring and they don’t see the impact of what they’re doing. So you got to make it fun and applicable to these young people look so otherwise a fifteen and sixteen year old they have better things to do if they have xbox, they have tv, they have their cell phones me dar is the founder of idealised took two or three years for foundation staff latto deigned to add an email address their card. It was like it was phone. This email thing is fired-up that’s why should i give it away? Charles best founded donors choose dot or ge somehow they’ve gotten in touch kind of off line as it were and and no two exchanges of brownies and visits and physical gift. 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