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Nonprofit Radio for March 18, 2024: Artificial Intelligence For Nonprofits, Redux

 

Justin Spelhaug, Amy Sample Ward, & Tristan Penn: Artificial Intelligence For Nonprofits, Redux

A second savvy panel takes on the impact, leadership demands, promises, responsibilities, and future of AI across the nonprofit community. We convened a panel in June last year. But this is an enormous shift in nonprofit workplaces that deserves another look. This panel is Justin Spelhaug, from Technology for Social Impact at Microsoft, and Amy Sample Ward and Tristan Penn from NTEN.

 

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And welcome to Tony Martignetti nonprofit radio. Big nonprofit ideas for the other 95%. I’m your aptly named host and the pod father of your favorite abdominal podcast. Oh, I’m glad you’re with us. I’d be forced to endure the pain of chronic inflammatory demyelinating, poly reticular neuropathy. If you attacked me with the idea that you missed this week’s show, that one is so good. It deserves two weeks and plus I spent a week practicing it. So it lives on for one more week. Here’s our associate producer to introduce this week’s show. Hey, Tony, I’m on it. It’s Artificial Intelligence for nonprofits. Redux, a second savvy panel takes on the impact, leadership demands, promises responsibilities and future of A I across the nonprofit community. We convened a panel in June last year, but this is an enormous shift in nonprofit workplaces that deserves another look. This panel is Justin Spell Haug from technology for social impact at Microsoft and Amy Sample Ward and Tristan Penn from N 10 on Tony’s take two. Thank you. We’re sponsored by donor box, outdated donation forms blocking your support of generosity. Donor box fast, flexible and friendly fundraising forms for your nonprofit donor box.org and by virtuous, virtuous gives you the nonprofit CRM fundraising volunteer and marketing tools. You need to create more responsive donor experiences and grow. Giving. Virtuous.org. Here is Artificial Intelligence for nonprofits redux. We’re talking this week about artificial intelligence. Again, it’s an important topic. Uh We did this with a panel in June last year today, a different distinguished panel shares their thoughts on this transformative technology. It’s timely, It’s got a lot of promise and a lot of risks. It’s moving fast. Those are the reasons why nonprofit radio is devoting multiple episodes to it. What are the promises and the responsibilities? What’s the role of nonprofit leadership about government? What are the equity concerns? The biases? What about access to this intelligence? What are the preconditions for successful integration at your nonprofit? What’s the future of artificial intelligence? Who to share their thinking? Are Justin Spell Hog recently promoted Justin Spell Haug. He is corporate vice president and global head of technology for Social Impact at Microsoft. You’ll find Justin on linkedin. Justin. Welcome to nonprofit radio. Congratulations on your promotion from vice president to corporate vice president at the uh enormous company Microsoft. It’s great to be here with the pod father. It’s a new name. So I’m proud to, proud to be here and look forward to the conversation. All right. Well, I’m glad it’s the first time you’ve heard the pod father. It’s, there’s on, there can be only one really there, there ought to be only one. So I’m glad it’s the first time. Um And I see, you know, global head. I’m sorry, you’re a little bit limited. You’re not working in the stratosphere, the ionosphere, the troposphere, you’re strictly limited to the globe. I’m sorry, we all have our constraints. We are working on Mars and the moon uh soon, but we gotta get a broader population of nonprofits there. All right. So we, we’re limited to the globe. I’m sorry for you, Amy Stample Ward. We know them. They are nonprofit radio’s technology contributor and the CEO of N 10. They’re at Amy Sample ward.org and at Amy RS Ward, Amy, it’s great to see you. Welcome back. Of course. Thanks. I know there have been a number of different conversations about A I that you’ve had on nonprofit radio. Um I’ve listened to them, I haven’t been in all of them. They’ve been great and, you know, we talked a little bit about a IJ and I, you know, when we started off with some of what’s gonna be big topics in the sector for 2024. So excited to be in a conversation kind of dedicated to that. I’m glad you are and Tristan Penn, welcoming back Tristan, he is equity and accountability director at N 10 as a Black and NAVAJO professional. He’s served on previous organizations, equity teams and been a facilitator for de I rooted in racial equity. Tristan is on linkedin, Tristan. Welcome back. Awesome. So happy to be here. Um Thank you for having me, excited to have this conversation with um Amy, who I work very closely with and um it’s really good to see you too and um also excited to have this conversation with Justin to see um you know what we can unearth. Yes, we’re, we’re representing the big tech perspective. Um Amy, since you are our tech contributor, uh we’re gonna start off, you know, just big picture. What are your, what are your thinking? What is your thinking? What are your concerns? Big picture stuff. Yeah. Well, I’m glad that we’ve scheduled five hours for this interview. I will be taking the first four. Thank you so much. I have many thoughts. Uh many concerns, many, uh you know, I think there’s so there’s just a lot to get into, I think some top level, you know, bites to put at the beginning here are, there’s a lot of hype and as with anything that falls into the hype machine, I think nonprofits do not need to fall, you know, victim to like, oh my gosh, I read this one article so I have to do the thing, right? Um There’s, there’s time A I is not done, the world is now now, not already over and everything’s predetermined, right? So, um you, you’ve seen the article that was like a I will end humanity? Ok. Ok. Here we are let’s calm down and talk about things. So I, I know I’ve talked to nonprofits whose boards are, like, I read that article and A I is good. You know, it’s ending all of us like we can take our time. That’s one piece. Uh, I also think it’s important for organizations to think about where they are already working, what communities they already work with, what data they already have. Like this isn’t start a new project when we’re talking about A I. Um And so I think we’ll get into that more in our, in our conversations here. Um And of course, that A I isn’t new. Well, I mean, artificial intelligence is a phrase is the, is the broadest umbrella term we could use for these types of technologies. And so to, to have these sentences that say like A I is new and it’s here and it’s going so fast. Like what is that? That’s like encompassing so many different components of technology. Uh And so what do, what do we really mean when we’re talking about A I? Are you talking about a model that you set up inside of your organization? You know, to help identify program participants that need extra support? That could, that can be A A I. But that’s very different than saying, oh yeah, we’re just using chat GP T to help, you know, start some of our drafts. OK. Those are so they are wildly different things. And so to talk about them in the same breath as it’s all a I it sets folks up to already have kind of a disconnected conversation even from the start. All right. Thank you and hold our feet to the fire. Uh Especially me because the three of you think about this all the time and I don’t. So, you know, if I, if I lose that context that you just revealed, shared with us, please, uh call me out. All right, Justin big picture, please. What do you go on Amy? You know, the hype cycle of it’s gonna save us, it’s gonna destroy us. And now just kind of how do we make use of it? We’ve been going through this, this process as a, as a community. I, I think one of the things when I zoom out, I, I just see um some tectonic shifts that are impacting the sector from some big demographic shifts in European countries in the United States where we force is getting older, that’s putting tons of pressure on aged care and front line community workers, some big shifts in uh continents like Africa where education, skilling and jobs are all critical and the nonprofits facing off on these issues aren’t getting any additional funding. GDP is stabilized in many countries, but we’ve hit a new set point for inflation that’s impacting pocketbooks. It’s impacting people’s ability to raise money. And so really, you know, the question that we have to ask is how do we use A I in, in missions to help organizations raise more money, help them deliver more effective program, help them rise to these challenges that are continuing to create pressure in the sector. And how do we do all of that in a way that’s responsible in a way that’s safe in a way that’s inclusive. And that’s actually a pretty complex topic that I hope we spend some time on. Indeed. And thank you for the uh global perspective. Tristan, big picture of thoughts, please. I have lots of thoughts similar to, to Amy. And I, I think where I start off with is kind of like in a very, uh, I worked for 20 years and I still am working in, in nonprofit and I see how, um over those years nonprofits and, you know, small organizations have seen something that’s bright and glittery and then like, so amazed by it and been like, yes, we want it, we’re going to take it in and we have no process for building it into our, our operations. We have no forethought for it. We have no contingency to, um, to live by when we’re folding this in this ideal state. We, we’ve already jumped like multiple steps to um us envisioning how we’re going to operate with this bright shiny tool that we have. And that’s never been the case in my years, um, that I’ve, I’ve been a nonprofit and it’s, if anything, it’s always been uh folded in, in a way that doesn’t have a lot of forethought too. So I think the things that come to mind for me that make me curious and also a little bit, um, reticence um about just the blanket, the umbrella term A I is um folding it in where it makes sense and not where you want to add a little, you know, uh icing on your cake where it does where it needs none. And so, um that’s where II I intersect with it. There’s another piece of it um where I, I am a little um critical of it and concerned about it. Um because I think that this can, you know, we, to Amy’s point, we think about A I and a lot of people go in different directions. I think the, the baseline for a lot of people is they go to like a I generated pictures or chat GP T um to do those things and it’s much more than that, but I do think about a time anecdotally where um I was at a conference and I was um passing by a booth and there was like a very lovely, you know, picture of an older um couple and I was like, oh, that reminds me of my grandparents. It was an older black couple and I was like, oh, that’s so cute. It reminds me a lot of my grandparents. It’s like very, you know, and then I I went in closer and this is a, a booth that’s, you know, managed by a bunch of white folks. And, um, and then they were like, oh, did you know that this is an A I generated picture? And that didn’t feel good to me as a black person that didn’t feel good. It felt incredibly like I had been misled in a really scary way. Um I feel like I have a really good detector of like what’s real, what’s not my BS detector is like always up and on and that scared me because I was duped hard and that scares me in a way um less about nonprofits, but just the overall overall globalization and usage of it and implementation that it could go in to hand to the hands of people and create false narratives about marginalized groups um just based on what they, what product they wanna sell. And that is scary. Um And that, that’s something that I think um has just stuck with me for um for a while. Thank you for raising the the risks and, and potential, you know, misuse abuse. We, we need to go to artificial intelligence to create a uh a picture of an elderly black couple that was, it was necessary to do. And also thank you for the valuable parallel, you know, you, you make me think of uh social media adoption when Facebook was new, you know, we, we assigned it to an intern and we put it like the cherry on top where we didn’t need a cherry, but the intern had used it in college. So, you know, she may as well do it for us full time. Uh It very valuable, interesting parallel. Um Amy start us off with just a common I definition, you know, um artificial intelligence, generative, I mean, a generative artificial intelligence. That’s, that’s what we’re largely going to be talking about. Uh if not exclusively. I, I think so, what is, what is, there’s a lot of that? I think we’re, we’ll start with taking one at one at a time, right? Sure. No, I was just gonna say, I think um we already are exposed when we’re thinking about technology in our nonprofit organizations to lots of different terms, lots of different companies putting things out there with the uh not necessarily cloaked, you know, it’s not, it’s not a hidden desire to reinforce that they’re specialists, they know what they’re doing. And like us lowly nonprofits don’t know, we couldn’t understand those fancy terms, right? And so I always, I mean, I teach a course and I always remind folks like you absolutely can know what these words mean, you know. Um And I appreciate that there are so many places even actually, like I, I, I’m never somebody that promotes um these things. So folks know this, but like Microsoft has actually offered, you know, community learning spaces to say these are what these words mean. Um So artificial intelligence is like I said, the biggest umbrella term for all different types, generative A I uh machine learning, all of these components that people might talk about as if they are one different thing. They’re all like within that same A I umbrella. And I just want to say two words because they’ll probably come up in our conversation. I know you want to go one word at a time. But the words I hear from folks the most where they’re not, they feel like they should know what this word means and they don’t and they feel like silly that they don’t understand our algorithm and model those words are used all the time in talking about generative A I, which means the tool is, is set up to generate something back for you. Tristan used an image, uh you know, visual image uh example, but that could be text, that could be video, that could be audio, you know, it’s, it’s asking the the tool to generate something for you. Um But an algorithm we’ve heard this word like, you know, oh Facebook’s algorithm is like choosing what I see, right? The algorithm means the set of rules. So in Facebook’s newsfeed, that set of rules says if something already has a bunch of likes prioritize it, right? If it has uh you know, two friends that you’re connected to already commenting, prioritize, so it’s whatever that set of rules is that says this is how to generate a older black couple image, what whatever those rules were, that’s what algorithm means. And model essentially means like you can think of the same, the the word is used in the same way as uh when you say model about cars like it is the whole set put together, right? It’s got the data, it has the algorithm, the rules that say how, how to do it, it has the input, whatever you’re gonna ask it to do that kind of when people say what’s the model? They’re really saying. OK. What, what’s the package uh of how this tool is working? Thank you for all that. It’s time for a break. Open up new cashless in person donation opportunities with Donor box live kiosk. The smart way to accept cashless donations. Anywhere, anytime picture this a cash free on site giving solution that effortlessly collects donations from credit cards, debit cards and digital wallets. No team member required. Plus your donation data is automatically synced with your donor box account. No manual data entry or errors make giving a breeze and focus on what matters your cause. Try donor box live kiosk and revolutionize the way you collect donations in 2024. Visit Donor box.org to learn more. Now, back to artificial intelligence for nonprofits. Redux, Justin, I see you taking lots of notes. What’s uh what’s going on? What’s going on in your head? What what? No, I think um what just as Amy highlighted. One of the things that’s important to highlight is um we, we’ve been using A I for a really, really long time and there are really important use cases that have nothing to do with, with generative A I, things like machine learning, right? That allows us to do things like predict donation, things like machine language that allows us to translate from one language to another. Things like machine vision that allows us to identify and classify objects. All of those are important um tools as we look to solve different problems. Um In in the sector, generative A I is as Amy was highlighting is a new class of artificial intelligence that allows that’s capable of creating effectively novel content because it’s reasoning across, you know, all of the information in the internet and using as a news highlighting algorithms to identify patterns that allows it to um you know, produce answers in a really uh in, in many times intelligent ways. However, uh as Tristan was highlighting, you know, ensuring that um these models are inclusive, are representative, are safe, are understood, are all things that were continuing to work uh to put frameworks around and tools around uh so that they uh produce positive impact, not negative impact. And Justin how can we ensure that that actually happens? You know, there, there’s a lot of talk about biases, you know, uh the the the large language models are trained on predominantly white uh uh language sources. So you’re gonna, there’s so there’s bias uh the, the so that, you know, there are equity issues. But uh what uh what is the big tech doing to actually uh keep these, keep equity centered in and, and keep lack of biases centered as these models are adopted using the algorithms that, that Amy just defined for us. Yeah, it’s a really multifaceted answer. I’ll only hit two points and we can go much deeper if we want, we release. Uh just in fact, in the last week, this the Microsoft A I access principles trying to get at this very problem which has 11 core components. I’ll speak to two to give you a flavor of the kinds of things that we need to do as we think about the A I economy globally to ensure it’s fair, representative uh and safe. The one of the principles is making sure that A I models and development tools are broadly available to software developers everywhere in the world, everywhere in the world and every culture in the world training on the language and on the history uh and on the societies all around the world uh to create much, much more representation. As you probably know, many of the models have been developed in North America and therefore reflect some of those cultural biases. So, federating these tools that is critical uh in the in the A I economy. Secondly, you know, um companies and organizations that produce A I need to have rules uh for how they um check and balance the A I to ensure that it’s responsible, it’s fair, it’s safe, it respects privacy, it respects uh security, it’s inclusive, it’s transparent and we call those rules that Microsoft are responsible A I framework and it’s not just a set of principles, it’s actually an engineering standard. And when applying that engineering standard, we were looking at uh fairness in speech to text. So taking speech and transforming it into text and we found it was a couple of years ago, we produced this article that our, our speech to text algorithms were not as accurate Black and African American communities in the United States as they were for Caucasian communities. Um And that was largely a function of the training data that was used. And so we had to take a step back using our framework that caught this issue to say, how do we work with the communities more effectively? How do we bring socio linguists in to help us understand how to capture all of the rich diverse city of language to make sure that our speech to text capability is representative of every citizen that we’re, we’re rolling this out to. And that’s an exam and we did that and, and today it performs much better and there’s more work to do. But it’s those kinds of frameworks and guard rails that are really important in helping uh people design this stuff in a way that benefits everyone. Tristan. What’s your reaction? You, you’re thinking about equity all the time. Um What’s my reaction? What isn’t my reaction? And I would say, um I, I love that and I love what Justin was saying about um how, you know, making it a Federated model as opposed to it. I mean, yeah, everything, I only say everything but a good amount of things are being generated created curated in North America and baked into those models and algorithms are like biases that skewed towards white men. And um and that’s not OK. I think that excludes me in particular, but also like, you know, I, I think um having um a plan for that as opposed to being reactionary to being like, well, gosh, we didn’t know what was going on and being um uh a little more, less reactionary and more um forward thinking in that way. Yeah, proactive um is, is always a good place to start. I think a few other things that do come to mind too in terms of um making sure that communities of color marginalized communities are um not um constantly shouldering even outside of A I but constantly shouldering um the mess ups of like the brand new tool that came out on the market and that seems to always be the case and there’s always like a headline months later where it’s like, so and so we found out, this tool wasn’t geared towards her facial recognition wasn’t geared towards like, you know, black folks. Um, and it was like, historically wrong. And so I, I think about those things, but I also think about um, it through a nonprofit lens because we’re on a nonprofit call. Um, and I, um, I bring up the, another anecdotal story of um having, uh, being on a call and having an A I note taker bot um hop into the zoom call too. I think we’ve within like the last half year we’ve been on calls where it’s like, oh, I don’t know about some actual person or a thing or like, you know, it, it’s very ambiguously named sometimes where it’s like Otter, one of them is Otter, right? And this Otter is all of a sudden it’s in our meeting. This Otter is, yeah. And I think, you know, there is a lot of benefit, there’s a lot of benefit in having um you know, uh note taking tools and um also captioning tools that are, are, are for folks in terms of accessibility. There are folks that have completely different learning styles. There are folks that take in information at different levels and different wavelengths of things. And I say that all to say that like, you know, I would like to see a world where um it was scarier um with, to keep with the Otter Box or not Otter Box. Sorry, that’s not Otter Box is not a sponsor of this. Um But the Otter A I um uh gene Note taking tool was that after I got an email randomly from the, the note taker to all the people also to all the people that were in that call with a um a narrative recap of everything that we, we talked over. It wasn’t a transcript, it was a narrative recap, which is fine enough. OK. Um There were, there was a screenshot of just a random person that was on the call that was also there. And also um what’s most scary for me, I think or just very concerning um is um at the bottom, it was like here’s the productivity score of the call, 84% here’s the engagement of the call, 72%. And it’s like where it, where is at least, at the very least, where’s the asterisk at the bottom that says this is how we calculated this whatever. And I, I immediately go, I’m not a pessimist, but in that moment, I was like, this is going to be used by people in higher positions, people in power to wield over folks, middle management and direct service to say, hey man, you didn’t have a um 84% or higher engagement score on our last zoom call, you are now on a personal improvement plan and that is a scary place to be. And so I think less about like these tools are what they are. But I think about the people and the systems and the toxic systems at times that sometimes wield these brand new shiny tools in a way that doesn’t feel good and also is working against their mission and against their employees. Its time for Tonys take two. Thank you, Kate and thank you for supporting nonprofit radio. Uh I like to say thanks every once in a while because I don’t want you to think that we’re taking you for granted. I’m grateful, grateful for your listening. And if you get the insider alerts each week, I’m grateful that you get those letting us into your inbox. Um This week, I’m in Portland, Oregon recording a whole bunch of good savvy smart interviewers for upcoming episodes. Hopefully, that helps like show our gratitude because we’re out here collecting good interviews for you to listen to if you can’t make the nonprofit technology conference yourself. So thank you. I’m grateful that you listen, grateful that you’re with us week after week. That’s Tonys take two Kate. Thank you guys so much for listening to us every week. We appreciate you. Well, we’ve got Buku but loads more time. Let’s return to artificial intelligence for nonprofits redux with Justin Spell Haug Amy Sample Ward and Tristan Penn Ki. I love that you brought that up. Um Don’t love that it happened that you brought it up as an example here for folks because I think it’s uh a easy entryway into a conversation on one of the points Tony mentioned at the start of the call, like, what are some of these preconditions? Um And you were like, oh people are like, oh bright shiny, right? That’s what we do. Oh bright shiny, like I’m going to use this tool that like took the notes in here and a place where we’ve seen for many people, many years in in ten’s research is that nonprofits struggle. This isn’t to say that for profit companies don’t also struggle with this, but nonprofit organizations struggle with consent, they struggle with privacy and security. And so here’s a well meaning well intentioned, right? I’m going to use this tool except it’s emailing you, you didn’t consent to that. It emailed all the participants in the call. There was no opt in, right? Let alone a very clear opt out like why did I even get this? Um That’s not even to say opting into sentiment analysis of whatever is a community zoom call, right? Um And so when we peel that back and say, OK, well, we just wouldn’t use that note taking, right? Sure. But when we’re thinking about preconditions for this effective work as an organization do, what are your data policies in general? The number of organizations that we work with that still don’t have a data policy because they think, well, isn’t there like some law about data? So like we, why would we have our own policy? OK, there is some law related to data, right? Different types of data have different laws, but that’s not the same as an organization saying, what data do we collect? Why do we collect it? How long do we retain it? What if somebody wants us to remove it? How do we do that in our systems? Right. So this level of uh fidelity to your own data, to your own community members, to the policies that you’ve set up to manage those relationships. Um And trust for so many organizations are already not in place or, or like I said, there’s just not a fidelity to them that that makes them trusted. So then to say, oh yeah, we’re ready to, we’re ready to add this note taking app to our community calls or our client calls. It just that that’s the place where I have the most fear is actually not the tools having bias. I know they have bias and that is a place of concern and, and a place we can, can address it. But my mo the most fear I have is people still operating within that without any of the structures or policies or, or training to deal with both maybe bias and a tool they use and their own bias or their own issues, right? And it it accelerates the harm that that can be created in that. I mean, I want to use some of that to, to go to Justin and uh that’s something very closely related. Uh the, the uh the nonprofit leadership role, the responsibility of, of nonprofit leaders. I think it gets to a lot of what Amy was just talking about. But what, what do you, what do you see as the, the responsibility of nonprofit leadership in, in formulating these policies? But also in just, you know, making sure that the preconditions are there so that we, we can be successful in integrating artificial intelligence, whether we’re bringing an exterior, an outside tool or, or or building our own. Even that, that may be a, that may be a big lift for a lot of listeners. But, but generally the, the, the nonprofit leadership’s role. Yeah, I mean, there’s a lot of the nonprofit leadership play today and I think we have to meet uh leaders where, where they’re at and, and I think the very first step and Amy mentioned this in the very beginning of the call is raising the the capacity of their knowledge and of their staff’s knowledge of how these tools work and uh what are the edges of the tools and how to apply them effectively in the flow of work. And um there is training available as, as an example, we have a four hour course on linkedin. You don’t need to do it all at once, but it’s actually pretty good. It’s for, it’s not for developers, it’s not for techies, it’s for front line program, staff, fundraising staff finance staff, the, the, the ed uh to really learn about how to think about these tools with that knowledge. Then you can take the next step, which is starting to engage, I think, simple ways to apply these tools to get on the uh on the ground experience of what they’re good at and what they’re not good at. Um you know, using things like uh from Microsoft. So I’ll mention, you know, BB or, or, or Microsoft Copilot to look at writing donor appeal letters or whatever the process may be, they can just start learning about these fundamental language models and what they’re good at. Um I think it’s important as an organization thinks about getting deeper into A I and really thinking about how do they apply it to their processes, whether that be fundraising, whether that be engagement with beneficiaries that they think really deeply about data uh and data classification and that, that, that gets a little sophisticated, but just ensuring that we’ve, we’ve got a strategy to use A I for the data that we want to use A I for and that we segment data that we do not want A I to reason on away. So start with, start with getting the basic skill skills built out. Um A lot of uh organizations I met I meet with are just at the very beginning stage of that, use the simplest tools to accommodate uh the job to get some experience and then start to think longer range around data, data, classification and more advanced scenarios that can be applied. Tony. Can I just, what’s that four hour course on uh Tristan? Let me just let me drill down on a free resource. I love free resources for our listeners. Tristan answers. It’s a linkedin course uh nonprofit uh A I fundamentals. But let me get that for you here. Ok, Tristan, go ahead. Yeah. Um Can I um I really like how Justin um initial uh said, you know, there’s a lot of nonprofit leaders plates already too in terms of responsibility. And I want to gently push um and answer your invite to, to call you in Tony um in, in the premise of the question which, which was what’s, what is the responsibility of, of nonprofit leaders now? And I would say yes, there, obviously, there’s a responsibility as Justin has illustrated that like we need to be better in terms of strategy um in terms of tech, in terms of A I um in general on how we fold these, these crucial tools in. But I would also say that there’s an equal and almost um larger responsibility on those who fund nonprofits. Um I think a lot of times in the nonprofits that I’ve worked with, interacted with and worked within um their operational and financial model has been very ham handedly built in a very um doctor Susan way, which doesn’t really make sense at times and it’s because a year after year, there are different grants, different fundings that require different things um at different times based on whatever the the hot new term is. Uh 1015 years ago, it was mentoring. So a lot of times everything was geared towards mentors. And I say that because this implies that um a lot of these nonprofits are already built on a structure that is very shaky. And so there’s a lot of other things that need to be done. But I do think um a big responsibility sits with folks who fund um nonprofits foundations. Um and also local governments, federal, the federal government in making sure that when they are pushing a grant or um putting out an RFP for a grant that says you need to fold in tech and you need to fold in A I in this way to get kids to learn or get kids in seats um in the classroom that you’re doing. So in a way that creates um longevity and solid um solid nonprofit organi operational work. Um And just doesn’t like slap an ipad in front of a kid. Um And I think that’s really, I used to work with boys and girls club. So that’s where I always default. Um But III I think that um I’ve based on my experience, it’s always been um a really weird way um of, of having um o going into a financial model um of an organization year after year because it’s like, oh, well, that we started doing that because last year’s grant asked for it and now we just do it into perpetuity. And so again, you have that little weird Dr Seuss style way of thinking. And I think um funders and um grant, um grant folks can do a lot by being very clear and very um forward thinking and how they are offering up these monies. It’s time for a break. Virtuous is a software company committed to helping nonprofits grow generosity. Virtuous believes that generosity has the power to create profound change in the world. And in the heart of the giver, it’s their mission to move the needle on global generosity by helping nonprofits better connect with and inspire their givers, responsive fundraising puts the donor at the center of fundraising and grows giving through personalized donor journeys. The response to the needs of each individual. Virtuous is the only responsive nonprofit CRM designed to help you build deeper relationships with every donor at scale. Virtuous. Gives you the nonprofit CRM fundraising, volunteer marketing and automation tools. You need to create responsive experiences that build trust and grow impact virtuous.org. Now back to artificial intelligence for nonprofits redux, you know, that’s not only the mindset like this, this, it, it feels like they’re being strategic by saying, oh, yeah. Well, we were able to come, we were able to pitch that in a way that we got the fund, but then that’s changing their strategies all the time. It also back to the point before is meaning the data you have to work with inside your organization is OK. Well, two years, we structured it this way for two years, we structured it this way. Do we even have like a unique idea to connect these people and say, oh, they were in both of those programs, like our own data sets are messy and influenced by funders saying, oh, now we need you to collect these demographic markers, you know, and it’s, it’s we we as organizations are often pressured by those funders to do it the way they want because it’s easier for them. Um and tells the story, they want to tell, but that’s really, really messing up the data sets and the program kind of uh processes or, or business processes that we have in place. And I I just wanted to connect that to broader things that intens worked on and advocated for for many years from the equity guide specific to funders. And that is that funding technology projects takes time and it takes a lot more money than like $30,000 for whatever the licenses are for something, right? Like it’s not uncommon that an organization building a model, an internal use model. This isn’t some big flashy commercial thing. This is just for them to, you know, like I said before, identify program participants that maybe, you know, could use intervention it’s not uncommon that would take two dozen tries to get the right model in place right? To really make sure the algorithm is, is fine tuned that the outputs are appropriate. Well, you can’t go through two dozen models in, in three months, right? And then have something there. A nonprofit would need a couple of years. And our, our funders, there’s already plenty of funders saying like, oh, now we have this A I grant, you know, opportunity or is that grant gonna be comprehensive of the work to get their data in a good place to get their program, staff ready and trained to Justin’s Point. Every staff person really trained adequately on, on not just what are these tools but what’s a good prompt? What’s a good use case for this, right? All of those pieces so that they can adequately and materially contribute to, then what is this project we want to do? What is the best fit for us and how do we, how do we build it and, and just to add on and we’ll wrap up to Amy’s Point and Tristan’s Point A I hasn’t changed the fundamental physics of what makes a good technology project. I mean, it’s people, it’s process, it’s tools, it’s capacity building, it’s a long term strategy, all that is the same. Um And if your listeners are wondering, where do I even get started in understanding the language of this stuff? Uh Because you asked the question. It’s called Career Essentials in Generative A I it’s on linkedin, it’s free. Uh And I take it it’s, it’s pretty good. So I think it’s worth worthwhile for your listeners. Thank you, Justin. How about uh in 10 Amy, what resources for folks? I mean, hopefully they’re already going to the nonprofit technology conference where there are gonna be a lot of, uh there are a lot of sessions on artificial intelligence. I know because I’m gonna be interviewing a bunch of those folks. So this is, this is probably the second of, I don’t know, six or seven A I episodes uh in, in, in different uh around different subjects. But N 10, N as N 10 as a resource for learning A, we have lots of them. There’s um you know, work uh not workbook but like a guide. There’s of course, the equity guide, there’s some materials on the website. We have an A I course and other courses that talk about A I, there’s community groups where you can ask questions and of course the conference. But uh thanks to Microsoft and Octa gave us some um supporting funding and 10 along with Institute for the future and project evident are at the tail end of a community design process where we’ve worked with over 40 organizations um in this process to create an A I framework for organizations, whether you’re a nonprofit or not, who are trying to make decisions around A I and our framing for this is the framework for an equitable world. So it isn’t just that you are a 501 C three registered in the US, right? Or that you’re a grassroots organization in whatever country like if you want to live in that equitable world, then this is the framework that we can all share and work in together. Um We’re going to do a little preview at the end TC and have whoever comes to the session is gonna get to road test it with us and then we’ll publish it publicly after the NTC. Um So lots more and obviously, I’ll, I’ll share that with you when it comes out. But um what’s really, I think important from this is that it is a framework that uh is built on the idea that all of us are part of these decisions that all of us have responsibility in these decisions. Um And that all of us are accountable to building, right? This isn’t um you know, the quote unquote, responsible tech or this isn’t like this isn’t just for those projects where you’re, where you’re gonna do something good over here. This is whatever we’re doing, it’s gotta be good. It’s gotta be building us into an equitable world because what else are we doing here? Right. If it’s not for that. Um And so I’m excited for folks to get to use it. It’ll be published for free everywhere anybody use it. Please go, you know. Um, so lots more on that too. Amy. You are perfectly consistent with the framed quote that you have behind you. All of us are in this life together. You’re living your, you’re living your framed art. Uh, uh, I admire it. Uh, Justin, we have, we’ve got maybe 10 minutes left. What, what would you like to talk about? We haven’t, we haven’t touched on yet or go further on something we have. Well, no, maybe, maybe I’ll just um build a little bit on what Amy was the question you asked, what are, what are the resources available? So I think that’s pretty useful to the, to the organization. So, so one is, one is the training that I mentioned too is uh we just recently ran a nonprofit Leaders Summit where we, where we had 5600 people together. Uh uh about 4500 online, about 1000 in a room talking about how do we grapple with A I? How do, what are the use cases that make this make sense? How do we think about data security and privacy? And we’re going to continue to invest in in that? We’re going to be rolling that out more globally as well with uh events in Australia and others. But that convening and that dial and just getting the community and dialogue I think is so important. I I learned a ton from that. We’re also going to continue to push on affordability and making sure that uh we’ve got affordable access to our technology so that every organization can use things like Microsoft Copilot uh for, for free um providing, you know that they, they’ve got access to our nonprofit offers and then finally, innovation. And I, I’m, I’m interested looking at scenarios that span the sector where if we invest, once we can create a multiplier effect. And one of the areas that we’re, we’re partnering on is with Save The Children Oxfam and many other organizations on the humanitarian data exchange, which is a large data set used to help organizations coordinate humanitarian and disaster relief domestically and internationally in a more effective manner. Uh So our mission don’t overlap uh but that data set hasn’t been super useful to date, applying things like language models training on that and creating a tool set that is cross sector for many organizations, you’ll see us um continuing to invest in that way. And I look forward to ideas from our intent partners here on the phone as well as you know, the community at large on on where we can make bets that will really help the sector together. Uh move, move forward Tristan. What would you like to touch on or, or go deeper in? We’ve got uh we got the, it’s 78 minutes or so. Um You know, I, I think I just wanna underscore what, what Amy was talking about and that we’ve, we’ve all been working on. Um, which is the, uh, I’m a little tired of you underscoring Amy, Amy and you, we force each other. You know, I agree with you should have seen us, we work together. It’s getting a little dull. It’s a little dull. Now. You should have seen us when we were in office. Our desks were 20 ft away from each other and there was a constant, there was a worn line in between our desks and nobody wants to be in between in that 20 ft in that 20 ft space. Um I will say um being a part of the community group, what Amy was saying about working with 40 other organizations um to figure out what um a healthy and um robust and equitable processes for any organization to um interact with and um field A I is crucial and I’m, I’m so glad that we are able to be a part of it and we’re, we’re going to be um debut it at NTC. It’s something that I’ve learned a lot from just based on someone who again, like I said before, I came from youth development. My degree is in child psych. Um So, but I’ve learned a lot over the years um working with N 10, working at N 10. Um But I think um one thing that’s, that’s been uh really, really beneficial is learning from all those folks in the group and um a couple of things that did come up in when we were creating that framework, which uh was um that organizations are making all kinds of decisions every day today. Um And I, I will say that it kind of highlights that I, we are talking about A I and how it like will look sound and feel and how it looks. This is all kind of uh we’re not meaning it to be, but it’s all within a vacuum. Um And we can’t think like that. We can’t think of all of us who have now, we are four years out from 2020 our lives were forever changed and every nonprofit will have their own sad story to tell about how the um the pandemic impacted them. And I say that to say is that like none, no one was prepared for that. And so if we um keep on talking about or um playing around with this idea of A I is like, it’s going to solve problems or it’s going to sit in this world um in this vacuum, we’re not doing ourselves justice and we’re being very forgetful about the past that we just went through. And so if we’re able to instead consider how A I will interact with the dynamic world that we all live within, um That’s going to better behoove us um both individually, but also organizationally when we’re planning strategically. Um If that’s year after year for you, if that’s every five years, I don’t know what that is. Um So having that strong tech um baseline for folks. And then I think also the other thing is people in all roles are considering A I and aren’t sure how it applies to them. Um I think uh staff, we’ve read stories um that A I will replace workers but have no idea what to do with, you know, where, where that fear sits with them too. Um It should just add to their work and not replace them. And I think a lot of we’re seeing uh you know, I’m, I um am on tiktok and so, you know, that’s a whole other like bag of algorithms and like, you know, things that we can dissect and pull apart. But I do, there are a lot of stories of, you know, there are folks getting laid off left and right. And um I, I would have to, you know, that begs the question why generally, but also like, what is the role of A I in all of this too? Um I think it’s really interesting when layoffs happen at a time when A I is accelerating um in a lot of our worlds, whether it’s in tech and whether it’s in other sectors across the world. And I think that there is a lot to be done by organizations who don’t fall prey to like the siren song of like A I and are going into a clear minded and not saying, oh, well, we can cut out this department and put it in, put, um, you know, this learning module in or this, you know, I think that’s, that’s really where, um, you’re going to see a lot of organizations and commu, um, organizations and companies thrive as opposed to just, um, laying folks off a lot there. No, we’re, yeah, we’re, we’re taking it in. Yeah. No. And, and the reality is that I admire the, the consistency between you and Amy. Uh, and, and, and, and, and generally, I mean, I made fun of you, but what it shows is you’re all thinking the same way. You know, you’ve all got the, uh, the same concern for the nonprofit Human first, human first. You know, like we’re all humans and we’re all prioritizing um us as humans and if we start prioritizing other things and it’s not going to, um, go well, well, but at end to end, you’re, you’re walking the walking the talk. So, and consistently Amy, you want to check us out with, uh, all of us are in this life together. Yeah. I mean, I think the biggest thing I, I want folks to leave with is that, that future is not predetermined. We, we are not sitting down and saying, well, ok, like I’ll wait for my assigned robot to come tell me what to do, right? It, it is still up for all of us to write that every day. And the people who most need to have their sentence at the start of the article or whatever, you know, at the start of the book are the folks who are being told in a lot of different systemic media type ways that they do not get to have their sentence in the article, you know. And so I, I hope that nonprofits know this is both an opportunity to shape and influence as A I tools are being developed to shape and influence the tools that we build within our sector for ourselves with our communities. But it’s also a responsibility for nonprofits who are the ones often closest to and most trusted by those systemically marginalized communities who are experiencing the most real time harm to be the supporter that brings them into that work. They are not necessarily going to get tapped by uh a company to learn this or do whatever. Even though I hear Justin saying these, these, you know, opportunities are, are free and accessible. You as a nonprofit can say, we think we might build something. Can you be in our design committee? Can you work with us? We’ll make sure that we all learn together, right? As an organization, they’re already in relationship with they, they’ve, you know, maybe benefited from programs or services. You have the responsibility and incredible opportunity to be the conduit for so many communities to enter this, this quote unquote A I world. And that’s a really important I think gift uh you know that we have as a sector to, to be the ones helping make sure so much, so much more of the world is part of developing these tools and designing them to be accountable to us as people, their Amy Sample ward. Our technology contributor here at nonprofit radio and the CEO of N 10. Also Tristan Penn Equity and Accountability director at N 10 and Justin Spell Haug, new corporate vice president and Global head at uh Technology for Social Impact at Microsoft. My thanks to each of you. Thank you very much. Real pleasure. Thanks so much, Tony. Thanks Justin. I’ll see you in 20 ft. Thanks so much, Tony. Next week, the generational divide now, this is interesting uh because uh we’ve been promising this for a couple of weeks now and it hasn’t materialized. It’s very relieving to have someone, an associate producer who I can blame for this show having been promised the generational divide, having been promised for weeks on end and not coming through even though it doesn’t matter that the associate producer, Kate has nothing to do with booking the guests that the host takes care of that himself. That that’s irrelevant. I blame the associate producer and this, this show, the generational divide had better come through next week or there’s gonna be a shake up. I’m the one who just reads the script to either. Oh, yeah. Minimize the uh OK. Your title is not script reader it’s associate producer. Well, if you missed any part of this week’s show, I beseech you look, I was slow on my cue. There I beseech you find it at Tony martignetti.com were sponsored by donor box. Outdated donation forms blocking your support, generosity. Donor box. Fast, flexible and friendly fundraising forms for your nonprofit donor box.org. And by virtuous, virtuous gives you the nonprofit CRM fundraising volunteer and marketing tools. You need to create more responsive donor experiences and grow. Giving, virtuous.org. Our creative producer is Claire Meyerhoff. I’m your associate producer, Kate Martinetti. The show’s social media is by Susan Chavez. Mark Silverman is our web guy and this music is by Scott Stein. Thank you for that information, Scotty. You’re with us next week for nonprofit radio. Big nonprofit ideas for the other 95% go out and be great.

Nonprofit Radio for March 11, 2024: Election Year Activities

 

Gene Takagi: Election Year Activities

Gene Takagi

In this presidential election year, everything related to politics is prohibited, right? Not so fast. It’s not that simple. There are actions you can take, including lobbying on ballot measures. As long as you follow the rules. There’s no one better to explain those rules than Gene Takagi, our legal contributor. He’s the managing attorney of NEO, the Nonprofit & Exempt Organizations law group.

 

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And welcome to Tony Martignetti nonprofit radio. Big nonprofit ideas for the other 95%. I’m your aptly named host and the pod father of your favorite abdominal podcast. Oh, I’m glad you’re with us. I’d be forced to endure the pain of chronic inflammatory demyelinating, poly ridicule, neuropathy. If you attacked me with the idea that you missed this week’s show, here’s our associate producer, Kate with what’s coming? Hey, Tony, it’s election year activities in this presidential election year. Everything related to politics is prohibited, right? Not so fast. It’s not that simple. There are actions you can take including lobbying on ballot measures. As long as you follow the rules, there’s no one better to explain those rules than Gene Taghi. Our legal contributor. He’s the managing attorney of Neo, the nonprofit and exempt organizations Law Group on Tony’s take two 24 NTC is next week were sponsored by donor box, outdated donation forms blocking your support, generosity, donor box fast, flexible and friendly fundraising forms for your nonprofit donor box.org and by virtuous, virtuous, gives you the nonprofit CRM, fundraising, volunteer and marketing tools. You need to create more responsive donor experiences and grow giving. Virtuous.org here is election year activities. It’s always a pleasure to welcome back our legal contributor, Gene Takagi. He’s the managing attorney of Neo, the nonprofit and exempt organization’s law Group in San Francisco. He edits that wildly popular nonprofit law blog.com that you should be following. And he is a part time lecturer at Columbia University. The firm is at Neola group.com and he’s at GT A. It’s good to see you, Gene. Welcome back. It’s great to be back, Tony. It’s great to see you as well. Thank you. It’s always a pleasure. I don’t mind saying it twice. I’ll say it a third time. It’s always a pleasure. And this one particularly because it’s our uh what this be our quadrennial every fourth year. Uh And you’ve been on the show for many, many years, we’ve done this several times in our presidential election cycle. It’s time to talk about uh what’s permissible and what’s not permissible around political activity. So let’s start with the upside that. I think a lot of folks may not be aware of even though we’ve, we’ve said it before, but it’s been four years to be fair. It’s been four years since we’ve talked about this um that uh nonprofits can do lobbying and uh and a decent amount of it too. Yeah, it’s, it’s so under recognized. I’m glad you’re bringing it up. There’s a study that came out um recently, but it was about the 2017 and 2018 years, about how many charities out of the more than million charities that registered with the IRS and report to the IRS, how many actually report doing lobbying and it’s fewer than 10,000. So that’s less than 1% have reported lobbying uh, as any part of their activities. And I think part of it stems from, you know, 501 c three kind of says in, in more legalese kind of uh verbiage. Hey, you can engage in substantial lobbying. Yeah. You know, that terrifies, you know, a lot of charities go, oh my God, we can engage in substantial lobbying. What does that mean? What, what, what does substantial mean? And so we better not do any of it and it keeps everybody away from it completely. It just, and then they just default to nonprofits can’t do lobbying. Yeah, exactly. And, you know, lawyers are, are not, you know, are, are, are a little bit complicit in this as well because, you know, when they’re not sure about this thing and if you don’t practice exclusively in the areas that, like, I practice it, why would, you know that, well, you know, substantial can mean a lot of different things depending upon the test you elect to, to fall under. So you’d probably say, well, you know, just to be on the safe side, better not lobbying, but that’s actually terrible advice for public charities. So let, let’s, uh, let’s debunk this insidious myth. Yeah. And, and let’s raise up, there is great reasons for charities to lobby, especially right now. I mean, we’re at a pivotal time when a lot of rights are up at issue and charities may have like very strong views about those rights, whether it be women’s rights or whether it be first amendment rights or whether it be environmental rights. I mean, there’s just a lot up in the air right now where charities and, you know, charity beneficiaries and charity supporters really have a strong point of view and they’re afraid to share it through the charity. So let’s add in LGBT Q and trans rights. Yeah, absolutely. And, you know, we can create a whole, a whole list of other rights as well. Charities, you know, span span the spectrum of, of all sorts of things. And so, um yeah, you know, when you have something to say, being chilled and in fear of saying it because you don’t know whether the law allows you to or not is, is terrible. So glad you’ve provided kind of the, the, the place where we can talk about it and say, hey, ok, what can charities do? And so the, the first thing to know about is there’s sort of two tests and the default test is if you have done nothing except, you know, kind of reported with the IRS regularly, your nine nineties as you’re supposed to do, you haven’t made any sort of election to, to, to do lobbying or measure lobbying in a different way. It’s called the substantial part test. So what does substantial mean? And the best guidance we have on that is like a case from the fifties. So understandable why people are concerned about it. But hey, there’s been a lot, just in the past few months, there’s been a lot of talk about going all the way back to Marbury versus Madison in the 17. No, it was 17, late 17 hundreds. It’s very old. I, yeah, I didn’t look it up. But, so, you know, that like when, when the Supreme court reporter was, was cranch, cranch, remember that? All right. Now, I’m getting a little in the weeds of law school stuff but the, the before hundreds of years ago there was a, a reporter that used to do the Supreme Court opinions and the name of that reporting volume was branch. So it just sounds like, uh, you know, it just sounds like something from Pioneer Days branch anyway. So the 19 fifties, you know, it’s pretty recent consider compared to Marbury versus Madison and Ranch. It is. But then, you know, just what’s happened over the last five years has been like event. So, um, but I think we can kind of rely on it for, you know, a rule of thumb. Like if you spend more than 5% of your total budget on lobbying, you’re probably safe any more than that you might be crossing the line. This is under the substantial part test, total budget, you said total total budget or total expenditure. So let’s say you, you spend $100,000 and if you spend 5000 of that, $100,000 on lobbying, you’re probably safe. Um The better way to look at that is probably not just a percentage of your expenditures. So it’s percentage of the resources that are going into it. So if, if you know, 5% of your total resources expended, not just money, but volunteer time and everything else. Um If it’s more than 5% you might have some issues with the substantial part test. The IRS isn’t really enforcing on this very hard. I, I would say they’re actually very poorly enforcing this. They’re openly non compliant, especially churches out there that are saying go ahead, sue us or take us to court. We want to go, we want to take this to the Supreme Court anyway and see if there is a constitutional basis for, you know, this political campaign intervention, prohibition often referred to as the Johnson amendment. Um But you know, it is what the law says right now. So more than 5% maybe you have an issue there, be careful. Ok. And again, it’s 5% of total resources expended. I would say that’s your total resources, not your, not your, not just your budget. I, I would say that is the better way to look at the case in the fifties, total expenditures only. Um So now the other way to, to do, to measure lobbying and whether it’s substantial or not is the way that we recommend the vast majority of charities to choose. Um And it’s something called the 501 H election. And I know we’ve talked about this before as well. So by electing the 501 H expenditure test, um it means that lobbying isn’t measured on all the facts and circumstances. So it’s not like a complete resource test of like how much of your total resources which involves a lot of thinking, right, volunteer time and like your office space. And like, so the expenditures test says, well, it’s too hard to do all of that. So if you elect this and it’s a very, very simple form, it’s about half a page long. Um and it’s basically name and check the box and address. So it’s super simple. If you elect it, then you have strict sort of requirements of what is substantial and what is not substantial. And so it’s very clear and it’s just based on expenditures. And in this test, you’re allowed to expend up to 20% of your 1st $500,000 in expenditures um on lobbying and it’s not considered substantial. So not 5%. Now, we’re talking about 20% of your 1st $500,000 and this is on your exempt purpose expenditures or your mission related expenditure. So it doesn’t include things like investments and stuff. So, on your mission related expenditures, you’re allowed to spend 20% of your 1st 500,000 15% of your next 500,000 10% of your next 5% of the remaining up to a total cap of $1 million in lobbying, which you’ll hit at about the 17 to $18 million range of mission related expenditures. You’re gonna, you’re gonna hit the limit, um, based on those formulas at about uh 1 million, the $1 million cap at about 17 to $18 million of mission related expenditures that is not substantial. So that’s a pretty generous amount of lobbying that’s allowed. This is right. Right. This is a, this is a good bit. Now, we, we didn’t say the name of the form. It’s the, it’s IRS form 5768 and 55 768. And it is, uh, it’s, you left out one little item. You have to put the end of the tax year that you want the election to choose to be for. But it’s so simple. It is like, it’s, it’s like a third or a half. It’s, I think two thirds of the page is the instructions and one third is the election. It’s just, it’s, it’s a name, address, end of the tax year and your signature. And it’s, and what’s great about it too is you can elect on December 31st for it to apply retroactively for that whole year. So you can make your decision last moment and say, hey, we want to fall under this expenditure test. We don’t like to think about all the facts and circumstances. We’re a charity that has less than a 17 or $18 million annual budget. Most of the listeners here probably fall into that category. Um So the 501 H election just makes things simpler and it allows you to lobby safely within the tax law limits that you’re allowed to without jeopardizing your 501 C three status. And now you can go ahead and fight including lobbying, which doesn’t mean paying a lobbyist, right? It means stating your position on your website on a particular bill saying, hey, this law should change or we need this new law or we need a budget increase that requires our city council to prove this like budget, that’s legislation as well. So if you have a position on it, it’s lobbying, charities should not be afraid to lobby like you can lobby and the limits are fairly generous, especially if you take that 501 H expenditure test. The form is available online 5768 as you said, super simple. And if you don’t like it, let’s say you grew to, to become a $50 million charity next year and you don’t like that $1 million cap anymore. You can elect out of it. Just the same, it’s elected in. So it’s super simple. Same form, yes, same form to elect out if you, if you bust the uh bust that, that limit uh or that, you know, that rough, rough uh expenditure number. Um The other thing you mentioned casually, I want to emphasize, this includes local lobbying, local local issues. This is not only our biggest national issues like first amendment and, and uh reproductive rights. This could be a local council thing like a, like a budget or uh or um now, now uh lobbying can be now, uh I’m spilling over now. Can that be there’s not candidate advocacy, right? Like not, not getting into supporting candidates or denouncing candidates. This is all about issues. This is issue lobbying. So we’re gonna get the candidates, we’re gonna come to candidate, mostly prohibitions, but some things as long as they’re anyway, I don’t want to spoil the, I don’t want to take away your, your info, but we’re gonna get the candidates very shortly. But this is, this could be very local issues like you said, like a budget or a zoning, a zoning thing. Yeah. Anything that’s gonna appear by a legislative body that appears, you know, in the law, you can comment on existing law, you can ask for a change on that. You can propose a new law or back a new law that’s coming out. You don’t have to hire a lobbyist. It might just be a communication, uh, that you put on your website that’s lobbying. It’s probably really low cost if you’re gonna like, tweet it, uh, or email, email campaign, print mail campaign if you want to go to that extent. Yeah, this is all, this is all well, within your, uh, what’s allowed, well, within your purview and just take the 501 H, now, do we have to know what 501 H says, does that matter? Do, do we have to go into what 501 H says, or just, just fill out the form? Yeah. So you just know that you’re electing to measure your lobbying under the 501 H expenditure test. That’s basically what it says. So you’re electing to measure lobbying, not on all the facts and circumstances test that the IRS and then the court would have to apply if you ever, you like argued about it. Uh just strict numbers and you know what the numbers are, you fill them out. So you’ll know exactly what happens and even better if you don’t make the election and you, you use the substantial part test, the 5% rule of thumb uh test. If you are ever examined by the IRS and you cross that threshold, they can revoke your 501 C three status for crossing that threshold in one year under the 501 H election that doesn’t happen. There may be a penalty tax applied to you in, in any given year, but you actually have to, to, to exceed that cap over four years. Um, and that’s significant. Ok. Ok. Well, you did say the IRS is not in actively enforcing this. Um, not that they’re never going to, but they’re not being very proactive about it. But still you get, you get a four year window under the 501 H test versus just a one year window in the facts and circumstances which is limited to only 5% too. There is an added wrinkle though to the 501 H test. Oh, here it comes now. All right. Read the foot. You gotta always read the footnotes. All right. Now what? It’s time for a break. Open up new cashless in person donation opportunities with donor box live kiosk. The smart way to accept cashless donations anywhere. Anytime picture this a cash free on site giving solution that effortlessly collects donations from credit cards, debit cards and digital wallets. No team member required. Plus your donation data is automatically synced with your donor box account. No manual data, entry or errors, make giving a breeze and focus on what matters your cause. Try donor box life kiosk and revolutionize the way you collect donations in 2024. Visit donor box.org to learn more. Now, back to election year activities. Gene and I just had uh technical difficulties which means uh since he lives in a big city and I live in a suburban beach town. Uh, my wi fi just cut out. So our sound is not gonna be as good as it was because now we’re recording on my phone. But as, you know, nonprofit radio perseveres through these minor technological let downs we, the, these things, these things don’t trouble nonprofit radio at all. So we’re still gonna, we’re gonna continue. Gene was, uh, Gene. I’m just gonna let you pick up, go ahead. Terrific. And we know charities have resilience as well. Um So under the 501 and under the 501 H expenditure test that we’re recommending to most charities. Um uh there are a couple of wrinkles. So one of the wrinkles is, is that there’s two types of lobbying, direct lobbying where you’re contacting uh uh a legislative body directly and asking for a change in the law or introduction of a new law. Um and grassroots lobbying when you’re telling your public to contact a legislator or legislative body to change the law. And so in grassroots lobbying, there’s going to be some sort of call to action. It’s going to be the charity expressing a particular view on a specific piece of legislation with a call to action to the public without that call to action. It’s not even lobbying. So you can do all of that. You want, you can actually express a view on a particular piece of legislation and not give any sort of message to the, to the public about who to contact or, you know, provide the information, the contact information of the legislature, um which is sort of implied called the action. You can include none of that, but just say, hey, this is the way our charity feels about this piece of legislation period, that’s not even lobbying uh for purposes of the expenditure test. So another good thing to note of, of advocating your point of view. But if you do decide on the 501 H expenditure test note that the grass roots lobbying limit is 25% of your total amount of lobbying. So if we said 20% is your cap on your 1st $500,000 on exempt purpose or mission related expenditures. So 100,000 of that $500,000 is safe, well, then $50,000 would be the amount that you could do of grassroots lobbying of that $200,000 limit that you have. So 25% cap on the grassroots lobbying expenditure. And as I said before, under the substantial part test, if you don’t make this election, if you exceed the amount in one year, you can lose your 501 C three exemption. Although that’s very, very unlikely based on sort of very poor irs enforcement on this issue right now. But under the 501 H expenditure test your measurement, you, you can get hit with a penalty tax of 25% of the excessive amount of lobbying if you lobby excessively. Um, but you will not get your tax exempt status, your 501 C three status revoked unless you exceeded the lobbying limit for a four year period. And you have to have exceeded it by more than 50%. So there’s a huge benefit to this 501 H expenditure test election. 5768 is the form number. We really urge most public charities to, to, to file that election. Absolutely. Yeah, I can, I can see the, the big advantages versus the cloudy, much less generous uh facts and circumstances. OK. Do the 501 H like gene just uh urged you beneath, you even do the 501 H All right. Um So what, where should, so where do you wanna go from from now? The uh the, the, the lobbying uh from, from lobbying? Where should we go? So let’s talk about what’s sort of maybe at the outset say, well, what you can’t do which you alluded to in the beginning. Tony is um you can’t endorse or support a candidate for a public office so you can’t engage in electioneering or public campaign uh political intervention. So none of that is permissible. But what is neither lobbying nor this um political campaign intervention is stuff like making available nonpartisan analysis study or research or examining broad social economic and similar problems if you do it in a nonpartisan manner, but really focusing on the issues. Um You know, if you don’t refer to specific legislation and you want to state your views on whether it be climate change or women’s rights or LGBT Q plus rights or anything, you don’t mention legislation, it’s not lobbying. And if there’s no call to action, it’s not grassroots lobbying. So there’s a lot of things that you can do. And maybe the last exception that I’ll mention and there are many others. But the last one I’ll say is if you’re communicating to a non legislative body, like an executive branch of the president, the mayor, the governor, that is generally not lobbying when it’s, you know, regarding implementation of regulations or policies because those are not done by a legislative body. Those are done by an administrative agency and lobbying has to do with legislation or if you’re sending this information to your constituents. Yeah. Uh a lot of times that may not be lobbying as well when it’s to, to your membership. It’s when you, when we talk about constituents and it gets a little bit iffy about whether that might be grassroots lobbying under the 50 mh expenditure test or just lobbying period. The, the substantial part test, the default test. Oh, so the, so the distinction is whether you have a call to action or, or whether you’re just sending something neutral, like you said, you know, just a report about a subject is that the difference? There is a call to action. Yeah, that’s probably the primary difference. There’s a little bit of differences between when we talk about sending communications to members versus to the general public. But in either case, yeah, if you don’t include a call to action, you’re probably safe and not engaged in lobbying. It’s time for Tony’s take two. Thank you very much, Kate 24 NTC. It’s the 2024 nonprofit technology conference hosted by N 10 and it is next week. I’m very grateful to Heller consulting for sponsoring us at 24 NTC. We’re gonna be sharing a double wide booth with Heller. I’ll be there capturing lots of interviews, but already more than 20 already scheduled. All these smart tech folks but not technical tech folks, right? We all we know this is the conference and certainly the interviews that I capture for us. Not, not over the top tech, not even, not even, not even top tech, just user, user friendly tech. That’s what we talk about. So uh we’ll have all these interviews playing over the coming months from the conference. Uh If you’re gonna be there, I hope you will come see us on the exhibit floor, which they’re calling the archive. No, not the archive. It’s the arcade, not the archive. The archive is in the past. So the arcade forward looking. Uh there’s gonna be, I know there’s ping pong. There’s ski ball. I know I specifically asked about ski ball. You gotta love skee ball. I used to play ski ball with my grandfather, Kate’s great grandfather, uh in Asbury Park, New Jersey, which he used to call Raspberry Park. Lots of stories about Raspberry Park. Anyway, there’s gonna be ski ball, uh in the arcade, um, and others, other games as well. We are gonna be in booths 607 and 609, nonprofit Radio and Heller consulting side by side. All the smart folks at Heller, you know, with their outstanding, um sales force, blackboard Microsoft consulting, they find you the right tech solution because they’re broad in lots of different platforms and then they do the implementation for you. Uh That’s Heller consulting again. Thankful to them for sponsoring us at the conference. Please come by, see us if you’re gonna, if you’re there in Portland, I neglected to say this is all happening next week in Portland, Oregon. Very nice city. I’m gonna spend a couple of extra nights because great, great food scene there with their food trucks. That’s 24 NTC and that is Tony’s take two. Hey, my dad loves ski ball. Every time we go to an arcade it’s always ski ball and like he’ll use my tickets because him and I go off together, he’ll use my tickets to just play ski ball. That’s it. Well, I, I have the origin story for that. I, I assure you, it goes back to our grandfather, grandpa Martinetti, taking us to ski ball back when the balls were made of wood. Yes. And a play was a dime. You put your little dime in dime for, like, I think it was a dime for nine balls. Oh, I wish it was still that. It’s like a dollar now. Oh, my God. Wooden balls. I guess they were not, uh, hypoallergenic like the plastic balls are anyway. But wood balls, I’m sure of it. It was nine plays for a dollar. No, nine plays for a dime. You pull that metal handle back and those wooden balls will come crashing down in a row and then you, then you do your play, try to get, try to get the ball in the center for the maximum points. So that’s why, that’s the story. Why your dad loves ski ball. Well, let’s carry on. What do you say we’ve got vu but loads more time. So let’s return to election year activities with gene decoy. It, it, it’s, it’s a question of doing it also aside from the call to action, doing it in a nonpartisan way, like you said, you know, objective research on an issue, right? Yeah. So, I mean, we can always do this in a partisan way that can now mean that it’s may not be lobbying, but it could be political campaign intervention that 501 CS are not allowed to engage in. So if we like, say, focused on a wedge issue like abortion, let’s say, and we didn’t talk about it, you know, for, for most of the, the, the period of time in question until just before an election. And then we started to talk heavily about that and tell people to, to really, you know, vote with their conscience lies without saying a particular candidate but mentioning abortion rights. Uh uh you know, if, if that was kind of the wedge issue between, you know, candidates and that’s the only time that we brought it up that might be seen as prohibited, you know, political campaign intervention or electioneering. Ok. So now we’re going broader, you know, what’s, what’s your typical communications about this issue? And like you said, if this is your first time and we’re in an election season, it’s, it’s, uh, it’s gonna, that’s gonna weigh against you versus something that you discussed routinely with your constituents. Yeah. And that’s gonna sort of apply to a number of different activities that might ordinarily be done, you know, regularly by an organization. But if it’s not done regularly and it’s only timed with an election, and it’s really the intent was to influence that election by picking a particular wedge issue or highlighting a particular issue just before the election that can get organizations into trouble. Although, again, the IRS enforcement on the whole electioneering issue has been pretty weak. Ok. All valuable. All right. Um You can even host a debate. Right. Yeah, there are definitely charities, 501 c three public charities that are not allowed to engage in electioneering that host candidate debates. Now, they’ve got to organize that in a neutral nonpartisan manner, including inviting all of the viable candidates. Now, not everybody might accept that invitation. And that doesn’t necessarily mean that you can’t hold the debate. But, um, yes, if you do it in a neutral nonpartisan manner, it can be done. And I think, you know, many of us are probably familiar with like the league of women voters. Um and, and others that, that uh organize some of the presidential debate. So it, it is something to, to be aware of that. It, it is a possible thing to do on a local level as well. Ok. Yeah. Right. This all applies locally too. So, I mean, we’re in a presidential year but uh think think broader than just 2024. Ok. OK. Um What, what about uh the, there’s the, there’s an issue around if you criticize the actions of an incumbent that’s running like Joe Biden. Yeah. So, you know, it’s always a little bit tricky when we talk about an incumbent when they’re also running for office. Right. So again, the timing may matter. Um but if we’re criticizing the incumbent based on their actions taken in that capacity, so if we criticize Joe Biden uh on actions he’s taken as president, that’s different from criticizing his stance in areas um which he’s campaigning on or which the other party may be campaigning on in terms of opposing his candidacy. So, yes, you can continue to criticize an incumbent’s action. If you’ve been doing that all along, that really helps if you only time it before the election and it looks like the reason for doing it was to influence that election, then maybe that could cross the line. So you have to think about it in those terms. It becomes a little bit weird too when you have the other candidate who was formerly the president of the United States as well. Right. So are we criticizing him for his actions taken when he was president or has that been so long ago? That that’s not really anything we’re doing other than to influence the coming election. So it gets a little bit dicey when, when, when, when we um look at that um in, in c through a certain lens, but you know, let’s talk not about the Biden Trump um candidacies, but let’s just talk about some local mayor uh or, or, or go, I, I’m sure all of us can criticize the actions of our executive branch officials from time to time um of, of our elected officials in the state. So um yes, um you can continue to criticize them probably again, you, you know, if that criticism was really just part of what is connected with your charity and not just for, for, for, you know, purposes of influencing their candidacy in a, in a later election. And let’s go to the next step. What about somebody who’s the candidate? But you’re hosting them for non candidate nonelection, uh type issues, a conversation, a debate, a panel, let’s say panel is probably more likely. Uh but it doesn’t have to do with their election. They happen to be a candidate. Yeah. So, you know, let’s say it, it was a um I, I’ll just pull out an example. I’m not sure that if I can come up with an actual name here, but let’s say it’s a rocket scientist, right, who happens to be running for office. Um But the charity wants to invite them because they’re a science museum and he has sort of a background in a particular initiative that the science museum has taken. And he is, you know, a very highly recognized person in the public. So that would be a great draw and he can talk intelligently about subject matter at hand, might be every right of that charity, that museum to invite that candidate, not as a candidate, but in, in his rocket scientists capacity to speak to the public and if he’s not talking about the election, um And you’ve got to sort of sometimes when you invite them, you have to talk to them about it because they may not know the 501 C three charity rules and this prohibition against electioneering. So you’ve got to make sure that they don’t speak about their candidacy or the election. Uh And the charity might even want to put a disclaimer up there, you know, when inviting him or, or when introducing him to the, to the uh audience that, hey, we’ve invited this person. Um We are not stating any position on the upcoming election, but we’ve invited him because he’s this, you know, famed rocket scientist and we’d love for him to speak with you about the science on our initiative. So that, that is ok. Ok. Ok. Uh We should probably move to what’s, what’s uh not, not allowed in. Uh Because we, we talked about what, what you can, what you can do as long as you do this on a nonpartisan basis. What, what are some things that are not allowed around the political campaign intervention? Yeah. So here’s um and I’ll speak of it in two ways. So what, what’s allowed and then what makes it wrong? So a voter registration drive or get out the vote drive. Those are really common for charities to do and they a RK unless you’re doing it in a partisan manner, right? So you’re only going out to do the voter registration drive if the voters are, you know, siding with your preferred candidate and if that’s the way you conduct the voter registration drive, then it is partisan political campaign intervention and could cost you your 501 C three status. So that would be prohibited. Same thing with like a candidate questionnaire or voter guide if you designed it or distributed it in a manner that was partisan. So you’re getting the answers that you want and using it as election materials, then that would be prohibited. Political campaign intervention if you had kind of um uh a candidate and you said, you know, we’re going to score you on all of the issues that matter to us. Then that could also be political campaign intervention when you’re just score carding a candidate just timed with the election. Now, that’s different from scorecard, an incumbent, um if it’s not timed with an election, but when you’re scorecard candidates um timed with an election really difficult if you ask a candidate to take a pledge. So you say, hey, pledge to support our environmental platform, even though you’re not saying we’ll support you. If you do that, even without that, that might be enough to say, hey, that’s still electioneering if, even if you, even if you offer that pledge to all the candidates, yeah, even if you offer it to all the candidates because if, if some pledge to back your platform and some pledges will not pledge that, then that’s seen as a message that you’re given to, to people who are looking at that uh that communication that you, you highlight after about who has backed your platform and who hasn’t. It’s kind of seeing as tacitly um uh influencing that election either by, you know, promoting or opposing a particular candidate. I see. Ok. Ok. What else? Uh, what else should we be aware of? So, avoid a big one is for me anyway, is the selective use of space or resources? So, in one sense, you know, a lot of charities will go, well, we don’t allow any of our political candidates or any political candidates to use like our space. So, you know, um, we’re not going to, you know, worry about that. But what if you invited somebody to speak to your, you know, to, to your audience about kind of the issues? And I said it would be ok if they, if they’re not doing it in their other, you know, capacity as a, as an expert in some other area. But what if they were doing it kind of as a candidate? Um, and you allowed them to, you know, to speak on the issues but you didn’t invite others to, to speak on it. That would be problem. And maybe even more of a common problem is one of the assets of a charity are its emails, right? So, if you have, uh, you know, Gene at charity.org, that’s the charity’s email address. You know, it’s my professional email, but it wouldn’t be my email in terms of, I wouldn’t own it if I, you know, if I wasn’t, you know, together with the charity anymore, if individuals who are certainly allowed to engage in, in, you know, supporting endorsing or opposing candidates for political office in their individual capacities. But if they’re using staff email to do it, um that becomes a problem if they’re using staff time or staff events, uh which they use as a platform to engage in their individual sort of first amendment rights to engage in political activity. That’s a problem because they’re using organizational resources, they can do it on their own time. Um And you might see sometimes in newspapers, people will put the name of the organization they’re with, they might even say like their position president of charity X endorsing this candidate. You’ll see there’s going to be an asterisk there that says that the titles and affiliations of the individuals are provided for identification purposes only. So it’s not an endorsement by the organization. So that’s really important to, to make sure that individual staff members or board members are not using organizational resources, including emails uh to engage in political activities that are, that are otherwise prohibited to the charity. How would you judge this one? Let me give you a hypothetical uh uh an employee drives uh a nonprofit vehicle to a rally or a anything where they’re gonna be expressing their political opinion, but use a rally so they drive it, they park it and then they walk a few blocks to the rally. What do you think about that? Can’t do it? I mean, it would be, it would be, again, the IRS rarely enforces this anyway. Um, but it is the law but it would be, it would, you know, it would probably not come to the, the, the charity’s, um, attention. But if it did, they would have to hold the employee accountable for that. So it’s not, you got to terminate somebody but you probably should have a policy that says something like you cannot use organizational resources, including our vehicles, including your email address to support or oppose any candidates for public office. You’ve got to use your own resources in your own time for that. Ok. It’s a resource. I agree. All right. If an email is a resource, then certainly a vehicle would be all right. I just wanted to just, I thought, I thought maybe she parked it a few blocks away. Uh Oh, I thought maybe it might make a difference. It’s time for a break. Virtuous is a software company committed to helping nonprofits grow generosity, virtuous beliefs that generosity has the power to create profound change in the world and in the heart of the giver, it’s their mission to move the needle on global generosity by helping nonprofits better connect with and inspire their givers responsive. Fundraising puts the donor at the center of fundraising and grows giving through personalized donor journeys that respond to the needs of each individual. Virtuous is the only response of nonprofit CRM designed to help you build deeper relationships with every donor at scale. Virtuous, gives you the nonprofit CRM fundraising, volunteer marketing and automation tools. You need to create responsive experiences that build trust and grow, impact virtuous.org. Now back to election year activities, you got some other things that we need to, we need to avoid around the political campaign intervention. Yes, I, you know, I would say another common thing is websites and social media, right? So social media on an organizational sort of account got to be careful, no electioneering on those accounts. So whether it be Twitter or X whatever you want to call it, Facebook, um tiktok, whatever, if it’s the organizational sort of account. Um And you’re promoting the charity uh on it, it’s not your individual account. Um You have to make sure that your individual sort of political endorsements or oppositions are not on that account, are not used on that social media account. On the charity website. There’s kind of this one link rule, meaning that if the charity links to another website, the charity is actually responsible for the content on that other website, not in terms of whether it contains an electioneering message or not. 00, that’s, that’s harsh. So you have to pay attention. So the general idea behind the rule is that, you know, I think any regulator would see past the the the rule of, of saying, hey, we don’t endorse political candidates but link here and this will take you to, you know, one of the political party platforms, right? And not the other. Um So, and they wouldn’t want you to say, oh, you know, that’s just a link that’s not on our page. We just included the link which has no, you know, electioneering message on it. Well, the one link rule would say no, you’re responsible for the content on that other page, but you’re right, it could be harsh because sometimes that link is to a 501 C four organization. Um And that 501 C four organization is allowed to engage in some political campaign activity so long as it’s not their primary activity. But if it goes to the page of the 501 C four that has the political campaign sort of intervention message on it, then the charity could be held responsible for it. And again, that would be a violation of the political campaign intervention rule. All right, now you’re responsible, um You’re responsible for other people’s content when you link to it in this, in this, in this arena, I I would be careful. I would say that there’s probably less likelihood of any enforcement if it’s something that is uh not intended to be an evergreen thing. So if it’s like is like a tweet and that link changes over time, I don’t think anybody is going to go back and say two years ago, you linked to this and now this link contains this electioneering message. I don’t think that’s the way it would be force, but if it’s on your, your sort of active website, uh and the link at the time that you created, you know, that website and, and published it, uh had electioneering messages on it, then I would be a little bit concerned that that would be a violation of the rules. You mentioned, uh you’re explaining about uh employees, you know, and not allowed to use any of the organizational resources. Um What about employees um wearing a hat or a button during, I don’t know, during staff time during an event, staff time, meaning working hours, you know, and they’re in their office doing that, not working, not working hours and they’re, they’re at home but working hours and they’re in their office or it’s an event. Uh and, you know, they’ve got their, they’ve got their election year on. Yes, I think that’s a really sensitive area, right? Because we each have our First Amendment rights and we’re ab absolutely wanna say individually as individuals in our individual capacity, we have every right to endorse or oppose a candidate for public office, every right to do so. Um But I said we shouldn’t use organizational resources to do so. So what happens if you show up? Um And you’re wearing a vote blue or vote red or Mega or whatever hat or t-shirt on and you go to go to work. Um Well, I think to the extent that you are representing the organization at work, especially if you have uh any interface with the public, that would be a reason for a charity employer to say no, that’s in violation of the rules. This isn’t, you know, a violation of your first amendment rights. We’re just saying as an organizational representative to the public or to the public that we’re serving, you cannot send that political message out because that looks like it’s a political message being sent by our charity. So I think that is where you would enforce it and say you can’t do it. Now if they’re at home um on a zoom meeting with other employees, I have a good one. That’s a good one. Yeah, I haven’t seen any guidance on this. I would still feel slightly uncomfortable about it, but I wouldn’t want to have to go to court to fight about that either and I’m not sure that anybody would really care. Um But yeah, what another employee said, no, that, you know, II I didn’t want to see that and that has, you know, traumatized me. Um We’re not, you know, we’re not thinking about election related materials and, you know, does that, you know, give them the same authority to say, you know, everybody of this, you know, particular viewpoint should die on their T shirt. Like that’s a first amendment right to wear, like you could walk out to an amusement park to wear it, I suppose, but Disneyland would probably throw you out and maybe a charity employer would have the right to say no, you can’t wear that on the zoom meeting either. Ok. Ok. Anything else we, we haven’t covered or you wanna cover in more detail, the quadrennial chance? Sure. So, um you know, maybe talking about what is educational like we’re allowed to educate the public if we wanted to educate the public on climate change. Is that ok? Um Yeah, you mentioned, for instance, you mentioned voter guides. Yeah, so you know, we, we could have a voter guide or maybe we’re just having educational materials, just articles um on our website or on our blog. And we, we have promotional activities about that. We hold conferences about it. We do you know seminars or trainings about it. Um Can we do all those things? Um And of course, I think we know the answer is yes, there are a lot of organizations that are, are holding conferences and seminars on climate change. Um But when is it wrong to do that? Um And it’s interesting, I, I think with climate change and the overwhelming scientific opinion that climate change and human uh cause of climate change is, is a real thing. Um that, that’s not an issue, but it once was I once got um asked by the IRS agent who reviewed uh uh an application uh for 501 C three status about an organization sort of uh educational material about climate change. And they said, well, is this a full and fair exposition of all of the facts? Are you considering both sides? Um because that’s what educational means under 501 C three. And I, I didn’t think that was appropriate of that particular IRS agent even back then, but maybe 50 years ago, maybe that would have been a legitimate question when the scientific community wasn’t as aware of those things. And maybe it could be seen as more of a wedge issue between candidates and a reason to promote one candidate over the other based on, you know, opinion rather than supported facts. Um, and so educational activities, um, of course, charities should be, you know, supporting their mission with educational communications out there. If, if it’s going to help them advance their mission, that’s what they should do. And if they aim it at candidates, if they’re aiming it at all candidates, I think that that’s a fair thing to do as well. Now, if you’re aiming certain educational communications only at the candidates that the charity leaders prefer in, in one way or the other, now you may be engaged in sort of, again, this partisan viewpoint. You’re, you’re um providing resources to one candidate and not to others, even though you might think that, well, they’re not going to read it, they’re not going to agree with it anyway, the fact that you’re not giving them the chance to, to use those resources even if to attack them, um, might be seen as preferential and partisan and therefore a violation of 501. C three. Ok. Yep. There again. You, you’re, you’re being biased, you said, you know, partisan, you’re not, you’re not doing it, um, you’re not doing it objectively. You’re not doing it across the board. You’re, you’re being selective. Yeah. I think, you know, 11 other thing I wanted to, to sort of, um, let the audience know about it is that there are other laws besides the 501 c three, sort of tax exemption laws that can apply to lobbying or political activities. Um, and so it may be a matter of taking a look at some of your state or local law resources on lobbying or political activities as well as knowing the tax laws. And there’s one great source right now, um, that was just recently made available in all 50 states and DC. It’s called State Law Resources, nonprofit lobbying. And it’s from the Alliance for Justice Boulder advocacy. So, um, uh, the Alliance for Justice has a 501 C three. They also have a 501 C four organization which we didn’t really talk about too much other than to say that they are allowed to engage in some political campaign intervention activities as long as it’s not their primary activity. Well, there are organizations that have both the 501 C three and a 501 C four organization. They are at arm’s length, but they are affiliated. Alliance for Justice is one of those organizations, but their C three has provided us some great resources, educational resources, nonpartisan that talk about state law, resources on nonprofits, lobbying and go over not only the tax laws that we talked about, but some of the political and election laws that, that apply as well on the state level. Um And again, local laws may also apply. So you just want to check out those resources if you’re going to engage in significant lobbying or political activities. J say the name of that resource again, the title of it. So it’s from the Alliance for Justice and it’s called State Law resources colon, nonprofit lobbying. State law resources, nonprofit lobbying. And there’s a different guide for each state and for, for, for the district of Columbia, you know, we love free resources. Excellent. OK. You feel like we’ve given this sufficient coverage until 2028. Yeah. Uh Other than to say, go out and advocate for your mission. Um And make sure your boards are supporting that advocacy as well. You can do a lot more than you think Gene Takagi there. You have it. You’ll find him at nonprofit law blog, which is nonprofit law blog.com and you’ll find uh him. You’ll find Gene at G Tac Gtak Jean. Thank you so much. Thanks for sharing your wisdom. Thanks, Tony. It’s always great to be on next week. The generational divide. We thought that would be this week, but things don’t always work out as planned if you missed any part of this weeks show. I beseech you find it at Tony martignetti.com. You notice how I have Kate say we thought this would be next week. So kind of kind of makes it sound like it’s her fault. Notice I, I didn’t give the explanation, it’s not her fault but uh notice how I set her up that way. We’re sponsored by donor box. Outdated donation forms blocking your support, generosity. Donor box. Fast, flexible and friendly fundraising forms for your nonprofit donor box.org and by virtuous, virtuous gives you the nonprofit CRM fundraising volunteer and marketing tools. You need to create more responsive donor experiences and grow giving, virtuous.org. Our creative producer is Claire Meyerhoff. I’m your associate producer, Kate Marinetti. The show social media is by Susan Chavez. Mark Silverman is our web guy and this music is by Scott Stein. Thank you for that affirmation. Scotty be with us next week for nonprofit radio. Big nonprofit ideas for the other 95% go out and be great

Nonprofit Radio for February 26, 2024: Your Partnerships With FGWs

 

Esther Choy: Your Partnerships With FGWs

First Generation Wealth creators have different values and mindsets than those who inherited their wealth. And FGWs far outnumber the inheritors. Esther Choy’s research helps you understand these folks and how to build valuable relationships with them. She’s president of Leadership Story Lab. (This originally aired May 17, 2021.)

 

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And welcome to Tony Martignetti nonprofit radio. Big nonprofit ideas for the other 95%. I am your aptly named host and the pod father of your favorite abdominal podcast. Oh, I’m glad you’re with us. I’d be thrown into lateral epicondylitis if you gave me the elbow and told me that you missed this week’s show. Here’s our associate producer, Kate with the highlights. Hey, Tony, this week, it’s your partnerships with F GWS first generation wealth creators have different values and mindsets than those who inherited their wealth. And FGWS far outnumber the inheritors. Ester Choi’s research helps you understand these folks and how to build valuable relationships with them. She’s president of leadership story Lab. This originally aired May 17th 2021 on Tony’s. Take two. Please review we’re sponsored by donor box. Outdated donation forms blocking your supporter generosity. Donor box. Fast, flexible and friendly fundraising forms for your nonprofit donor box.org and by virtuous, virtuous gives you the nonprofit CRM fundraising volunteer and marketing tools. You need to create more responsive donor experiences and grow. Giving. Virtuous.org. Welcome again, virtuous. So grateful for your sponsorship. Here is your partnerships with FGWS. It’s a pleasure to welcome to nonprofit radio, Esther Choi. She is president and chief story facilitator at leadership story lab, teaching storytelling to institutional and individual clients who are searching for more meaningful ways to connect with their audiences. She’s a contributor for Forbes Leadership Strategy Group and you may have seen her quoted in leading media outlets like the New York Times and entrepreneur.com. Her practice is at leader story lab and leadership story lab.com E Choi. Welcome to nonprofit radio. Thank you so much for having me. It’s a real pleasure. Welcome. Um You, you have uh you have some new research out that we need to, we need to talk about transforming partnerships with major donors. What are uh let’s, let’s just jump right in and why don’t you explain what FGW folks are and uh tell us a little about your, the research that you did with these FGW folks. FGW folks. Well, I recently published this research report um and lucky enough to have a really, really good exposure such as the one you mentioned in the New York Times. And there are a lot of surprises about the folks that we generally in the broader society, just, just overly sort of broad and call them the rich people or the wealthy folks or the high net worth individual or the ultra high net worth individuals as if they all belonged in this monolithic group that they all think a belief in the same way. And So I got curious about them after I’ve taught uh in this major Gift strategy program at Kellogg for a while wondering why are these people so hard to get? What uh because so many nonprofits are doing amazing and moving and important and urgent work that no one else is doing. So why is it so hard to reach them? So I dug further in and did a lot of homework and I interviewed 20 very um they were ultra high or folks and I just ask some questions about how did they get to their wealth? What is it like? Um Are there any downsides to wealth, having wealth and so on and so forth and focusing on philanthropy? Um So this report, I can talk about any one number of ways. So you tell me, what do you, what do you want to most learn about these first generation wealth creators? Well, let’s uh let’s start with how big a proportion they are of the, of the wealthy. Wow. I am glad you start. That’s the starting point. Um That’s one of the biggest surprises that I’ve learned because they are at least 68% of the, the, the this massive group that we call wealthy ultra high net worth. They are at least 68% of them earn their wealth instead of inherited. Now, that’s a big, big difference between inherited wealth versus earned wealth. And that means they’ve traveled a entire social economic class that they did not grow up with. And so some of them, um, very few of them really make the majority of their wealth in their thirties or even forties. Most of them are in their fifties and sixties. So we’re talking about full on grown adults with Children and maybe even grandchildren by the time they become, um, this wealthy. So it’s a very interesting transformation of your life, your community, your social circles, the things that you worry about or not worry about all happen around starting from the point of fifties and sixties, right? So, so there are at least two thirds, maybe even a little more than two thirds of all the, all the wealthy folks. The way we would describe, as you’re saying, high net worth, ultra high net worth. These are, these are two thirds of those folks, at least you said 68 68%. I picked the most conservative number, but I’ve read elsewhere to and put that to um somewhere 80 80%. OK? And everybody you interviewed is first generation wealth. That’s, that’s where your research was correct on those folks. OK. So let’s get to know them a little bit. Um Your research has uh AAA nice chart. Um I like, I like pictures. The first thing I look for in books and pictures. Uh Simple, simple mind. You, you’re burdened with the host with a simple mind. Um But you do have these, these pillars of wealth generation that. So let’s describe these folks. Not, not, not all three, I mean, people are just gonna have to get the research, you know, I don’t, I’m not gonna quiz you. I’m not quizzing you on block number four in line three on the No, we’re not doing that. I don’t want to go like word by word because people got to get the research which, which is at Leadership story lab.com, right? That’s the way that you can download. Yeah, there’s an executive summary and you can download the full report as well, right? So Leadership story lab.com for the full thing for the full, for the full study. Um But let’s get to know these folks a little bit, these, these first generation wealth creators. Um you, you start by saying they’re, they’re understated. They’re, they’re maybe even humble. Are they, are they, are they to the point of being humble and modest, humble and modest? And they have a hard time, they have a hard time with the, with the word wealthy, they understand the size of their assets. Um They understand what they are capable of affording, which is basically anything but they have a hard time with the label wealthy. And um they oftentimes think of and regard and never really left their middle class roots and that’s majority of them come from very middle class. You know, they don’t want to be flashy nor do they enjoy flashy things that attract attention So, um, you know, make no mistake. They are a part of things that are very, um, you know, shiny and, and sophisticated and, and, and high quality, but it’s not who they are inside. So that’s one thing to keep in mind is that they are very understated themselves and they often appreciate other people as well as other things that are understated. You, you make the point a couple of times of saying that they don’t, they don’t identify themselves as wealthy even though they know that they fit into that category, correct? Ok. Um So you sat down and you, you met these folks, you, well, maybe not face to face but you, you spoke with these people or couples or how did, how did that all work? Yeah. So I did all the interviews uh with in partnership with the research firm and it’s all done virtually because it was done in 2020. Um There was one noted exception um where I was invited to her home. Uh and uh I met all her kids and her husband and, you know, it’s just like the whole family in the background and it’s kind of funny to talk about her family while her family was around, but for the most part, it was done through Zoom. Uh one through calls and, and um there are four people, so two couples, um I interview them at the same time together and the lengths just got doubled. Um you know, it’s usually 50 50 minutes to an hour and with a couple, um we talked for over an hour and a half. How do you, I’m interested in some of the details. How do you reach out to these folks? How do you, how do you get their attention? It’s really hard. So, the first thing we mentioned in one of the four pillars is they’re understated, right? They don’t identify with the word wealthy. They certainly don’t make big advertisement to the world that they are wealthy. And so to find them and to get them to agree, to speak on record, although it’s anonymous um and to get them to open up and talk about money and wealth, it’s really hard. So I have to rely on a couple of key relationships. Um One is through one of my alma mater, um Texas A and M University and my friend and colleague, uh the CEO of Texas A and M Foundation helped me recruit a few, quite a few of these interviewees. Um my business partner who also happens to be a um uh trustee at the University of Cincinnati Cincinnati Foundations and um through a couple of my own uh resources as well as my research firms. So 20 for qualitative studies is, you know, sufficient. It’s definitely not a lot, 20 people doesn’t sound like a lot but 20 of these type of people and get them to talk about very sensitive topic. Um, was, it took quite a bit just to get them to agree to talk to me. Well, thank you. Um, absolutely. Um, and what was the median income for these 20 folks families? So, um, at this point I don’t think their income is very meaningful any anymore. So, we’re, I, I’m, um, by median, I would refer to their, um, uh, their, their net worth. So the net worth the median range is 50 to 80 million. Um, although, um, the low, I would put it in the low teens, the highs, I would put them in 100 and 50. So just give you, give, you, give our listeners a sense as well of what we’re talking about. Like by, well, you know, millions is like a lot of zeros, you know, at some point it’s just like my mind can’t keep them all in one place. Um, according to the fed in 2020 the top 1% of the US, um, folks have 11 million. So these are all, um, uh, you know, sort of the top one percenter and, um, for the 1% even mid teens to 50 or so was the, was roughly the median net worth. Exactly. Exactly. But then if you think about the 1% of 300 million people in the US, that’s 3 million, 3 million people. And that is about the size. If you put them all in one city, all in one location, they’re just below New York City, just below New York, uh just below Los Angeles, but just above the city of Chicago. So 3 million people, that’s a lot of people. Ok. And, and you estimate conservatively that of those 3 million 68%. Uh our first generation, they earn their wealth versus inherited. It’s time for a break. Open up new cashless in person donation opportunities with donor box live kiosk. The smart way to accept cashless donations. Anywhere, anytime picture this a cash free on site giving solution that effortlessly collects donations from credit cards, debit cards and digital wallets. No team member required. Plus your donation data is automatically synced with your donor box account. No manual data entry or errors make giving a breeze and focus on what matters your cause. Try Donor Box Live kiosk and revolutionize the way you collect donations in 2024. Visit donor box.org to learn more. Now, back to your partnerships with FGWS. Let’s go back to get to know these folks a little bit. Um um They’re entrepreneurial. No surprise but tell us what, what does that mean for the way they think about themselves and the way they might think about uh their philanthropy. Yeah. So in the most literal sense, they are were entrepreneurs. That’s how they created most of them, created their wealth and with a few um less than 20% of them uh had a very lucrative corporate careers and entrepreneurial also means that is the mindset. It’s the lenses in which they apply all things through. Um, so it could be the way that they would like their Children or grandchildren to approach. Um, you know, if I wanted to study abroad even, um, and, you know, I need additional funding. Well, how much you think about it as what untapped opportunities might there be out there for you in this country that you want to study? But it is not currently fully leveraged. Um But entrepreneurial could also means to, as they think about nonprofit, as they really think about how they want to leave their social impact and how they want to fully make sure that their philanthropic dollar is put to good use that also applied and um compatible with their middle class values. So, uh it’s, it’s, it’s, it’s up and downside, right? Um Sometimes something just can’t be measured. Sometimes nonprofits are run by people who are philanthropically minded and socially minded and they don’t necessarily have the same sort of business acumen as, as well as um fear competitiveness um that these donors tend to have and embody. And so the, the downside of having that entrepreneurial mindset is that sometimes it creates um clashes and if you know, at the very least disagreements on is this really the best use of the, the, the, the precious dollars that your organizations have? Um Sometimes there’s no straight black and white answer. Yes and no. Um So um, that’s what I mean by entrepreneurial and, and, and what else, what, what comes next in those four pillars? So, the third is free and I truly, it seems like a very simple, no nonsense. And, and, and we’re like, oh, we live in a free society. Uh, but I think the truth of the matter is that a lot of people aren’t not free, they’re not free to pursue whatever they want. They are under certain professional career obligations or financial pressures and they are a lot of options. Yeah, exactly. And that’s why a lot of career counselors asked mid to even late career folks, you know, what would you do if money is not an issue? Right. Uh, I’ve heard that question asked a lot in care counseling because a lot of people are under that, uh, pressure. But these FGWS they are not and for them it’s oftentimes for the first time is, wow, now it’s not a theoretical questions anymore. I really don’t have to worry about money. Ok. So now what, what do we do? And so, um, a lot of them pursue experiences. A lot of them want the same thing for the Children and grandchildren. Um, they, uh, pursued 3rd, 4th, 5th careers that they’ve always are interested, intrigued by, know that they are not very good at and know that they probably may not, may or may not be able to make a ton of money with. Um, but they do it anyway. So it’s that sense of freedom. Um that I think a lot of people, as long as they have to still worry about saving for retirement saving, for making sure you can pay your mortgage and things like that. It’s, it’s really hard to wrap your mind about. And then these folks are just sort of fully embracing, they want their Children to understand that having a, a wealth of options doesn’t just come, it comes from hard work and, and devotion, which is what they devoted their decades to. So they, they, they want their Children to understand that that doesn’t just happen for everyone. Yeah. I’m glad you bring up Children, um, across all 20 of them, even though the ages ranges from late forties to a few eighties. Um, they all worry about their kids even though their kids have all grown up or they have worried about their kids or have regrets about the way that they raised the ways that they passed on their assets, uh, to their kids. And the, the funny thing is that they did not tell me. Oh, I have so. And so, um, I really can confide in or I know these, uh, uh, professional resources, uh, that I can go to and, um, all of them are just kind of like, I hope I’m doing the right thing. In fact, I know I haven’t done the right thing but then talking to peers surprisingly was not an option across any of them. And so although they’re free, but this taboo topic of money and wealth have prevented them from really searching for the right answers at the time when decisions had to be made. So Children, it’s a constant universal worries, especially for people with wealth. Um We’ve seen from studies after studies that for example, substance abuse tend to affect um Children from families with means disproportionately higher than those who are not from uh family with means. I wonder if there’s some tension for them because they’re not comfortable talking to those who inherited their wealth or, or even just other wealthy people because they don’t, they don’t identify that way, but then they’re not comfortable talking to those folks that they knew when they were struggling in their careers. And before their, their great success, their great financial success would qualify that because success can take lots of d have lots of different levels to it. But before their great financial success, because they, they, they like, they don’t wanna, they don’t want to appear uh overbearing to their non wealthy friends who they know from high school and college and, you know, maybe professional school or, you know, whatever. Uh So they’re, they like caught in the middle, like, they don’t have valuable personal relationships to, to leverage and count on in, in, in times like when they’re questioning what, what to do with Children and, you know, sort of existential questions like that. Yeah. So this is another downside of being entrepreneurial. Um Another way to call someone very entrepreneurial is what you know, he’s, he has a can do spirit, she has a can do spirit. So if you can do, you can do it yourself. You don’t need to count on other people, people to help you, you can pull yourself up by the bootstrap. So uh that’s one and two is again the, the subject of wealth, it tends to be taboo. Um In fact, the Brooking Institute economist Isabel saw Hill made this really apt observation and she said that people rather talked about sex than money and money than class. So first generation wealth creators have travel across classes. And so that makes it really hard for them to say, you know, I don’t know what’s the right way if we do if we travel, is it wrong for us to buy business class or first class? And what are your middle class friends going to say? Oh, poor Tony, poor Esther, you’re struggling with questions like should you trust travel in business versus first class? And it’s not something that a lot of people, first of all empathize with and second of all have the right context to give sound counsels. And what about professional coaches and counselors and whatnot? I didn’t actually cover in a report. I chose to exclude it and just in the in favor of focusing on nonprofit and fundraising. But their experience with uh wealth management advisors are very mixed because it’s an industry that has a lot of conflict of interest. There are some really, really good let us in on something that uh that didn’t make the report. This is great, not proper radio. You gotta let us in on the, on the, on the back story. What uh say a little more about these, the trouble they’ve had the mixed results, mixed results. I’m sure some have been, some results were fine and some relationships are fine but say you a little more about uh what didn’t make the final report there. Um I cut a whole section off just because I think it, it might be detrimental to getting people to read it when it’s beyond a certain length. So this whole section that I cut off was on um how they view advisors, um counselors and, and things like that. And indeed, you know, uh two words to describe the entire section is that it’s very mixed. Um some um have great experience, some on the other end of the extreme is, um they thought the people they interacted with is just uh the advice weren’t very good or too obvious or that again, they can do it themselves. Why do I need to pay you so much money to tell me something I know already. And um, and by the way, that is somewhat parallel to their experience with uh fundraisers. So I don’t want to just put the hammer on um wild advisors and, and, and um tax advisors and whatnot. Um Because this idea that, oh, we know you’re wealthy, we know what you can do with your money, either for the benefit of yourself as well as for me or my organizations that really changed the dynamic of the conversations as well as the services, how services rendered and this to their relative to their expectations. Um So that’s why it’s not very helpful. I think just to come off and um list a bunch of things that they’re not happy with without being able to say what would be helpful. So I just removed the whole section and also in favor of keeping it at readable length. It’s time for Tony’s take two. Thank you, Kate. I’d be grateful if you would rate and review the show on whatever podcast app you’re using. Uh, we’re a little, a little low on reviews, recent, recent reviews, uh and ratings. So I hope you would give it a five stars. Uh Certainly nothing below four, I would think, but five is best five is best. And if you could do a little review, I know it takes a little time, you know, it takes a few minutes. I understand that I’d be grateful if you could rate and review the show wherever fine podcasts are heard, wherever you’re listening, please do. Thank you very much. And that’s Tony’s take two. Don’t forget to rate and review. Now, look at the little jingle, Tony’s take two rate and review Kate. That was a very beautiful jingle. But yeah, don’t be afraid to rate and review and let us know what you’re thinking of the show. Not only, don’t be afraid, please go ahead and do it. Absolutely. Take the next step, go do it, do it. We’ve got book who but loads more time. So let’s return to your partnerships with FGWS, with Esther Choi. All right. Finally, these folks are lone Rangers. What does that mean? Um We touch upon it a little bit where we, um, you know, they are part of this new class of wealth. They’re like immigrants in some way, by the way, I really wanted to recommend a few books. Um Not just mine. Um, that really helped me round out my understanding. So this whole idea of, um, think of first generation wealth creators as immigrants. Um They have migrated from a different class altogether and enter into this world where the beliefs, um the values and oftentimes even language um are foreign to them. And although it’s great, this is paradise, um, they often find that there are uh tricky conditions, some even would say, um because their native born Children and grandchildren, um, don’t understand the privileged privileges that they were born and then they’ve gotten accustomed to. Um, and the, the cliche or the adage or however you want to want to call it, shirt sleeves to shirt sleeves, rice paddies to rice paddies, wealth does not last past three generations and they know that. And so when you think about this special land of paradise again, um by the way, this is a uh I learned it through the book called um uh Strangers In Paradise by James Grutman. Um their native born Children and grandchildren, statistically speaking will be deported back to harsher land where the first generation have migrated from. And um and here’s the kick Tony, I just, I just found it fascinating and this is why I can talk about this, you know, forever and ever mismanagement of their wealth, taxes and inflations and bad investments. All of those are more of and just the natural delusions from, you know, the couple to Children to grandchildren, right? All of those reasons are reasons for wealth not being able to last past three generations, but you will probably, I’ve never found any one cases or example or family where the story basically is. Well, grandpa and grandma gave it all the way to charity and left nothing to us. That’s why we’re poor again. You know, that just doesn’t happen. And so what my II I think what I really want to focus on, I think the opportunities for nonprofit is that what might there be an um different way to think about the conversations that you have with these donors where you help them solve a problem or maybe many problems and then you also help yourself um solve a problem. By the way, I’m getting like, way, way, way. This is a problem when we have no script. I’m getting like way away from the Lone Ranger questions. I bring you back. But that’s all right. But I think I’m getting to the whole thing. No, radio. No, no, you’re not. What you’re saying is still valuable. Don’t, don’t second guess yourself. What I, what I’m getting at is that it’s lonely to be first. It can be lonely to be first generation immigrant. Except that most immigrants have somehow found other immigrants. And they talk, they share notes, they commiserate, they help each other out. But um first generation wealth creators are particular type of immigrants where for all the reasons that we’ve talked about, they don’t actively look for help nor was real quality help. Um Readily available. Interesting, really fascinating analogy analogizing to, to immigrants. Um Did you, did you put any of them together? Uh uh uh since you met 20 of them and got to know them. So these folks that are uh feeling, lone, feeling, lone, I don’t know, lonely. I’m, I’m just using a word. I’m not saying they’re lonely in their lives. Maybe they are, but they’re lone rangers. Did you, did you uh put any of these folks together and say, look, you know, I met, I met so and so like 22 or three weeks ago and she was saying the same thing that you’re saying, you know, why don’t the two of you talk or would you be interested? You know, did you put any folks together to help them, uh, commiserate, at least help, maybe at best, help each other. I, I, I think I would, I would if I were asked but with these 20 because of the promise of confidentiality, um I don’t share their names or contacts with anyone. But um I have done uh webinars since then where I was asked. So how do you find these people? And then if, if they ask me, then I will help? OK. OK. Well, I’m like a connector. So I was thinking, you know, if I could get her permission, would you like to talk to her? Because the two of you are saying things that are really identical and maybe together you could help each other as well as having very similar questions. And this is where I was getting at the opportunity part. Um because they have asked questions like how much and when should I pass my asset to my kids and grandkids? It’s dealt with by um with wealth advisors on a very case, by case basis. And I think that should be, that’s the way it should be done. But what’s really sorely missing is, well, how do other families handle this right to your questions of? Well, there are other people like me, what do they do because they’re in my boat. Um So as well as questions like, how do I get in sync with my spouse? Um And then they also have questions on like, how do you truly vet um a non, a non for profit, you know, and how do you help? Not my, you know, the nonprofits that you support, uh become more efficient and they are aware that not coming off as because I’m a donor, I give money and um you should do what I tell you to do um Things like that, you know, that productive relationship with nonprofits. So there are endless questions like this that they can talk about, not just commiserate, although commiserating is, is great too. All right. I don’t know. I think you could be a connector, a major connector. Um And I notice uh I’ll leave that there. That’s, but, you know, the title of your research is transforming partnerships with major donors. So, so let’s, let’s let’s transition to some of those opportunities you talked about problem solving that could be mutually beneficial. How, how do, how would a fundraiser ceo uh uh approach someone with that with, with that kind of opportunity? Yeah. Yeah. So I want to break it down to um three steps. Um I want 123, a three step process. OK. Yeah. Well, yeah. OK. You can call it a three step process, but I didn’t invent it. You made it up. I think the first thing is you have to really think about the questions you asked them. And uh oftentimes how curious, how respectful for how informed you are, are all sussed out by the kind of questions you asked? Are your questions mostly really at the end of the day self serving? Um Or are you only focusing on a very narrow aspects of the donors? Um or are you really broadly interested in problem solving? Now, here’s another thing that entrepreneurs like to do, they like to solve problems. And oftentimes they take the same mindset towards nonprofit, am I really giving to an organization that are going to solve real major problems in the system uh system for way? Um So that’s the first thing is the questions that you ask and then two is reading once you really find out about uh uh you know, what you could learn from the donors is that really being able to pair what your nonprofits have to offer and that structure in a way as well as well as frame it in a way that um fits the mindset of. Um Well, oftentimes the folks are very busy, they know they need to do something but they’re very busy. So, um how is it, uh how do you make it easy for them, in other words? And then um the last thing I would say is um it would um how do you acknowledge them? Right. Um It sounds really obvious, right? You know, their stewardship program, there are people were involved in, uh, thanking donors. But what I’ve found is that people, uh, people thought there’s not enough. Thank you, or there’s too much. Thank you. And they’re not thank through the right medium. And so, uh, we’re not talking about, you know, $10.20 dollars where there are maybe hundreds and thousands of them and you can’t manage them one by one and customized it. But with major donors, it’s absolutely worth it to make sure that it’s customized to their preference and needs. So questions the way that you frame as well as the acknowledgment part. It’s time for a break. Virtuous is a software company committed to helping nonprofits grow generosity. Virtuous believes that generosity has the power to create profound change in the world and in the heart of the giver, it’s their mission to move the needle on global generosity by helping nonprofits better connect with and inspire their givers. Responsive fundraising puts the donor at the center of fundraising and grows giving through personalized donor journeys that respond to the needs of each individual. Virtuous is the only responsive nonprofit CRM designed to help you build deeper relationships with each donor at scale. Virtuous. Gives you the nonprofit CRM fundraising, volunteer marketing and automation tools. You need to create responsive experiences that build trust and grow, impact virtuous.org. Now, back to your partnerships with FGWS and the, the acknowledgment of the stewardship is interesting um you say somewhere that uh the the they these folks have a hard time understanding uh the name on a building, you know, why that, why people find that appealing, why some donors find that appealing? So, so a brick and mortar in fundraising, you know, was a brick and mortar recognition would not necessarily be appealing to them, but, but finding out what is appealing comes from, you know, maybe this, this three steps is sort of iterative, right? And if you’re starting to get near uh near something promising, you wanna, you wanna be finding out too about what they would like in terms of acknowledgment. Yeah. Yeah. How would you like to be recognized? What’s important to you? So, I have a friend of mine who advised nonprofits with operations like this and um she helped one of them, she said, you know, what, why don’t you just, why don’t you just ask? So he did, he created a survey through Survey Monkey and, you know, they, they have more than a handful so they can’t just call them up and ask them individually. So he created AAA survey and he got over 70% response rate, which is really, really good, right? If you work for, for survey and um so the the survey basically center around 33 things. Um How would you like to be thanked? How often would you like to be thanked? And through which medium do you most prefer to be thanked. And it’s not only do they have really good feedback, but it’s such a positive gesture from the nonprofit to the donors saying, hey, we actually admit we don’t know, but we care and we should, we know what we don’t know and we care. And now we really would like to learn more from our donors. And that truly is a practical helpful informative donor centric step to take. And by the way, her name is Lisa Greer. She also has a incredibly helpful book called Philanthropy Um Revolutions. So it’s a mix of um it’s a mix of memoir. It’s a mix of uh research because she told her story, but she also has interviewed over 100 principal gift level donors and um and uh and the last mix of how tos so super helpful. How does Lisa spell her last name? GRE er Lisa Greer? What else? What else can you tell us Esther uh that uh in terms of approaching these folks? Um Ho how might you get? Uh I have a question for, I have a little more specific question. How about you get their attention? Oh, yeah, I know um getting the first meeting, it’s like 50 or 60 or I don’t know, 70% of the work just being able to get in the call. Um I, I think everything matters in the smallest amount of space, which is if you have no other ways to reach them. What do. Most people do emails and so make sure that your subject line is the most attention grabbing as well as intriguing possible. Um way to, to get people’s attention, by the way I have um I don’t know if I can memorize uh the, the, the four persona um off the top of my head. Oh, actually I do. I have it right in front of me. Um, my uh colleague, Scott Mord. Um, he is the longest serving CEO of YPO Global young president’s organizations. So these are a lot of the highly concentrated um first generation wealth um around the world, 30,000 of them around the world. Um He actually put the, their philanthropic tendencies in four ways. Um The idealist is the first one. Those are the ones that who want to make a true impact, uh long lasting impact, solve societal problem. Another one is called the legacy leader. Those are the one who really loves to leave, make sure their name last generations and generations that they are getting credit for the big impact that they made. The third one is called the model citizens. And those are the ones that look around and understand what is the highest and highest of highest level of service and they want to be there. And the philanthropic effort reflects that. And then the fourth one is called the Busy Big Week. That’s the ones who are busy, extremely busy and yet they know they should do something but they don’t know what and how and so back to your questions of how do you get their attention? I think you should first by starting with having a point of view of, of these four possibilities, which one is this person most likely going to be? And then once you have a persona in mind, then is a lot easier for you to craft a message with a subject line that is most intriguing and attention grabbing for you. I, I get, despite what my clients and friends and colleagues know about me, I still get these extremely bland and generic um email messages that are, you know, if you just replace the logo of the nonprofits that would fit anybody at all. And so, uh that would be the first thing I think about is have a persona in mind, even if you’re wrong, it’s ok, even if you’re wrong, at least you have a point of view about that person. But the upside is that even if you’re not 100% right? Just having the personal, that persona is going to help you speak to that person as if you know a lot about them already. Are you really only gonna get to them through an introduction or like if somebody has to give you their email or, I mean, there’s not a directory of first generation wealth creators. Is there now, I know yours was yours was anonymous but is there I don’t know. Is there a directory or something? And that’s a really interesting question is what I major in a really, really interesting question. I love the way you think about things Tony. Um, not only is, isn’t there one? Um, they really know how to, how to hide their wealth. You know, they believe in stealth wealth, not only because of the way they live their lives, but they know how to put things in all things and trust. And so everything comes through a different name and um data can help um the right kind of data and data enriching as well as data matching. Um It, I I don’t know a ton about it, but I know enough because there’s another company that I co-founded that like that’s all we do because in the old ways, how do you get names of donors? Right? You ask, you’re bored, that’s how you start a small organization starts. But um but then now, I mean, now we have social media and you can have a campaign and see who gives to that. And then you, then you do some research on those folks to see who, who might be uh have the capacity to do more and then you expand your relationship even with the others who may not have capacity but a willingness. But see, I I think there’s a lot in your current database that is not being fully utilized. That may be for some folks. Yeah, and, uh, well, because we’re talking about stealth wealth. I mean, yeah, that’s, that’s certainly possible. I mean, these, these folks live modest, live, modest means. I mean, uh, uh, at least outward. Um, I mean, what, 20 years ago there was the book The Millionaire next door. I mean, that’s essentially what we’re talking about. This is, there are more zeros now and there are more of them and we’re, we’re in a more financially mobile society now than we were 20 years ago. But the, the, the concept is the same that there are these hidden families of wealth that, uh, that are may very well be in your database. You know, then it was the, the millionaire next door. Now the millionaire in your, it’s the ultra high net worth in your database. Yeah. Yeah. And, and when you, you know, go back to the questions, the way that you ask questions of when you have an opportunity to talk to a donor directly, as well as the way that you ask questions about your databases that can really help you look for hidden millionaires billionaires right in front of you, right in front of your eyes. I wouldn’t be surprised that there are already, uh, but you aren’t, you, you’re not even aware that you’re pretty close when Lisa and I, um because of our share passion about this topic and she’s really doing it full time. I’m doing this. This is because this is my baby. Uh you know, the first time she wanted to make a principal gift um to um her local hospital. Um she budgeted for $2 million for um her hospital and it took the hospital seven months to pay attention to her and $2 million isn’t a small amount for that hospital. It is definitely a major amount, latent unconscious sexism. I’ve, I’ve heard this from women. I do plan to giving fundraising, but I’ve heard this many times from women just ignored when they, they made explicit overtures, not just subtle hints but explicit overtures. You know, I want to do this. I wanna remember the organization in my estate plan and, you know, ignored, repeatedly ignored. So, unfortunately, what you’re describing your friend Lisa’s uh I, I don’t think it’s so uncommon. I think it’s, I think there’s some, I think there’s just unconscious latent sexual uh um not sexuality. Uh sexism in uh yeah, in uh in, in, in, in fundraising. It’s, and money is left on the table as a result. I mean, aside from the morality of the uh of the, of that, that misunderstanding. Yeah. Yeah. So, so it’s, I haven’t seen quantitative research on just how frequently that happened, but that’s leases from her research from her personal experience from your experience. So I think there are actually plenty of money within reach of nonprofits that they probably have missed, but they didn’t know they have, we’re gonna leave it there. It’s perfect. Now you have opportunities and uh I know that our conversation has uh stimulated thinking about how to find these folks and how to transform your partnership with them. Esther Choi the, the research is transforming partnerships with major donors. I’ll give you the full title. Aligning the key values of first generation wealth creators and fundraisers in the age of winner takes all you get the research at leadership story lab.com. That’s where Esther’s company is. Leadership story lab and also at Leader Story lab, Ether Troy. I want to thank you very much. Thank you. This is such an invading conversation. Thank you for the opportunity and thanks for saying you were glad that I asked a question. You were one of the generous, generous guests. I’m glad you asked that. Oh, I got, I got chills. Thank you, Esther. Next week, publish your book, Thought Leader and you can blame me here. I thought that was gonna be this week’s show. I blundered just had it wrong. You, you, you’d think more attention would go into these things, but uh made a mistake. Definitely, it will be next week’s show uh short of uh natural disaster or illness or death. Uh It’ll be next week’s show if you missed any part of this week’s show, I do beseech you find it at Tony martignetti.com were sponsored by donor box, outdated donation forms, blocking your supporters, generosity, donor box, fast, flexible and friendly fundraising forms for your nonprofit donor box.org. Love that alliteration. Love it. Pass flexible, friendly fundraising forms. All right. Sorry, I just had to get that in and by virtuous, virtuous gives you the nonprofit CRM fundraising, volunteer and marketing tools. You need to create more responsive donor experiences and grow giving. Virtuous.org. Our creative producer is Claire Meyerhoff. I’m your associate producer, Kate Martinetti. The show Social Media is by Susan Chavez and Park Silverman is our web guy and this music is by Scott Stein. Thank you for that affirmation. Scotty be with us next week for nonprofit radio. Big nonprofit ideas for the other 95% go out and be great.

Nonprofit Radio for February 19, 2024: Frustrations & Opportunities With Jay Frost

 

Jay FrostFrustrations & Opportunities With Jay Frost

Jay returns to share his reflections on four decades in the nonprofit community. There are things he’d like to see us doing better, that the sector has been talking about for many years. But they haven’t changed much. Yet he remains optimistic, so he recognizes the brighter future that’s possible if we practice more of what we preach. Jay is on LinkedIn.

 

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Welcome to Tony Martignetti nonprofit Radio. Big nonprofit ideas for the other 95%. I’m your aptly named host and the pod father of your favorite abdominal podcast. We have a new sponsor. Welcome. Virtuous to the nonprofit radio family. So glad to have you. I’m grateful for your sponsorship. Welcome. Oh, I’m glad you’re with us. I’d get slapped with a diagnosis of irises if I saw that you missed this week’s show. Here’s our associate producer, Kate with what’s going on this week? Hey, Tony, we’ve got frustrations and opportunities. Jay Frost returns to share his reflections on four decades in the nonprofit community. There are things he’d like to see us doing better that the sector has been talking about for many years, but they haven’t changed much yet. He remains optimistic so he recognizes the brighter future. That’s possible if we practice more of what we preach on Tonys take two last chance were sponsored by donor box, outdated donation forms, blocking your supports, generosity, donor box, fast, flexible and friendly fundraising forms for your nonprofit donor box.org. And by virtuous, virtuous gives you the nonprofit CRM fundraising, volunteer and marketing tools you need to create more responsive donor experiences and grow, giving, virtuous.org. Thank you again for your new sponsorship. Virtuous. Welcome. Anyway, here is frustrations and opportunities. It’s a genuine pleasure to welcome Jay Frost back to nonprofit radio. Jay has worked in the nonprofit community since 1985. That’s 39 years. Let’s call it 40 years between friends. He’s been a grant writer, fundraiser service provider and now he’s a consultant and content creator. You’ll find Jay on linkedin and he hosts Donor Searches Philanthropy. Masterminds series. Welcome back, Jay. It’s good to see you. It is always great to see you, Tony. We talk a lot on the Masterminds series. You’ve hosted me there probably by mistake or, or you had last minute cancellations. Uh I don’t know, three or four times. I’ve been on a bunch of times. I think you’re a popular guy. I, I like to draw a crowd. I, I like to think I draw a crowd but, but we’re focused on you today. The crowd that you draw, the thinking that you have the wisdom of let’s call it 40 years, 40 years in philanthropy. What does that feel like? What does it feel like to have done something? 40 years? Who, when you say the number over and over and now so far it’s 100 and 20. Uh I I it, it uh it, it really, it really makes me feel old Tony. So, thank you. Um But, ok, so there’s a line from Mary Oliver that I want to quote because it’s what I’m thinking about a lot, which is that, um, when it’s over, I don’t want to wonder if I’ve made of my life something particular and real. I don’t want to end up simply having visited this world. So that’s what I’m thinking about these days. And, uh, and it’s a good place to think about it. Right. I mean, we have a lot of fun in our world, especially when I’m hanging out with, with a friend like you. Um, but it’s serious stuff too. And when you say 40 years, 40 years, 40 years, the first thing I think of is, oh, my gosh. I’m just getting started for, well, first of all, it’s not additive. So it’s, it’s not 100 and 20. So, uh, it was, it was keep you with your 40. Let’s not get carried away. Don’t get a big hit. Um, no, but, you know, uh, well, I like the, I like the idea of not, not simply visiting our world. Yeah. Thank you. Thank you for sharing that. Um, what was your very, very, very first job? Was it the grant writing job or? Very, very, very first job in, in nonprofits? Oh, my gosh. Ok. So, first I wanted to be in the film business. I went out to LA. I lived in a garage. I didn’t have a car. I took buses, you know, you don’t do any of that in L A and I did all those things and that’s why I left. So I was there for a brief time, came back tail between my legs to Washington DC where my parents then had, had uh moved and I was introduced to a person at the National Endowment for the Arts. And very quickly, somehow miraculously got a job there as what was called a floater, which is back when people typed stuff and printed stuff, I was running around just doing all those odd jobs at the National Endowment for the Arts. And it was the dream for me because I was raised to study poetry and music and all these other things. So the ne A it was the citadel of all those things. And so very quickly, I, I had the opportunity to work in the inter arts program which was very interesting and controversial place. What program inter arts which is introduced plenty of arts work and um lots of controversy there. And then I worked at the literature program which also had a share of controversy, but that’s where I had a chance to as a 24 year old identify poets who would then be reviewing manuscripts from all the people, writing poetry and fiction and so forth around the country to review it and make investments in writers. I mean, it was, that was my first job. I was 24 I had $2 million in grants responsibility but, but uh I was not making the decisions. I was administering that work. But still, since nobody else really knew a heck of a lot about poetry then or now it meant that I got to be in this candy store of being with people who cared about words and their, and their impact. And that was 1985. That was, yeah, I was, I got there at 85. I was there through just a brief time through 87. Yeah. What happened in what, what happened in uh Hollywood, Los Angeles filmmaking? Oh man. Uh well, you know, you can only live so long on patty melt sandwiches served to you from behind a plexiglass screen for cash um working across in the Kit Kat Club in a theater that’s closed most of the time. Uh I I that was, that was my life, you know, occasionally getting into 50 bucks in the Kit Kat Club. You could have been a, oh my God, you could have been a floater instead of a floater. It could have been many things on that street with Santa Monica Boulevard in the eighties. Yeah, it was an interesting place. Um Alright, but it didn’t go, it just you didn’t take off. No, I did not take off. I had the opportunity to write some uh some scripts for things that probably didn’t need the scripts. Um and I decided not to do that over Christmas vacation. Looking in the mirror. Um, and then was able to rededicate myself to things that have, you know, aesthetic value. I see. All right. Oh, this sounds like a conversation that we should continue over a beer at a conference, uh, on a, on a Friday night. All right. All right. But, yeah, it’s fascinating. Yeah, absolutely. Uh, so let’s turn to, uh, your thinking. I mean, I, I invited you on to, to share your thoughts about our, our community. You have 40 years to reflect over. You’ve seen the things we’ve emphasized over 40 years, the things we’ve accomplished not accomplished. What uh what strikes you first? Wow. It’s a lot of it that occurs to me first are the kinds of things that you and I have chatted about um over the transom every time we’ve, we’ve talked a lot of the petty frustrations that kind of, you know, gnaw at you. Um The things that we laugh over such as uh such as, you know, um why don’t organizations we know, do the things that they should do that are relatively easy to do um such as, uh you know, send out a personal thank you note once in a while. And then we get into all these debates about whether or not people should write thank you notes, whether they’re vestiges of the past, whether they’re too elitist, there are other terms that are less polite for doing this kind of thing. But the, but the thing that really drives me bananas about all that is that it focuses on a tiny, tiny sliver of activity. Uh instead of thinking about the whole, where we can say, what is it that we’re here to do? What is it we’re trying to address what are the best ways of engaging with people who believe in the same things we do, making sure so that they know that we see them, that we hear them, that we know that they’re human and they’re valuable and then we truly partner with them to get things done. Instead, we’ve divided all this stuff up and these little uh actions and then half the time we ignore some of those things to do and I’ve been guilty of it too. I’m not going to sit here and pretend that that I haven’t failed at almost everything because I have. But rather that once we learn these things, I’d like to think that we could put some of them into practice. And I have seen best practices over 40 years. So if we could just pull them together, sort of like our own little mini Bible and actually practice that stuff. I think we could have better partnerships, better friendships and be better trusted and then have better results. Let, let’s take off a few of the things that uh you’re talking about these, these small things that uh accumulate into better, better relationships. What you’re saying, stronger relationships, longer, more devoted donors pick off a few things that pick you off. Yeah, I took some notes so I wouldn’t forget. Um So what are these are so reverential to you? So I have to take notes to you that you have to write them down to remember. Ok, there are two levels here. So what we’re talking about first actually are kind of the appetizers of a conversation like this. They’re the annoyances, right? So those are the things we mess up that we can control for if we thought they were important. So it’s treating donors like ATM machines. This has become a common phrase now. Uh But uh but I think I’ve been saying it for a long time, I’m sure you have to and it’s not just because we see other people doing it and we say tis tis you should do what I say and not what I do. No, it’s because as donors, we experience this, we wonder what in the world is going on here. We make it donation and then we don’t hear from anybody or we get a digital receipt and they think that’s enough. It’s never enough. So uh just one practical example. And I think I’ve told you this before. Um off offline is that I started giving to an organization that this was two years ago now. So it was in the middle of the pandemic uh based on a book and a movie that I thought was just so powerful emotionally wrenching. And so I won’t mention the name of the organization because what I’m about to say suggests that they, that they are not taking care of their donors. And I’m hoping that what I’m going to tell you is isolated, although I fear it’s not. And I know it’s also true for many organizations that is it. I saw this powerful story. I’m really engaged. It’s a way to help people who are getting out of the prison, industrial complex. It is a big deal. We have more prisoners in this country than anywhere else on earth. And so, uh what do we do for these people when they get out? Well, pretty much nothing. Their life is almost over unless they’re lucky or they happen to live in a state with a program for that. I mean, it’s just awful on every level. So, wouldn’t it be great to help out? So I start giving an amount every month, which for me was a fair amount every month. Um And, and even though it’s not a lot of money, I knew it was probably putting in the top like five or 10% of donor pool just because of the stuff we know from fundraising. And so they keep, you know, sending me the kind of the notes uh via email that say dear friend. So I made a point of calling at one point just to say, you know, I’m doing this. They didn’t call me back and then at the end of the year I stopped giving, I thought, well, let’s see what happens. Not because I don’t care. But I was hoping that this would be kind of jarring and they do something and then I’d have a discussion not trying to get business, just trying to say, hey, I’m not special. There must be a lot of people like me silence every once in a while. I’ll get a note from the organization saying, dear friend asking me to give, not even mentioning my past giving. Now this all sounds pretty petty on my part. But the reason I’m mentioning it is because I think it’s just emblematic of a larger problem. Um On the one hand, we don’t have a lot of time in this world, fundraisers just don’t have a lot of time. We’re, we’re, you know, we got a lot to do, we aren’t particularly well paid to do it and we’re doing it out of love. All of those things are true. We don’t often have a lot of support staff. We don’t have a lot of great resources. It’s all true. But then there’s what we do with our time. And if there’s not, I don’t know that there’s anything more important than saying to people who believe in the same things we do that I see you and you’re important and this is important to do together. And I, and I know that organizations can do it and they’ve done it very well in some places, but somehow in the nonprofit industrial complex, we’ve forgotten a little bit of that. And I’m not sure that some of the new technology is, is helping us to become more human. I think sometimes it just relieves us of this nagging responsibility to, to have those little personal engagements that make this work so personally rewarding and so financially successful. It’s time for a break. Open up new cashless in-person donation opportunities with donor box live kiosk, the smart way to accept cashless donations. Anywhere, anytime picture this a cash free on site giving solution that effortlessly collects donations from credit cards, debit cards and digital wallets. No team member required. Plus your donation data is automatically synced with your donor box account. No manual data, entry or errors, make giving a breeze and focus on what matters your cause. Try Donor Box live kiosk and revolutionize the way you collect donations in 2024. Visit donor box.org to learn more. Now, back to frustrations and opportunities. Well, the promise of artificial intelligence is that it’s going to free us up for, for all the things that you’re talking about. So we’re gonna be better to our donors because we’re gonna relieve ourselves of the mundane writing tasks. Uh I think it’s mostly right. I’m gonna use that as the example. That’s what I see the most, you know, the the writing tasks, whether it’s annual report or a 200 word article or whatever, you know, and that’s gonna, the promise is that it’s going to give us time for the, for the human relationships and in my, uh, now we’re on Tony Martignetti s frustrations that, that sounds familiar. It’s a good show. I, I think the, I think the smartphone was supposed to do that for us too. Yeah. And I wonder if the telephone was supposed to have done that in the, I don’t know, 19 tens or I might be off on when, when that was became a widespread technology. But I think I’ve heard this promise before that we’re going to have more time for other activities and, uh, the promise hasn’t been realized in my mind. Right. Yeah. No, I, not only do I agree with you but I think it’s, it’s going back to what I was trying to get to, which is that this is a symptom of a larger issue and the technology it is, seems like a patch on this big tire that we’ve created to try and drive down this road of social change and, and it’s good. I mean, I, I’m all about tech because tech is, is awesome and we really can use it for good. Um, but at the same time if we’re using it as a patch to just keep driving down the same road in the same ways, it doesn’t necessarily serve the purpose. Um, so I’d like to think that if we can go back to what it is that’s supposed to be guiding us. What is the principle behind this work? You know, keep that in mind all the time, keep it up on our wall and look at it all the time. Then hopefully we’ll be doing the more human things. Um There’s a book written years ago by Robert Putnam, you know, Bowling Alone. And the reason I’m mentioning it here is because this concept about uh this kind of fracturing of society where we don’t know each other as well has been potentially exacerbated by some of these technologies, not because of the technologies themselves, but how we use them to avoid actual interaction with one another. And I think that the nonprofit sector and fundraisers specifically not only have potentially a responsibility to do something about that, but it’s more of an opportunity to do something about it that we could decide every time we employ a technology or a technique um that we can use that in order to get closer to people instead of just to mechanize and uh efficient and make more efficient our work because I know what we’re trying to do is get more money. But what we really need to do is build stronger connections in order to get that money, be mindful of your use of the technology. I mean, if, if, if it does, in fact, if artificial intelligence does, in fact relieve you from the, the drudgery of writing your annual report then what are you gonna do with those extra 15 hours that you saved? Because nobody’s gonna tap you on the shoulder and say you’ve got 15 free hours. Now, what are you, how are you going to use the time that the A I saved you? You’re, you’re boasting over coffee. Whoa, the writing, the annual report was so easy this year? Ok. What did you do with the quote surplus time that the, the A I uh allowed you? Did you, did you make more donor calls? Did you have more donor meetings? Did you write more handwrit notes? Did you uh pick up the phone to somebody you haven’t talked to in a, in a while? And this implication, this leads over into the personal too, not only the professional, but you and I are talking about fundraising and fundraisers. So I’ll, I’ll keep it there but use that time consciously if you feel A I is or some other technology has relieved you of a burden. How do you use the new time that, that you used to uh devote to that burden? But, but we kind of forget then about those other things that we can do because if we’re all then trained to engage with one another in these almost mechanized ways like by text and I use text all the time like we all do. But if, then that’s what we’re used to. How comfortable does it feel to just call somebody. So every once in a while I’ll do this, I’ll just grab a number on my phone of somebody I haven’t talked to for a long time and just call them up. And it’s almost shocking because we’re all now so used to communicating in this other way that to do that other thing, sometimes it can be refreshing but sometimes it can be off putting because we’re not accustomed to it. And I, and I, and if that’s true in the personal world, I know it’s also true in this professional world, you, you feel like it’s off putting, I find it more refreshing, then off putting it, you can mean off putting to yourself or to the person receiving the call to the person, receiving the call. And I’m not suggesting we don’t call. I’m saying the opposite. I’m just saying that I think people have become used to a certain kind of thing. And so this new thing, some people do find it refreshing like you and I do. But other people just, they don’t know what make of it. Like, why is this happening? Why is this thing happening? We have to do that. We have to break up that thing and, and do those things to, to engage with people in these ways to make it more human. I, I think my experience is, you know, I I’m working in Planned Giving. So I’m usually talking to people who are 70 80 90. And there’s one woman who’s 100 and one and one who was 100 until she died recently, they grew up with handwrit notes and then they had decades and decades of phone conversations before we went virtual that many decades, like 4050 decades of, oh, no, 40 or 50 years of, uh, phone calls. So to them, uh, a phone call is very thoughtful. A handwrit note is even more thoughtful as the recipients of those. And I, you know, I, I think, um, I think when you do more than what’s typical, I think it’s more refreshing to the recipient than it is off putting. So I guess I’m pushing back a little bit. You know, I, I would and I know you’re not discouraging folks from doing the extra, you know, look, customer service is, um, I have a recurring show that I, uh, replay called Zombie Loyalists with a, a marketing and, uh, pr guy named Peter Shankman and he says, well, he said years ago when he was first on the show and I’ve replayed it many times since then, you know, the average, but it remains true, the standard of customer service is crap. So if you could just be a little above crap, you’re setting yourself apart. So just don’t, just don’t do crap. Yeah, I absolutely agree. You know, whatever it looks, whatever, taking an extra step looks like for you and your donors do it because you’ve got this, uh a surplus time theoretically from the, from the, from the technologies that we, that are, that are saving us so much. But if you do find you have extra time, um, use it, you know, use it consciously. That’s, that’s kind of what I was getting to is, you know, conscious use of time. Yeah, I absolutely agree. And I use off putting that as the way I feel about it but as how some people react even to the idea of doing it. Um It’s, it’s funny though because in talking about these things and you, you’re going through the idea about people who were used to handwrit notes of a certain age than people used to phone calls. And if you talk to people who are maybe of the successive generation, they might say, well, we don’t do these things or people in this age group, they make assumptions, they don’t do these things. But in fact, if we go on to Twitch right now and we see a Twitch streamer who’s raising money for, you know, pick your cause, it might be Saint Judes. It might be something we know as well. What are they doing? They’re engaging with people live right now. They’re talking to them. They’re, they’re um they’re doing that through the chat. They’re engaging with people in a meeting that makes sense for them today. But the reason why I mentioned this is, it’s not about the tech that’s just today’s tech, they’re really engaging with people so anything we can do to properly engage with people, uh, I think is that is exactly what we should be doing. And I, and I, and once again I don’t think it is off-putting. I just think that’s the objection. I think what we really need to do is bring things up a little to, to be better than the boring to go back to your point. Yeah. Oh, I see. You’re, you’re concerned. Yeah, I see what you’re expressing that people might be put off. No, I think people will be uh elated. You know, I write a lot of handwrit notes and not surprising that I get a fair amount of handwrit notes back. But again, I’m writing to older folks. 70 plus, it’s time for Tony’s steak to do. Thank you, Kate. This is the last Chance for Planned Giving Accelerator. The last few weeks. The class starts in early March. If Planned Giving is on your to do list, you wanna launch it. Your board has talked about it. You’ve been thinking about it. I can help you in Planned Giving Accelerator Guide. You step by step week after week, how to launch Planned Giving at your nonprofit. Of course, there’s the incredible peer support too. Besides what you learned from me. Lots of cross talk. We, we set this up as zoom meetings, not webinars, so you can talk to each other. Folks get to know each other. Share successes, frustrations uh help each other. That, that part has been much more uh than I than I expected the, the, the peer support. So there’s all that if you’re interested, the info is at Planned Giving accelerator.com. If you use code nonprofit Radio, 1500 you can claim $1500 off the tuition. It’s all at Planned Giving accelerator.com and that is Tony take two. Hey, I hope people join in the class. Thank you. We’ve got just about a butt load more time. Let’s return to frustrations and opportunities with Jay Frost. What you’re espousing is be relational, not transactional, but that’s something that we’ve been talking about for 20 years. Donor centric. How long about 15 years we’ve been talking about being donor centric. Do you feel like we’ve improved? II I, I’m not experiencing it when you give, when you leave the prison. The prison charity is, hasn’t heard about donor centrism or hasn’t put it into practice. I think that’s it. I think that they haven’t put it into practice. I mean, we have had a really important discussion about whether or not organizations are community centric or not. And I think that’s a valid and important conversation, whether the organizations themselves are accurately representing the needs and interests of the community by having people within the community uh on the board and engaged in the activity and engaged in the fundraising and all these things. But that doesn’t necessarily mean that the organization, uh, shouldn’t do these things we’ve been talking about, shouldn’t have a note written to somebody. Shouldn’t pick up the phone and just say I appreciate so much that you care about the same things and what can we do to, you know, to make sure that you have the information you need to keep being involved. These, I think these things work well together. So I understand why we’ve had this discussion. I don’t understand. It sounds like you don’t understand it either is why when we’ve been talking about these things for so many years, whether it’s about donor Centricity, whether it’s about actively engaging the community that we end up in the same place of not doing it, of sending a digital receipt of not just finding whatever the current version of picking up the phone is. And here’s the reason why I think this really matters. I, I think it’s much more than just whether or not we’re going to hit this year’s retention figures and make this quarter’s goals. That’s important. All of that is important. But what’s far more important is that it’s about building relationships of trust that’s fundamental to major gifts, that world that I spend some time in. It’s obviously important to plan gifts, which you spend so much time in. But, and there’s so much revenue there that that’s important, but far more important if people don’t trust our organizations as a whole. And the Edelman Trust survey shows that nonprofits are also seeing declining uh faith in, in our organizations. If people don’t trust our organizations as a whole, then that means they won’t start, they won’t come on the on ramp to supporting us as volunteers, as, as employees, as board members, as contributors. And if they won’t, then we can’t meet the big challenges of our time. So these little things that we choose not to do either because we think we’re too busy or because they’re not important. End up having a direct correlation to whether or not people trust our organizations to take on the biggest challenges of our time. And these are existential. I mean, if, if we can’t get anybody to trust uh the government um or major institutions about issues like climate change, why should they trust, you know XYZ organization either if, if they are engaged with us that we haven’t asked them to volunteer, we haven’t invited them to sit down and have a discussion in the local community. We haven’t invited them to invest. And if they’re not really engaged with us, why in the world should they listen to us about why we need to make sure that we don’t go above 1.5 °C, which we just hit, we just hit this week, the thing that we were supposed to avoid for, for decades, just like for decades we’ve been talking about. Write a Thank you note. It’s, it’s almost parallel to see the decline in trust, the decline in generosity and ultimately the decline, our ability to address existential challenges and we have the ability as fundraisers to do little things to achieve great things just by building these bonds. That’s a terrific sort of segue to, you know, what we can do. And we’ve, we’ve toyed with this, uh uh while we’ve been talking, but we keep saying, don’t do this or do the other instead. But, um yeah, I, I mean, I’m, I’m, I’m with you. These, these small, these small things, small tasks lead to bigger uh either trust or a lack of trust if you’re not doing them, which impinges our ability to uh stop hunger and homelessness and, and reverse climate change and, and save whales and animals from kill shelters and domestic violence victims, survivors and all, you know, all of it and, and the arts education that, yeah. So, all right. So we have the ability to write the ship. It’s just, you know, we haven’t done it. We’ve been talking about it for decades. I’ve only been in philanthropies for 27 years. It got me beat by, by 1312 or 13. Um 12 or 13. Yeah. Right. 12 or 13. I don’t wanna overstate the case. Um But you know, but, you know, I’m not, I’m not, I’m not seeing big uh I’m not seeing big impacts. I’m not seeing big outcomes, outcomes is really what we want to be measuring. So, but that doesn’t mean we stop talking. That doesn’t mean we stop trying. No. And I, I wonder if maybe the, the thing is that we need to give people a bigger goal. Um, I mean, climate change is a pretty, pretty large, pretty existential goal. Right. But that’s, that’s too big too. Right. I mean, an individual or even in an organization, probably many people and many organizations don’t feel like they can do a heck of a lot to make a change to something like that. Um They can do the little things but they can’t do the big things. But maybe there are, there’s a, there’s something in the middle that ties together the work that we do in our world of, you know, um fundraising, for example, and philanthropy together uh with um uh with that bigger, bigger existential um question and, and I wonder if it’s stuff like um determining how we work with other organizations to build trust, you know, consolidating and coordinating our efforts so that instead of everybody forming another nonprofit. Um No, well, maybe we find a way to bring these nonprofits together, not just out of financial distress, which is where we typically go with mergers, but out of AAA true desire to share power, to share resources and to achieve greater things, bigger goals, bigger impacts, you know, through consolidation and cooperation’s, that’s one and that’s a bigger goal that I, I think is also attainable. And um it, something it’s a little easier to sort of imagine rather than how am I going to make sure that the ocean water levels don’t rise too high in the Carolinas. Um, you know, but it does lead there, I mean, if we can get people to work together as organizations instead of all being separate entities, then maybe it’s going to be a little easier to communicate to the public about the importance of taking actions to lobby the government, which is another thing that we can do that we don’t do because we’re so fearful that if we lobby that it’s going to run afoul of the law and that also we won’t be able to receive all the donations we want. So lobbying is one and then we can do things like um ensure that we are partnering with the kinds of supporters who also best represent our values. So we’re not just going for whatever money is out there, but we have big audacious goals supported by larger consolidated and cooper entities in pursuit of these bigger goals, supported by people who are willing to make big investments towards those goals. So not just trying to get uh a few dollars together for a small thing, but bringing more actors together with bigger support from well aligned actors for bigger things. The first one you mentioned the partnerships and those are all valuable uh the the partnerships with other organizations. That’s something I feel that the community, the sector is doing better. I remember um grant making foundations focusing on uh on, on collaborations and, and I think that that made a difference. Um II, I do still hear that there’s, you know, fear about, well, you know, we don’t, we don’t really know what a partnership looks like, you know, is it just a memorandum of understanding or are we doing events together or, or grassroots activities together like uh an advocacy day on Capitol Hill or, or in the State Capitol or whatever? Uh you know, what, what does it look like? And, or our, our board is, is uncertain about working too closely because it kind of suggests that we can’t do the work ourselves. You know, I’ve heard some of these arguments against the, the, the, the partnership ideas, but I do still think we are further along in working collaboratively than we were like 10 years ago. You, you may be right about that. Uh But I do on my end in the consulting work that I do still see so many emerging organizations all the time. They’re popping up like, like weeds or maybe dandelions. I mean, something prettier than weeds. But they, but the problem is that they still are thinking I need to do this alone. And I, and I, and I don’t see the trouble there. I pardon my interruption, but you’re accustomed to it, you know. You know, I, I do that all the time and the, the trouble there is, you know, these are folks new to the sector. So like, you know, they have passion about something. It may have, may be an event that a AAA trauma in their life that they want to create a, an advocacy cause around, you know, but, but they jump in, I mean, their first thought is I want to start a nonprofit or maybe, you know, maybe the first thing is they do a uh a fundraiser, you know, on one of the platforms or something. And then they say, oh, you know, we made $1500. Well, you know, maybe I’ll start a nonprofit, you know, so they, they’re not acquainted with the sector. They don’t, they don’t know what they’re jumping into. And by the time they start to meet the partners, you know, they’re, they’re already incorporated for three years and they’re raising, you know, now, $5000 a year and they’re flailing. But, but they got in with all with passion, which is necessary but not sufficient. It’s time for a break. Virtuous is a software company committed to helping nonprofits grow generosity. Virtuous believes that generosity has the power to create profound change in the world. And in the heart of the giver, it’s their mission to move the Needle on global generosity by helping nonprofits better connect with and inspire their givers responsive fundraising, puts the donor at the center of fundraising and grows giving through personalized donor journeys that respond to the needs of each individual. Virtuous is the only responsive nonprofit CRM designed to help you build deeper relationships with every donor at scale. Virtuous. Gives you the nonprofit CRM, fundraising, volunteer marketing and automation tools. You need to create responsive experiences that build trust and grow, impact virtuous.org. Now back to frustrations and opportunities. It’s, it’s uh it’s hard to watch because you want to take people’s, you know, all that, all that energy and passion that they have and, and help them to achieve that result that they, they say that they want to see in the world. Um At the same time, they’re never going to, it’s going to be extremely difficult for them to hit the scale that they want. What is it? Three quarters, three quarters of all nonprofits uh annual revenue under, isn’t it three quarters under $75,000 or something like that? But, but I, I don’t know, have, have you ever had these conversations with folks who just reach out to you because you’re in the sector and you’re well known and they want to start a nonprofit and they’re like, pick your brain. I, I, I’ve, I’ve had a lot of those pick your brain kind of conversations and the folks are resistant to the idea of donating to an existing cause. That’s, that’s already doing the work they’re talking about or volunteering with it or, or uh just approaching them about how can I help somehow if, if you don’t know what the structure looks like, just they, they feel like they have to do it themselves. It’s, it’s not that the existing organizations are not sufficient. But, yeah, but they’ve already, but they may have already scaled. They’re certainly more scaled than your non-existent organization. They’re, they’re, they’re way beyond where you are now, but folks are, are resistant to that line of thinking. They, they’re just so motivated. They don’t really want to hear the reach out to the existing community versus incorporating and taking on management of a, of a nonprofit corporation. You, you really don’t know what you’re getting into. So this is, this is one of the questions that I have for myself. It rattles around in my head all the time. How much of that is the result of the way we have kind of trained the community to understand how they can engage with the existing organization. I, I mean, some of there are going to be some people who tomorrow want to start their own organization and that’s just the way it’s gonna be, but it could be that they aren’t even aware of how they could be involved with another organization. So let’s take this down to the very, you know, practical kind of fundraising stuff that we do all the time. If we look at many organizations, websites, it’s very difficult in most cases to find out how to volunteer and sometimes volunteering is not only difficult to understand within the website, but there might be barriers to it. Um And those barriers are sometimes practical on the inside. But what it means externally is if you’re the person who says I really need to help the kids in my community um with an after school program. Uh And you don’t know any, any of the programs that are existing right now. Well, maybe that’s a bit of your own personal ignorance, maybe you can do more research, but it could be also that the organization already performing that role, or more likely several organizations have not found a way to bring everybody with that passion in. So I don’t mean to blame us for not being sufficient in our marketing, but I do think that we can open the doors wider to people who share our values and our passions than we have done. And we can certainly do it even in very simple, practical ways that fundraisers have some degree of control over like our websites, our Facebook pages, other places where we are acting as an acquisition tool. Well, it’s, it’s, it’s a way that we can say you don’t need to in indirectly say you don’t need to start your own thing. We’ve already got a thing here. We value you. That’s why we’ve already invited you to participate in this and that and the other thing and to give. So why don’t you come on in and work with us and that work may be as a volunteer, it may be as a advisory board member. It may be as some kind of community event or organizational um activity person, but I’m not sure that we’re doing that job very well. And in fact, if anything, I think that we have in our efforts to streamline our operations once again, um we have narrowed the portal through which people can discover and engage with us so they can find their passions through our organizations instead of coming up with 10,000 other competing organizations. I mean, let’s put it another way. 1.6 million organizations in the United States is just too many, it’s just too many. Some of that is uh the, the, the accessibility, you know, volunteering with us could look like two hours a week. I, I it could look like just a few hours a month, you know, or you, sometimes you see volunteer options but, you know, it’s not, I, I don’t, I don’t know, you, you sounds like you’ve, you’ve spent more time thinking about it and, and looking at them. Um II I, I’m thinking about, you know, volunteering. We, what does it look like? I mean, define, define what folks could do as a, as a volunteer. I mean, I think a lot of people would like to enter as a volunteer and then may very well become donors when they see the, the good work that you’re doing and they’re helping do it firsthand. They’re doing it with you firsthand. Um All right, Jay. Um what else? Now, what else? Uh What, what else would you opportunities on the opportunity side? Well, we also talked about the importance of, of coming up with advocacy um of making sure that uh we are taking a more pronounced role and discussing the issues that are important to us. And that might go a little bit beyond just a statement of our mission, our immediate mission. Uh maybe we once again get together with other organizations and say that this is our common platform, the thing that we all need to do together. So if we’re working with Children, there are lots of organizations working with Children and we need lots of them. Uh Maybe we don’t need as many as there are. I don’t know, but we do need a lot of people out there working with kids, but together, they probably have some common threads and if they worked together, I would think that they could also have more um more weight in lobbying their state legislatures. Um and, and their, their congressional representatives, um the federal government for more aid to Children um in various forms, whether it’s for head start programs or for after school programs. What have you. So in other words, we don’t have to have tons of organizations trying to fight over small amounts of money, kind of that scarcity principle, but instead coming together uh in pursuit of larger goals and then lobbying together uh to make sure that there are more resources available to address these common needs. So I think that advocacy is something that we don’t pursue as well as we could. Um And, and we could, we could do it in a more concerted and um, and successful way uh advocacy days in Washington or in state legislatures are a great example of this, but they’re usually done by individual organizations rather than by a group. Um, and so that’s one more way that I think that we could find common causes together and work together for, uh, a more, more successful outcomes, an advocacy day. I mean, I see that as perfect, uh, fertile ground for partnering, you, you’d rather have six busloads of people than one or a half and one of the organizations may have other organizations are gonna have relationships that you don’t have with, with staffs and, and this could be like we both said, Washington or at the state level. Um, I, I don’t know, I see that as ripe opportunities for, for partnering door knocking campaigns. The same thing. We, we’d rather have hundreds of people than a dozen. And I would think that would be easier if we’re working with a coalition of them. I mean, that’s, that’s definitely what happens in a political campaign. And there are some things that political campaigns do well and some things that they, they don’t, they’re much more transactional, but there are some things they do well that we can learn from and we can uh make sure that we employ those same tools and, and techniques and approaches to reach more people, get them more engaged. You had a, a dalliance with uh political campaigns. You were, you were considering running for uh for the US House at one point. I remember years ago, years ago, I never, I never jumped into the, into the, you were considering, I admire that you were thinking about it. You were serious enough that you, you publicize it to some of us, some. Well, I, I was involved at the state level with uh with the Democratic Party. Um And uh so uh was involved as a finance chair for our congressional district and doing other activities like that. Um There’s also a history of politics in my family on both sides of the aisle, uh especially with advertising and marketing, interestingly enough and in, in, in that world, what I find really interesting is advocating for ideas. So it’s not just, it’s not just the politicking over the bills, but it’s also saying that this is what’s important to us. Let’s fight for it together. Um And I, I think if there’s a kind of a through line in all this discussion, it might seem like we’re bouncing around a little bit. Uh But for me, it’s that if, if we can figure out what it is that we’re pursuing and then find out what our common interests are and common pursuits, then we should be able to attract more people to that together, um, to work on those things and more resources to, to accomplish those things. That’s certainly true in politics. And I believe it’s true in the nonprofit sector. Um, and if there’s something that, uh, that has driven me kind of crazy in the last few years, it’s this almost disaggregation. It’s this breakup we’ve had um that uh that I think that, that fundraising in part can help to fix. Um that instead of uh finding the way to divide up the population into a million different conversations, we can find common conversations and invite people to have those with us. Um instead of fighting over red and blue and, and so forth, whether it’s political or, or sports teams or our approaches to fundraising, um Instead we can find what it is, the majority of us need to do together in order to achieve these common objectives. Um So, yeah, uh politics in some ways is very appealing to me. Um What has been most uh um uh disturbing about politics is also in some ways reflected in the nonprofit sector, we may not have the same kinds of fights here in the nonprofit world that we do in politics. Thank God for that. Um But I do think that sometimes uh we, we get involved in these little uh rivalries over ideas when in fact, some things are, are pretty simple and direct, like sitting down with people across the table and listening to them first, um showing them that we heard them and then invite them to participate equally with us in achieving a mutual, you know, mutually desired result. And I know that in earnest, most of us feel that we are doing that. We are working hard to do that in this sector, but especially in some of the ways we’ve talked about so far today. Um I think we can do better. I think that’s an a, a fine place to stop if uh if, if you’re comfortable with that. Yeah. Is there? No, I need you to work with. I was kind of all over the place. No, no, you, you were restrained, right? All right. I think you like. That’s uh those are, those are excellent parting words and we, we, we can do better and we’ve got existential challenges that are at stake back to J Frost. Oh, thank you. Um Yeah. And we had a, you know, I should have given you a little more space for humor, Tony because this wasn’t the laugh fest. It usually is with you. That’s the only problem. Well, that’s when I’m, when I’m the centerpiece. It’s, it’s more uplifting. No, you were quite uplifting. Maybe. Uh maybe I wouldn’t go so far as to say jovial. But uh you’re uplifting, uplifting. All right. He’s Jay Frost. He hosts the, uh, you do this a couple of times a week, right? The Donor Search philanthropy Masterminds series. You do one a week or a couple of week, 22 per week, plus one podcast per week for 46 weeks. This year, I’m giving myself a little vacation. All right. Let’s not get too slack. 46 444 weeks of vacation. 4 to 4 to 6 weeks of vacation. Um, You’ll find him on linkedin and you’ll find him at the uh philanthropy Masterminds series, which is he’s the host and donor search is the sponsor of the, of the series. Thank you, Jay. Thank you for uh Thank you for opening up. Thank you to really, really appreciate it next week. Publish your book, Thought Leader. If you missed any part of this week’s show, I beseech you find it at Tony martignetti.com or sponsored by donor box, outdated donation forms blocking your supporters, generosity. Donor box fast, flexible and friendly fundraising forms for your nonprofit donor box.org. And by virtuous, virtuous gives you the nonprofit CRM fundraising volunteer and marketing tools. You need to create more responsive donor experiences and grow giving, virtuous.org. Welcome again. Virtuous. Thanks so much. Our creative producer is Claire Meyerhoff. I’m your associate producer, Kate Marinetti. The show social media is by Susan Chavez. Mark Silverman is our web guy and this music is by Scott Stein. Thank you for that affirmation. Scotty be with us next week. For nonprofit radio, big nonprofit ideas for the other 95% go out and be great.

Nonprofit Radio for January 29, 2024: Decolonizing Wealth

 

Edgar VillanuevaDecolonizing Wealth

Edgar Villanueva’s book, “Decolonizing Wealth,” takes an innovative look at the purpose of wealth. His thesis is that the solutions to the damage and trauma caused by American capitalism, including philanthropy—can be gleaned from the values and wisdom of our nation’s original people. He’s a Native American working in philanthropy. (Originally aired 11/30/18)

 

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And welcome to Tony Martignetti nonprofit radio. Big nonprofit ideas for the other 95%. I’m your aptly named host and the pod father of your favorite abdominal podcast. Oh, I’m glad you’re with us. I’d be forced to endure the pain of hyper garsia if you tickled me with the idea that you missed this week’s show. Here’s our associate producer, Kate with what’s coming? Hey, Tony, this week it’s decolonizing wealth. Edgar Villanueva’s book, Decolonizing Wealth takes an innovative look at the purpose of wealth. His thesis is that the solutions to the damage and trauma caused by American capitalism including philanthropy can be gleaned from the values and wisdom of our nation’s original people. He’s a native American working in philanthropy. This originally aired November 30th 2018. On Tony’s take two, Tony tells a joke were sponsored by donor box, outdated donation forms blocking your supporters, generosity, donor box fast, flexible and friendly fundraising forms for your nonprofit donor. Box.org here is decolonizing wealth. It’s my great pleasure to welcome to the studio, Edgar Villanueva. He’s a nationally recognized expert on social justice philanthropy. He chairs the board of Native Americans in Philanthropy and is a board member of the Andris Family Fund, working to improve outcomes for vulnerable youth. He’s an instructor with the grant making school at Grand Valley State University and serves as vice president of programs and advocacy at the Shot Foundation for Public Education. He’s held leadership roles at Kate B, Reynolds Charitable Trust in North Carolina and Marguerite Casey Foundation in Seattle. Edgar is an enrolled member of the Lumby tribe of North Carolina. You’ll find him at Decolonizing wealth.com and at Villanueva Edgar Edgar. Welcome to the studio. Thank you, Tony. Pleasure to be here. Congratulations on the book. Thank you, which just came out uh Last month, it was October October 16th. Yes. All right. And uh you just had a very nice interview with the New York Times. Congratulations on that. They, that prep the preps, preps you for nonprofit radio. Right. Right. I’m ready. All your, all your media appearances to date have brought you to this moment. So the, the it’s all culminated here. Um and I promised listeners uh footnote one, footnote one to hyper gargle ashes. Uh Of course, anybody who listens to the show knows that uh I open with uh something funny like that. A disease. Every single show. Uh But in Edgar’s book, he uh mentions hyper gargle aesthesia. So this is the first time over 400 shows that the uh that the guest unknowingly has uh provided the opening disease state. So, thank you very much you didn’t know what we do that, every single show, um, that you didn’t know that you’re not listening to nonprofit radio. It’s, it’s your life all right. Um, ok. Decolonizing wealth. Uh, you’re, you’re, you’re, you’re a bit of a troublemaker a little bit. Yeah, you’re raising some eyebrows. Someone told me yesterday that I was the Colin Kaepernick of, uh, philanthropy. Which, um, I was like, I haven’t thought about it that way but that’s not all bad. Get a little closer to the mic so people can hear you. Yeah, just not almost intimate with it almost. Um I used to call myself the Charlie Rose of charities until he blew that gig for me. You know, he, he ruined that. Uh It, it’s, I can’t use that any longer. Um Could you talk about uh colonizer virus and exploitation and division? Um uh like, these are bad things? Yes, they are bad things. What uh what is the, what, what, what’s the colonizer virus? Why do we need to decolonize so many of us who uh work in philanthropy or even the nonprofit sector? Um you know, um have this firewall that we are completely disconnected from um Wall Street or from capitalism or, or some of those uh processes and systems in our country that um may have a negative connotation for the, the good doers. Um But in philanthropy, we are not very far uh uh you know, disconnected from uh corporate America. Most of this wealth was made by corporations and businesses. Um sometimes uh not in the best ways, not in the back of a lot of indigenous and uh colored people. Yeah, when you look at the history of the accumulation of wealth in this country, it’s steeped in trauma, right? And so uh legacy wealth that has been inherited for generations. Now, folks may not even know the origin of their family’s wealth. Uh but, you know, uh when we look back and we see in general how wealth was accumulated, um you know, especially I’m from the South North Carolina, we’ll talk about that. Um There absolutely was a legacy of slavery and stolen lands that, that help uh contribute to the mass of wealth. And you feel there are a lot of lessons we can learn from the values of uh Native Americans. Yeah. So, you know, we uh as a people talk about healing a lot, we have a lot of trauma that exists in our, our communities. Um You know, because colonization as we often think about it as something that happened five years ago in North Carolina and especially where I’m from, we were the first point of contact, but uh colon and the uh the acts of separation and exploitation are still continuing present day. And so in my community, uh native communities across the country, even as recent as uh my grandparents’ generation, kids were forcibly removed from their homes and put into boarding schools. And so we’re still, we’re experiencing a lot of uh trauma as a result of these practices. Um But we are, are, we are resilient people and um those who are closest to a lot of the problems that we are trying to solve today. Um As a society have um a lot of answers and wisdom that we can bring to the table. You say that the natives are the original philanthropists. Um Now you’re a member of the Lumby tribe of North Carolina. Uh Robinson County, North Carolina, which, which is not too far from where I own. I own a home in Pinehurst, which is a little north and west I think of, of Robison County. Lumb. So the Lumby tribe, I assume the lumber River is named for the Lumby and Lumberton, the town name for Lumby, right? So Lumby were actually named after the, the lumber River. Um After the first, yeah, the river came first and so the river came first. The name of the river came from. The river’s been there much longer than the one. Yeah. So we are um you know, a hodgepodge of historical tribes that were in coastal North Carolina um that came together to form the Lumby tribe and named ourselves after that river. Um And we’re gonna come back to uh Native Americans as the, as the original philanthropists. But uh I I that, that struck me a lot. I think you, you, you say you say that at the end of the, at the end of the book is where I, where I caught it. Um uh We just have like a minute and a half or so before a break. So just, you know, we’re introducing this, uh We got plenty of time together. Uh Wealth. Uh You say um divides us, controls us, exploits us. What’s that about? So the accumulation of wealth. So I money in itself is neutral, wealth in itself. Iii I say is, is neutral, but it’s the way that wealth has been accumulated in this country that has caused harm when we value um when we, you know, fear and we’re motivated by greed. Um The acts that can result as a, as a result of that to exploit the land and to people are or what that’s what has caused the harm in itself. So um the case that I’m gonna make in this book that I’m making in this book is that wealth and money can actually be used for the good. If it historically has been used as a negative thing that has caused trauma, we can flip that to use it for something that can actually help repair the harm that has been done. You’ve got uh seven succinct steps to that. Uh the second half of your book, it’s time for a break. Open up new cashless in person donation opportunities with donor box live kiosk. The smart way to accept cashless donations anywhere, anytime picture this a cash free on site giving solution that effortlessly collects donations from credit cards, debit cards and digital wallets. No team member required. Plus your donation data is automatically synced with your donor box account. No manual data entry or errors, make giving a breeze and focus on what matters your cause. Try donor box live kiosk and revolutionize the way you collect donations in 2024. Visit Donor box.org to learn more. Now, back to decolonizing wealth, Ngani Behi. Uh That is your Indian name. Did I by any chance say that correctly? I, I think that’s correct. Um I’m, I’m a little shabbu with my ojibwe these days. You don’t know your ojibwe, but that is your Indian name. Uh uh leading bird, tell the story of how you got that name. We, we’ll come back to, don’t, we’ll come back to the exploitation and control, don’t we? That this is a good story. How you got that name? So um my tribe and the Lumby tribe in North Carolina doesn’t have a tradition of naming um you are whatever your mom calls you, that’s your name. Right. Right. So, um but uh when I, when I was working in North Carolina in native communities, I went to a conference where there was a medicine man and someone uh the medicine man was meeting with folks who wanted time with, with him to, to talk or have a session and growing up in North Carolina. My identity as a native has always been quite complicated. Uh We didn’t have these types of practices in my home in Raleigh, North Carolina. And so, but I was very curious to meet with this medicine man and to um see what could happen from that encounter. And someone told me if you’re, if you’re really lucky when you meet with a medicine man, they might give you a spiritual name or a native name. Um And so I met with this guy in, in the Marriott Hotel in Denver, Colorado where this, this native health conference. So it was all uh I tell the story in the book is quite um um hilarious in, in many ways. But at the, at the end of our session where I was feeling um excited about, you know, the conversation we had, but also a little confused and skeptical in some ways because I’ve, you know, had such a colonized ways of thinking. Um He did offer me a native name, Ngani Beche, which means leading bird. Um So I was very honored and my first thought was, what kind of bird? Right? Am I a little tweety bird or am I a mighty eagle? Pelican birds are best? So, um he explained to me that I was the type of bird that flies in a v formation. Um And uh as I, when I left, I, I studied uh these birds and, and they’re the leading I’m the leading bird. I’m the bird that flies in the front of the V formation, which is the kind of leader that is often visible, but really understands its uh coded dependence and interdependence on the other birds. And so if you watch birds flying in a V formation, it’s really like a, an amazing natural, natural phenomenon. Uh how uh how they, they, they communicate and fly together. Uh The other thing that’s remarkable about the leading birds type of leadership is that it often will fly to the back of the pack and push another bird forward. So it’s not always the one that’s out front. And, um, when I, when I learned these characteristics, um I, I just felt really, um uh I was really, really happy and content about this name because I do see that’s the type of leadership that I model in my everyday life. And I think it’s the type of leadership that’s really important for the nonprofit sector. You explain how the birds communicate, which I’ve always wondered, um, they’re, they’re just close enough that they can feel like vibrations off each other and, or a micro movements, I think you say off each other, but they’re not so close that they’re gonna bump into each other and, and, you know, be injured, but that’s how they, and they, I guess they’re feeling the breeze off each other and sensing these micro movements of each other. So they’re that close. But not so close that they’re gonna be injured. Yeah, it’s very, it’s very fascinating. It’s like a scientific, uh, you know, a GPS built into their bodies. And the other thing I recently heard about these birds, um, is that, uh, you don’t ever find one that, uh, dies alone. And so, you know, I, I wanna learn and research that a little bit more but I think when they’re, when someone is down or, you know, um there’s an injury or whatever may happen. Uh They, there’s, there’s a certain way that they take care of each other. And so, um you know, it just kind of speaks to our common humanity and our inter related, you know, being interrelated exactly our interdependence. Now, this is a, this is uh an indigenous uh belief that we are all related and that’s what it makes me think of the birds also working so closely together that they feel micro movements. But how, how explain this, this belief that we are each of one of us related to the, to all the other. Yeah. So there, there is a, a native belief, um all my relations that means um you, all of our suffering is mutual, all of our thriving is mutual. And uh you know, we are um we are interdependent and so it’s a very different mindset or worldview um from sort of the um American individualistic type of uh of mindset. Um We also have connected to that viewpoint is, um, this idea of seven generations. So not only are we all related, you know, in this room right now and that we’re relatives, um, and we are related to the land and to the animals around us, but all of the things, all of the decisions and, um, that we are making today are gonna impact future generations. So there’s an idea that I am someone’s ancestor. And so what a responsibility to move through the world in a way that is thinking that far forward about our um our young people. And so these are concepts that um were taught to me by my family. But I also uh in recent years, this book gave me the opportunity to revisit and spend time with indigenous elders to remember these teachings and that and to think about um how to apply them in my work and you encourage us to each that, that each one of us takes responsibility for, as you said, we, we’re thriving and suffering together. Um What I’m referring to is the, each of us takes responsibility for the colonizer virus, say, say more about that. Yeah. So, you know, I think we all responsible, we’re, we’re all responsible because we’re all affected. Um I think some folks um when we, when you know, when we learn about colonization in schools is something that seems pretty normal, right? We um we think of colonization and the colonizers as heroes. It’s like the natural path of progress, the way it’s learned, right? We have holidays, you know, for, for Christopher Columbus, for example. And so, uh but the realities are that colonization um was something that was terrible that resulted in uh genocide and all types of exploitation. And uh that type of history that we have in this country is something that we um as, as the people have not come to terms with. We actually, we don’t tell the truth, we don’t face the truth. And so I think we’re still dealing with the consequences. Um And so the dynamics of colonization which are uh to divide, to control, to exploit, to separate those dynamics. Um You know, II, I refer to them as uh the colonizing virus because they, they are still in our bodies as, as a nation, they show up in our policies, our systems reflect the colonizer virus and in our institutions in the nonprofit sector and especially in philanthropy where we are um sitting on uh lots of money, privilege and power uh the least naturally to your point about us, them organizations. So, you know, I think the philanthropy uh for example, can perpetuate um you know, the dynamics of colonization because when you look at um uh where this, where this money came from and how we as a sector don’t face the realities of that truth. Uh When you look at um ask the question of why this money was held back from public coffers um that, you know, had it gone into the tax system, it would be supporting the safety net in vulnerable communities. Um And when you look at who gets to allocate, manage and spend it, you see a very um white dominant kind of mindset happening because, um for example, if we get into the numbers just a little bit, um foundations sit on $800 billion of assets. That’s a lot of money that has been uh you know, sheltered from taxation, that’s money that would have gone into public education, uh health care, elder care, um things that we need for the infrastructure of our communities. Um But that money has been put there with little to no accountability. Um Private foundations are only required by the IRS to uh uh pay out 5% of their assets. And so then, you know, you’re looking at just a small percentage of, of money that was intended to be for the public good. Only a small percentage is actually leaving the doors being invested in communities. Let’s assume it’s, it. Uh I know there are a lot of uh foundations that use that 5% minimum as their maximum. So that’s so 5% of that would be $40 billion. Uh So the counter is, but there’s $40 billion coming each year could be more, but let’s take the minimum just to be conservative. And, you know, we’re trying to preserve this uh this foundation capital for perpetuity. So if, you know, if we, if we spent in the next two years, the 800 billion, then we wouldn’t have anything left for future, just future years and other generations, we’re trying to, you know, we, we wanna be around for in perpetuity. Uh The foundations would say. Right. Right. And, you know, I think, I think there is a case to be made for saving some funds for a rainy day in the future. Uh But the, the truth is that 5% when Congress had acted that 5% rule, um it actually began at 6%. I, I believe in 1974 and then in 1976 was lower to 5%. The reason that Congress had to actually put this legislation forward is because foundations were not paying out any money. And so when you think about the intent of foundations, are they being started to actually benefit the public? Are, are wealthy, the wealthy 1% or whoever corporations starting these foundations just for the, the sake of having a tax break. And so that, that uh IRS minimum payout of 5% that rule was put in place to force um foundations to actually begin making grants. And so, you know, so it is sort of uh the other thing to explore if you are with a 95% that is not leaving the doors. Um if the intention is really to do good in community. We have to look at how that 95% is then being invested to generate more money for future grant making. And the truth there is that the majority of those funds are tied up in harmful and extracted, extractive indus industries um that are counterintuitive to the mission of foundations. You make the point often uh that often, right, those investments are in uh are in industries that are hurting the very populations that the foundation is explicitly trying to help through its, through its mission. And, and in fact, funding um the um there was something else that I was going to ask about the uh the way the money is. Um All right. Well, we’ll come back to it if I think of it. Um There’s, there’s a lot that organizations can gain by hiring people of color, indigenous people. What, uh and, and very few uh you’re, you’re a rare exception um working in, in found doing foundation work. Uh What, what’s the, what make explicit th those uh those advantages? Sure. So, um you’re right. I’m absolutely um an exception. I think when I started in philanthropy, I was one of 10 native Americans that I could find. We kind of found each other. And what year was that? Uh this was in 2005 and we are now, uh there’s about 25 of us now. Um The last time I counted. Um So, yeah, there’s, there’s, you know, an an amazing opportunity for foundations. And I think more and more foundations are understanding, to bring uh folks in uh to, to foundations that have lived experience and not only foundations but, but nonprofits, the NGO S doing the ground work, the foundations are the funders. Uh and, and of course, some foundations are now actually doing their own ground work. We’re seeing that emerging but, but for the nonprofits doing the day to day work as well uh represent the communities that you’re absolutely, it kind of makes sense, right? And uh you know, it’s funny because some foundations actually require that of nonprofits. They ask about the diversity of their staff and their board, but they themselves have no type of uh you know, values around diversity of their staff. But you’re, you know, the, the point is that uh for sure that any nonprofit or foundation to, to have folks uh that, that work there who have authentic accountability to community and understand and have been impacted by the issues that you’re trying to solve is gonna bring an awareness and um you know, about the problem in, in a different way, it’s gonna create some proximity that I think is gonna just inform strategies that, that make sense. And I can’t tell you the number of times I’ve been in uh strategic planning processes and board meetings where decisions were being made. And uh I always carry my mother, my family with me, you know, and spirit into the room and uh I hear these decisions or these conversations and I’m thinking like, oh my God, like, you know, this, you know, this, this would not in any way help my mother or my family that’s still living in poverty. Decision makers are disconnected. There’s such a disconnect. And uh I, I thought of what I was gonna ask you about or just comment on the, the foundation wise. We do see some foundation saying that they’re gonna spend down their assets. Uh I, I wouldn’t say it’s uh needle moving but you do hear that from time to time that there’s a foundation that’s committed now to spending it. It’s, it’s assets down, you know. Um Was Paul Allen, was it uh now the not Paul Allen? Uh the Microsoft uh I think the Microsoft founder, co founder who recently died. I think his foundation was Paul Allen. OK. OK. Um I was thinking of Steve Allen the com the old comic. OK. That’s why I thought, no, it wasn’t him but it was Paul Allen. I think his foundation is one but there are some, so we do hear some glimmers. Uh But you say in the book a few times uh people we need to move the needle. Yeah, I think, I mean, I think deciding to spin down is uh is a very progressive way of thinking about it. There’s so much need now um if we actually release the funds or even if you don’t want to spin down, you can make a decision to pay out more. Um There, there’s a lot of amazing work happening. Um Right now that is so under resource that if we could um support and get behind investing money in these various movements and these uh in, in communities of color, which are so um marginalized by philanthropy, you know, uh uh the 5% that is being invested, only 7 to 8% of those dollars are being invested in communities of color. That would make a big difference. And so I think, um you know, I think it’s a conversation that the boards of foundations should think about what is the value of, you know, why, why do we want to stay in perpetuity? Like what is, is that about a family legacy? Is that really about making a difference in the world? Um Because in some ways, it feels uh I can see that as being a very selfish type of uh you know, uh uh way of thinking uh if this was CNN uh right now, I would, I would play a video of you but I don’t, I don’t have that. Uh But in your, in your times, uh we have to work on that at Talking Alternative. We need, we need video capture and screens and everything uh in your video in, in your interview with uh David Bornstein New York Times, uh you said by not investing more in communities of color philanthropy, venture capital, impact investing in finance are missing out on rich opportunities to learn about solutions. Yeah. You know, I think that I think of, you know, people of color indigenous folks as being the Canaries in the coal mine sometimes when, when uh policies fail or systems fail, um we hurt the hardest and uh but there’s just something so magical about and, and sense of pride that I have about my community because we are so resilient, like, regardless of um you know, um all of the trauma, the colonization, the um you know, genocide, stolen land, we still remain intact as a people. Um And so there’s, there’s gotta be something magical about that resilience that I would, if I weren’t native, I would be interested to know like, what when you think about sustainability, you know, we have a corner on sustainability. Um Indigenous peoples around the world are on the front lines of saving this planet on, you know, um you know, really fighting for environmental protections. Um There, there’s so much wisdom and, you know, often when foundations roll out new theories of change or changes RC strategies or there’s a new model or theory, theory of change that comes up. And I’m like, wow, we’ve been doing that in our communities for years. If someone would have asked us, you know, maybe we would, we can get there faster. Is there still a lumby community in Robeson Robinson County. Yes, there are, there are about 60,000 enrolled members in the Lumby tribe. The bulk of our community is, uh, still in Robinson County now, I have a North Carolina driver’s license. Will that, will that get me in? Can I be in? You know, we, we’re very inclusive. We, uh, we, we will take, we’ll adopt you as an honorary brother, but, uh, you have to have a little bit more documentation to, to get officially enrolled. It’s a stretch for an Italian American with just a North Carolina license plate and, uh, and driver’s license. All right. Um, you, uh, you talk about, um, you know, I guess, I mean, we’re, we’re, we’re skirting around these things to make it explicit that the, the power imbalance, you know, that um minorities are seeking it and uh mostly middle aged white guys are, are doling it out. Uh, you know, piece meal. Um, the, the, the, the imbalance, you know, the, the, the grant, even the, even the word, you know, the, the granting. Uh, it’s like some, uh, I don’t know, it’s like some Holy order has, uh, has bestowed upon you something that’s, uh a gift when, uh, your, your belief is that, uh, and your thesis in the book is that it’s, it’s, it’s a, it’s a right, equally held by all. Yeah. You know, I think power and money, a lot of, a lot of this does come down to power and ownership. Um We are talking in the nonprofit sec sector right now, a lot about equity, right? And um equity is very different from uh diversity and inclusion. Um To me, equity really is all about uh shifting power and we often think about that from um uh lens of equality. So we’re gonna have the same power, which is a good thing. But to really achieve equity, it’s gonna actually require that some folks who have had power for a long amount of time, give up more power or take a back seat. That’s not gonna happen. You know, that that’s highly unlikely, like infinitesimally small, unlikely, you know, it’s, it’s a hard thing for people to uh to think about and especially if you have, if you’ve been privileged for so long, um equity might actually feel like oppression for you, right? Because it’s like, you know, wow, II I have less than I’ve had. So um but you know, we, I I wanna think about this through an abundance mind frame. There’s enough, there’s enough resources and enough power to go around. Um We just have to uh work together to make sure that we are privileging those who have not been privileged by that power. I love that you, you approach it from a position of abundance and not and not scarcity. It’s time for Tony’s take two. Thank you, Kate. I saw on Twitter or XX. Of course, that the average attention span is nine seconds and I thought that’s enough time for my mother to create guilt. I’m coming over for dinner. Can’t you stay for the night? I’m coming to stay for the night. Can’t you stay the weekend? I’m coming to stay for the weekend. Take me on a cruise. I’m taking you on a cruise. Can’t you move back home? I’m moving back home. Let’s get cemetery plots. That is Tony’s take two Kate. That sounds so much like nana like it was, it was, I didn’t know how to like react. That was so like nana just keeps pushing and pushing. Oh I miss her so much. Lots of people experience uh mother induced guilt. So I wanted a little tribute there. Yes, we’ve got Buku but loads more time. Let’s go back to decolonizing wealth with Edgar Villanueva. Welcome back. You didn’t go far. Thanks for having me. Glad to be here. No, you haven’t done anything that would lead me to shut your mic off. Um It hasn’t happened. I’ve threatened but uh it hasn’t happened. So let’s let’s start getting uh positive, you know, the, the second uh roughly the second half of your book is uh seven steps to healing. Um And uh I thought you came up like five short. I mean, we have another 12 steps. I mean, if you wanna, if you wanna share power, you’re gonna have to have, you gotta have to step it up with like 12 steps or, or even 15, you know, you have more than the colonizers. Uh, but, but the seven steps are in themselves, they’re, uh, they’re pretty radical. Yeah. You know, um, it, it’s funny because I, I did have some resistance to, um, having seven steps. Right, because it, it, it makes, it seem like there’s a, there’s a, a quick and easy fix. If I just do these seven things, then we’re done with this and we can move on a prime number so that I don’t know. So, you know, but I did need to simplify the process in some ways just to help us get our minds around, uh you know, a process that we can begin, but there is no uh linear way uh or a quick way to uh to solve all of these problems or to, to undo what has been done. But uh there are ways to, to, to move forward and uh the steps to healing for me were, are, are list them out for us, just list all seven and then we’ll, we’ll talk about them. Sure. So they grieve, apologize. Listen, relate, represent, invest and repair. Um So you’ve been thinking about this for a while. I mean, this uh iiii I just did, I admire the, I, I admire the thinking that goes into this. Yeah. So some of it comes from my, my own personal experience um when and, and kind of come to terms and, and with uh the sector that I’m working in and the disconnection that I felt as a native person in the space and spending time in my community to uh just re ground myself and my values. And um and kind of acknowledging the, the wisdom that was uh in my body and in my community that I could bring to the space. Um the other parts of it come from, I did lots of interviews with folks who work in nonprofits and in philanthropy who were uh I think a very forward thinking people in this space activists who are leading movements around the country to get to a place of, you know, what, what did, what have you gone through personally to kind of reconcile some of this. Um And then, you know, a lot of this is also based on an indigenous uh restorative justice model. So we hear a lot about restorative justice um in the nonprofit sector. Now, this is a, a method that’s used in schools and um in the criminal justice system to um help uh people deal with uh with, with things that have gone wrong to kind of get back on the right track. And so this is a model that has come from indigenous communities where we sit in circle with, with the offender with someone who has harmed us or done us wrong to get to a place of truth and reconciliation. Uh So uh grieving, uh you say e everybody, I mean, because of our inter relatedness where we all need to grieve, including uh the people of color, indigenous, you know, those who have been oppressed. Absolutely. We all need to grieve. Um We need to get to a place where we’re just very clear and honest about the history of this country. What has happened, what the idea of, um you know, white supremacy, which is not a real thing, right? But what the idea of subscribing to that the the the harm and the loss that has calls for people of color, but also white people. And uh you know, I think that’s uh we we it’s pretty clear the trauma and the harm that has been caused in communities of color. It’s not so clear. We don’t talk about it very much the the loss that uh that colonization and uh the idea of white supremacy has actually caused in white communities. But it’s uh it, it is, there is a loss there. I talk about it in the book um of uh the idea that white people came from, from communities where they had uh cultures and uh tribal ways of interacting in many cases, um languages and things that were given up in order to assimilate to this idea of being American. And I think now we’re seeing um folks feeling a sense of loss about that. That’s why if you see these commercials for these DNA tests are so popular right now because everyone wants to kind of remember where they’re from and they feel connected to that in some way. Um And um the uh the, the thing you talk about too is uh the orphans, orphans. You say that uh those of us who are descendants of, of the, of the settlers, you, you call us orphans. How’s that? I, I call them orphans. Uh This is a term my bar from some research that has been done uh on uh whiteness and it is, it’s kind of speaking to this idea of loss. Um again, sort of giving up uh the, the culture um that maybe from, from, from the home country, from where, where folks settlers came from, giving up those, those ways of being interactive and community to subscribe to um this individualistic way of being in America. And so with that, um there’s been a loss of sort of that, that mother country um for lots of white folks and a loss of identity. Uh because although, you know, I’m, I’m not anti-american, let me be very clear about that. This is the greatest country in the world I’m very proud to, to be a citizen of this country. Um But there is something about um leaving behind and not remembering where you originated from in order to adopt sort of this new culture here. Um You know, and, and, and, and not um that, that makes you feel sort of like an orphan. If you’re not, you, you, you have no connection to where your grandparents are from or the language they spoke or the culture that they have. Um And I feel that that’s a loss for many white communities. That is actually a feeling that is shared with communities of color. Um And if we recognize that loss and that trauma that we have in common, uh it opens doors for a different type of conversation about race. You, you said a few minutes ago that white supremacy is, is not a real, not real. Why? Why do you say that? Well, I mean, there’s a white supremacist movement. Uh But how are you thinking about it that you say it’s not real? Um Well, well, the idea that, that, uh you know, a certain group of people, white people are superior because of the pigment of their skin is not a real thing, right? So this was an, an ideology that was created um in order to um be able to uh have the types of oppressive uh movements and systems and policies that have been put in place for many years. And so it is a, a mindset that has been, uh you know, an idea that is not real, but we have built systems and um societal norms around that, you know, growing up, I was taught that, um you know, or sort of the default for me was whiteness was, was better. And so if I were to behave or dress or act um in a certain way that appeared to be more white, then that was gonna be a better thing for me. And so we know that the idea of white supremacy is, is, you know, the idea of it is not real, but there are very real implications and uh for how we have adopted that, that uh belief. Um And you’re, you also encourage uh nonprofits and teams to have a grieving space while we’re talking about, we’re talking about grief. Uh We just have about a minute before break, but, and then we’ll move on with the seven steps. But what, what’s a grieving space in an, in an office? Yeah. So, you know, these, these steps are, are, are personal but it can be applied in an organizational setting. And so I think especially those of us working in the nonprofit where we’re supporting communities, we need to have um a space spaces in our, in our, our work life to be able to uh talk about bad things that have happened and to grieve that and to feel emotion, to be human about it. And so, um you know, I share some research in the book and, and some anecdotes of um folks who have have done that and the research shows that there um it’s actually um leads to a much more productive workplace to have moments where we, we stop the work to actually grieve and acknowledge the events that are happening, you know, in our communities. The, the, the book is uh decolonizing wealth, just, just, just get the book, you know, because we can only scratch the surface of it here in, in an hour. But uh decolonizing wealth.com, that’s where you go. I like the idea of the grieving space, you know, uh uh to acknowledge, you know, everything doesn’t go well all the time. It’s impossible. No organization succeeds 100%. Uh Nothing. So give yourselves time and space to talk about it, acknowledge it, learn from it and, and move on rather than it being some cloud over the organization that everybody’s afraid to talk about or something. You know, it’s how, how, how oppressive is that very oppressive and in philanthropy is especially because we uh we’re sort of carrying around these, the, these secrets of like how this wealth was amassed or secrets that are within these families that um you know, many people feel bad about. And so we just need to kind of, you know, be, be truthful and honest about the history and spend time grieving over that so that we can move forward, as you said, and, and that moves our next step in terms of uh uh your next step. Uh apologizing, recognizing which includes recognizing the source of the foundation money. I mean, you worked for the Reynolds Kate B is it Kate Kate B. Reynolds Foundation? I mean, Reynolds Tobacco, North Carolina, you know, that money was raised on the backs of slaves. Um I’m not gonna ask you if the Kate B Reynolds Foundation acknowledges that. But that’s an example of what we’re talking about in the, in the step apologizing. Absolutely no, there was, there was no acknowledgment of that. And uh chapter one of, of the book is called My Arrival On the Plantation because our foundation offices were literally on the uh former estate or plantation of RJ Reynolds. And so um really literally and metaphorically, I was, I was working there, but no, there was there, there’s no acknowledgement of that. And I think you see that, you know, in, in North Carolina uh recently, the Chancellor of the University of North Carolina acknowledged that uh the history of slaves and in building that university and that some of the buildings there are named after a former slave owners. What most people of color want um is just to be seen and heard and, and for folks to make that recognition acknowledge and, and maybe move to apology per perhaps that didn’t Johns Hopkins University do do something similar that, that they had their founders were uh was it Johns Hopkins? Their founders were slave owners? I think Georgetown University, Georgetown. Sorry. Thank you. OK. Uh Georgetown, they were priest, right? They were priests, uh priest founders that were slave owners. That’s right. I actually know um AAA friend of mine who lives in New Orleans is a, a black woman who is a descendant um and was called to Georgetown uh to share about her family’s history. And it was a beautiful moment. They said in community together, talking about the history, talk, acknowledging the contributions of her ancestors. And uh there’s a big write up in, in the paper. And uh you know, this has been very uh healing, I think for the university, but also for my friend Karen, um who is now having that uh you know, that recognition that her, the contributions of her ancestors, you, you, you talk a good bit about the reconciliation process uh in South Africa. Um Canada uh just you gotta get the book. I mean, we can’t, we can’t tell all these stories. I mean, I know listeners, I know, I know you love stories as much as I do, but there’s just not enough time to just get the damn book. Just go to decolonizing wealth.com for peace sake. You go right now. If you’re listening live, where are you Poughkeepsie Schenectady? Uh Nottingham Maryland just, just go to decolonizing wealth.com. Um OK, listening, you talk about uh em, em, empathic and generative listening, right? So, you know, often um when we, when we move through a process like this, we feel bad, we’ve apologized. Um The default sort of like dominant culture way of being is like, OK, I’m done with that. I’m gonna move forward. And so, but before you move forward and act, you just need to pause to actually listen, um, to listen and learn so to, to, to uh uh for, for nonprofits. Uh, you know, I ran a nonprofit. I’ve worked in philanthropy for 14 years when I asked nonprofits, what is the number one thing that you wish funders would do differently? The response is always, I just wish they would listen. Uh because there’s something about having resources, money, privilege and power. When we enter the room, there’s a power dynamic where we um automatically feel that we can uh control the airspace and we have an agenda and uh the nonprofits are gonna be responsive to what we want. And you know, that often is the case. But uh the, the best way to really build a relationship with folks where there is a difference in, in power and privileges is to actually stop and listen. Put aside your own assumptions and, and try as best you can to put yourself uh in, in their shoes to understand their experience and their history. So it’s just gonna make you a better person. Um I feel like listening is a human, right? We all want to be, we all deserve to be heard. And so that is um just something that we have to keep reminding folks who have privilege is to um to, to stop at times to, to also listen and to let others be heard. Put aside the White Savior Complex. Yeah. Uh Listening, we talk about, we talked about uh about that a lot on the show in terms of just donors and, and I know your next, your next step is, is relating versus being transactional. And that’s, that’s, that’s the beginning of a relationship, as you said, you know, listening, genuine hearing uh to w whether it’s donors or potential potential grantees. Um There, there’s a lot to be learned. So it goes back to the, the value of bringing uh representing the, the, the communities that you’re, that you’re serving. Um OK. So relation, you want us to, uh you want us to relate. Let me ask you, uh, you, you, you read, um how to win friends and influence people. You say dozens of times, you say dozens, I have trouble reading a dozen pages in a book. You’ve read one book dozens of times. Uh What, what, what, what do you take away time after reading, uh Dale Carnegie’s book dozens of times? Well, you know, I still have an original copy from that. I, um, I stole from the library of, uh my mom was a domestic worker and she was caring for a frail elderly man. Um, they had this vast library. So I ended up with this little book that you stole from an infirm. I know, I feel terrible about a book. It haunts me to this day. So this is a public, I didn’t even think to leave like 20 bucks or something on the table. I didn’t have it if I had it at the time. Um So hopefully this is my way of giving back. This is, this is my reparations for, for that, that wrong. But you know, and the one take away for me in that book uh is uh is really kind of connected to relating and listening. Um is when you’re, when you’re talking to folks, people just really want to be heard. So mostly you should listen. Um And if you actually just listen more than talk, people are gonna think that you’re a great friend like, wow, Edgar, that was that I had such a nice time with you. Um But even if I didn’t say one wrong, right? And so, yeah, it’s really about listening and, and letting others feel that they are important because they are um you know, we, I think people just feel so invisible these days that um just by giving people that moment of, of feeling heard and connecting with something that they are interested in. Um It’s just gonna really take you much further in building a relationship and, and stop the, the transactional, the, the transactional thinking. Um You have, you, you have an example of uh uh a uh oh and, and like building design, like office design, kitchens, you’d love to see a kitchen in the center of, of offices. Yeah. You know, so sort of like these ideas of like the colonizing virus, it infects every aspect of our community. So yes, even the way buildings are designed, um, especially buildings that are uh financial institutions, think about what banks look like when you walk in and with the, with all the marble and, you know, hard edges. Absolutely foundation offices where you have to go through five levels of security to get in as if we’re as if the millions of dollars were in the office. Right. And so we just, uh, through even how we design our offices and um you know, the way that they appear can be super intimidating for folks who are coming in who need access to resources just in, in terms of designing organizations more egalitarian, you’d like to see. Absolutely. So, uh one of the steps in the book is represent, and when you look at the uh the demographics of the nonprofit sector and um especially in, in foundations that part of the sector, uh we still have a long ways to go with diversity uh particularly when you look at the board of directors and the CEO positions, folks who really hold power in organizations. So what are the, what are the ideas that I put forth in the book is that foundations should have a requirement that at least 51% or at least 50% of their board should reflect the communities they serve. Uh This would drastically change what uh you know, shake up what the seats on the bus look like, but this isn’t this uh far from what is required of, of many nonprofits. Funders actually are, you know, requiring this, of their nonprofits that they’re funding. Um, and many go, um, organizations that receive, gover government funding, federal funding have these types of requirements that the folks who sit on the boards must be, um, folks who are benefiting from the services of those nonprofits. Representative. Absolutely. That’s a, that’s a stretch. 51 percent. It’s a stretch, it’s a stretch. But, you know, um, the, the conversation has uh, has been uh zero about it. So I figure, you know, if we put something, a bold vision out there to help us imagine what’s possible, maybe we’ll get a little bit further down the road and there are some examples. Uh you cite the Novo Foundation in the book, uh they have a women’s building that they’re, that they’re repurposing some old warehouse or something to turn into women’s building and, and the, the decisions are being made by, by women who are gonna be using the building. Absolutely. There’s some great examples of, of foundations and, and funds that are, um really, um putting these values into practice in their work. Uh Novo is, is a foundation that I really appreciate. Jennifer and Peter Buffett, the founders of, of the, the Novo Foundation wrote the forward to my. And uh they, um are folks that you, if you get to know them, you can see that they have done this work. Um and it shows up in how they give, they are a foundation that absolutely sits in community and listens um to folks who are impacted by, especially women and girls, which is an issue they, they really care about and they fund in a way that is responses to what they really need versus what the foundation’s agenda might be. Is it novo that funds for five years or seven years? Is it guaranteed? You, you cite this in the book, no matter how much trouble you’re having in year 123, you’re going to be funded for five or seven years for their initial commitment. Right. Right. And, and that type of long term commitment is uh you know, something that, that is the best type of funding, you know, um folks can be, you can focus on building a relationship versus, oh, I’ve got to meet these certain objectives so I can keep getting this money year after year. And so to be relieved of that, that pressure of thinking about where am I gonna, you know, how am I gonna pay these salaries next year? Um Really allows folks to have the freedom to think about the actual work that they’re doing in communities and, and planning and, and can plan instead of it being one, only one or two years. Um And so we kind of mishmash together, you know, relating and representing um investing. So investing is really a call to philanthropy to think about using all of its resources for um for, for the public good, right? And so uh we are not uh going to be a, a AAA sector that achieves equity that, that is really moving the needle on issues if we’re supporting uh with the 5% in our right hand, really good work, uh you know, mission related work. But in our left hand, we are investing 95% of our resources in um industries and causes that are extractive that are, you know, really canceling out the positive of, of our resources. So, you know, there are great foundations like the Nathan Cummings Foundation, for example, who just recently declared that 100% of their assets, their entire corpus is going to be used um in support of their mission. And again, other examples in in the book. And uh we just have about a minute or so before we have to wrap up actually. Um so talk about your final step, which is the final step is repair. Um All of us who are philanthropists are givers and as we’re getting close to the end of this year, uh we are all philanthropists um supporting um nonprofits in our communities. Think about how we can use money as medicine, how can we give in a way that is helping to repair the harm that has been done um by colonization in, in, in this country. And so think about looking at your personal portfolio are you giving to at least one organization of color um to support grassroots leadership. So reach across um and support folks who may not look like you invest in ways that are helping to unite us uh versus thinking about some of the traditional ways of giving that have not been uh you know, along this lines of thinking or exercising these types of values. OK. So I’ll give you the last 30 seconds uh uh uh in the way that uh the, the way I learned that uh natives are the original philanthropists was by what you, what you talk about your mom. Yes. So, you know, I think a lot of giving, when we look at giving in this country, the biggest philanthropist philanthropist are folks who are giving the most uh highest percentage of their incomes, incomes are actually poor people. And so I do talk about my mom in the book um who um was uh you know, is actually um very low income and, but yet she gave um to our community and, and had it ran a ministry out of our church to support Children ministry. You just gotta, you gotta get the book, you gotta read the ministry. And so it’s like giving of time, treasure and talent, not just resources. And so all of us who are caring for our communities in ways that are um you know, through love is uh we’re all philanthropists, get the book, go to decolonizing wealth.com, Edgar Villanueva. Thank you so much. Thank you for having me on Tony. Real pleasure. Next week, zombie loyalists with Peter Shankman from the archive. If you missed any part of this weeks show, I beseech you find it at Tony Martignetti dot com were sponsored by donor box. Outdated donation forms blocking your supporters, generosity, donor box, fast, flexible and friendly fundraising forms for your nonprofit donor. Box.org. Our creative producer is Claire Meyerhoff. I’m your associate producer, Kate Martignetti. The show, social media is by Susan Chavez. Mark Silverman is our web guide and this music is by Scott Stein. Thank you for that affirmation. Scotty be with us next week for nonprofit radio. Big nonprofit ideas for the other 95% go out and be great.