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Duitz welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent of your aptly named host tony martignetti you’ll recall last week it was planned giving fund-raising and a gift planning conference that was richard slutzky, co author of thriving in the comet’s tail. He explained his ideas for fund-raising as the us emerges from recession, his insights apply to your long term and immediate fund-raising work. Then in the studio, i had john bacon and alexandra brovey they’re officers of the philanthropic planning group of greater new york, and they talked about the group’s conference, the philanthropic planning symposium on may sixteenth this week, a conversation with craig newmark and everlasting endowment. The founder of craigslist, craig newmark, has created craigconnects, ts dot or ge for non-profits and those who support them. We’ll talk about the site it’s areas of support and what keeps craig out that night around charities, then a pre recorded interview with kathleen rittereiser kathleen is the co author of foundation and endowment investing. We’ll talk about strategies used by big endowment managers that you can take home to keep your endowment safe and invested, right, as always, big non-profit ideas. For the other ninety five percent, you’re cfo and you’re bored, should be listening to that interview and on tony’s, take two in between my guests. Well, you are media sponsors for the next-gen charity conference coming up in new york city in november. We did that with them last year, which was the inaugural conference, and i’ll talk a little about that. I’ll be interviewing conference speakers for this show at the next-gen charity conference. Onda also is your email safe and sound. Those topics at roughly thirty two minutes into the hour on tony’s, take two. Now we take a break and when we return, it’s a conversation with craig newmark, stay with me. You’re listening to the talking alternative network. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call us ed to one, two, nine, six, four three five zero two for a free consultation. That’s lawrence h bloom two, one, two, nine, six, four, three five zero two. We make people happy. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com zoho welcome back to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m joined now by craig newmark, a founder of craigslist. He’s, originally from morristown, new jersey, now lives in san francisco, where he’s calling from and i’m very glad that his new venture, craigconnects dot or ge, brings him to the show. Craig, come hey, i’m really glad craig say something else, would you have you cut out a little bit? Thank you very much. Glad to have you it’s a pleasure craigconnects dot or ge? Not even quite two months old yet. What will people find when they go there? At this point, it’ll find me basically standing up for non-profits on related causes that i believe in beyond that there’s, some discussion on how i can move on and do a better job from there. And why did you start? Craigconnects well, for maybe ten years, i’ve been solely supporting non-profits and so on sometimes in trivial ways, sometimes in a substantive ways. Several months ago asked someone to lift him in the eye supported, i thought maybe twenty or thirty closer to one hundred out, you know, things like that get my act together. So this is a more organized way. Tio support your non-profit interests. Yup, i want listeners to know that you can call and ask kruckel in about craigconnects dot or ge and the number to call is eight seven seven for eight xero for one, two, zero, eight, seven, seven for eight xero for one to zero. What are some of the non-profits that air highlighted on craigconnects now, craig? Well, there’s a number of groups for example, consumer reports, which actually does a really big job for assault totally in a you know, appliance reviews, but others, and then there’s the iraq and afghanistan, veterans of america, there’s, sunlight foundation, bothersome groups i work with askanase it’s a pretty long list, i’m trying to re balance it and figure out what makes sense because i got to do a better and better job. Okay, and how do you decide which non-profits will be highlighted on craigconnects sometimes i’m just winging it if they’re doing something that i can actually understand on somehow make sense to me that i get involved, i should make it more methodical, but right now, it’s based on the help from advisers and also experience. Ok, yeah, you do have advisors. I know. Oppcoll the some of the sites that you are, some of the organizations that are highlighted there, i see you’re listed as either an advisor to them or a boardmember to them. Is there any compensation involved in your relationship with those organizations that are highlighted no compensation, except for some occasional reimbursement of travel expenses? Actually, my net causes significant because, for the most part, in my own way, okay, i just i want people to know, you know that there isn’t a quid pro quo thereabout, that the with with the charities that you’re highlighting among the group that you’re highlighting, they fall into certain areas, right certain support areas. Uh, they, too, generally speaking, like i’m trying to help out military families and veterans. I’m also doing some work with non-profit news outlet, trying to help but with the future of journalism. Do you want to mention a couple of the other support areas? Well, there is the whole idea of government accountability and transparency. There’s, the idea of trying to get fresh water and sanitation to the developing world. There’s, the subject of mideast peace, specifically between israel and palestine. The list is larger than i’m letting on, because i’m still learning my way around. I’m out of my depth, but that’s a way of life for me now, living out of your comfort zone. You mean, yeah, that’s, the idea. I’m a nerd. I’m more comfortable, sometimes with systems, but i got to get out there. All right? And since you said that, i want to thank you for doing a live interview, i know you don’t do too many live interview, so this is really very, very special for us. So thank you for thanks for being on the show again and doing it live. You’re are you envisioning anything that helps donors that wantto support thes charities that are highlighted. The biggest efforts that i’m involved with are with those non-profits which themselves help people figure out what non-profits are legitimate, and i need a contribution, or so that includes charting navigator. It includes guide star and great non-profits dot or ge. Yeah, why don’t you say a word about great non-profits dot or ge? Well, grayce non-profits dot org’s is kind of a yelp for non-profit specifically, you can go on there, check out the non-profits you support and, you know, add your voice that support. Alternatively, if you’re looking for good ones to support boat coming out, i’m great. You can see what other people are thinking. So it’s ah, review board, essentially for non-profits good, positive and negative. You got the idea on that, like yelled like yelp, and that was and that’s great. Non-profits yeah, i’m concerned that there’s a lot of non-profits out there, which can tell a good heart wrenching story. They’re cashing your check, but it’s taking a result, there’s, not a lot of them out there that they make a lot of noise. Okay, we’re going to take a break right now. When i return, craig newmark will stay with us, and we’ll we’ll follow up on that thought about telling your story and making some noise. This is tony martignetti non-profit radio co-branding think that shooting getting ding, ding, ding, ding, you’re listening to the talking alternate network e-giving. I think. Cubine are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let create the future. You dream of two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. In-kind are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics. Politically expressed buy-in, montgomery, taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com looking to meet mr and mrs wright, but still haven’t found the one i want to make your car relationship as fulfilling as possible. Then please join us, starting monday, may second at ten am for love in the morning with morning alison as a professional matchmaker, i’ve seen it all. Please tune in and call as we discuss dating relationship and more. Start your week off with love in the morning with marnie alison on talking alternative dot com. Talking alternative radio twenty four hours a day. Durney i’m with craig newmark, the founder of craigslist, but we’re talking today about his newest venture craigconnects dot or ge craig, you’ve established a name for yourself in social media. What advice do you have for small non-profits around social media? Craig r have we lost? Greg? We have lost greg oh, okay, so it’s time to do a little tap dance bonem so happens that today is ah, blue pedicure challenge day, and what that means is i fulfilled my side of the bargain. Ah bunch of high school friends challenged me too. Um get my toes painted blue if they could get me to three hundred likes on the show’s facebook page, and they had to do that within just a few days and they did it, and this morning i got my blue pedicure, so in the studio were wearing my money blue pedicure, and if you were listening to the previous show, the divorce, our with larry bloom, you’ll understand why he said that i’d be talking about my toes today. That’s if you were listening, then you know that’s what he was referring to dahna we’re going to be trying to get craig mark back. Talking about his sight craigconnects dot org’s, you may want to go there, take a look, you’ll see how he blog’s about charities that he and his advisers find interesting and valuable, and we should be a minute or so to get craig back. But if you go to craigconnects dot org’s, you’ll see the format of the site, and as craig said, it is evolving. Ondas i you heard me ask him it’s only less than two months old, so there is some parallel, i think, between the way craigslist got started and the way craigconnects is getting started, and shortly i’ll have a chance to ask him about that. Um, but you’ll see that he blog’s about, um, charities that he finds interesting and doing good work, and they’re in these seven support areas. He mentioned a couple of them veterans and news outlets and government transparency and accountability. Those air just a couple of the support areas there are there are seven altogether that the site will highlight. Andi should, as i said, we should have craig very shortly. Hyre you know that the second guest in this show will be kathleen rittereiser and that’s a previously recorded interview and i’ll be talking with her about endowment management. The book that she co authored is foundation and endowment investing that will be in the second half of the hour. And i understand we have craig mack right now, craig, you with us? I’m here. Okay, sorry about that. I don’t know what happened. You didn’t hang up on us, did you? Okay. All right. You know a thing or two about technology it’s not always a hundred percent that’s. How you know the show is live because things go wrong before the break we were you started to mention telling this story, getting non-profits out there to tell their story. What’s your advice for small and midsize non-profits around the more established social media you know, twitter, facebook people are interested in your opinion because you’ve made a name in social media. Well, i’ve only learned a few things i can and sometimes the hard way. Those were the best learned lesson. Yeah, they have to be prepared to engage with their their community. Not only the kinds they serve, but the people who might be making contributions of some sort. You have to have a careful brief message. They gotta be framed, right? And then you just got to keep delivering it, maybe every day or so, and you can use twitter and facebook to do that. The deal is have a nice, simple message. Keep it short, get it out there, and then get out again. And what if the non-profit is really small? I mean, suppose it’s just a couple of people in the office and their concern is about abila, you know, keeping up a facebook page or twitter stream the deal is that they may have to put in the extra time to keep getting the word out. It’ll be tough, and this kind of engagement is more than a full time job, but it means you’re talking with people. You could build your own schedule and do it makes sense get a good network going, and they’ll shoulder some of the burden for you because people will start to carry on a conversation with you and they’ll start teo contribute oppcoll the deal is over time, just stay for riel over time you build up genuine for network word of mouth that works, even cover the patient and committed to it for years. And i think there’s ah, really direct parallel between what you’re suggesting for small shops on the way craigconnects is rapidly evolving and the way craigslist got started. Uh, yep, the deal is that right now, bright connects is a small shop arm online what seems like a ll the time and keep plugging away. If i’m in front of a system of any sort, i’ve got. E mail, facebook and twitter windows open. And just the the advice that, you know, things evolve over time, right? I mean, you jumped in as you said, not really knowing what this will look like, right on my right. You don’t really know what it will look like, say, a year or two years from now that’s my whole history, it applies to craigslist. It applies the non-profits stuff i’m doing, sometimes you get involved, then you listen and act on feedback and then be prepared to repeat that. Listen and then action, michael forever. Yeah, excellent and that’s. What small non-profits small charities khun do around their own social media? Yeah, it’s true of small and argument large organizations of all sorts, it applies to premature it. You know, we did get a question in advance from this one came from the innovative fund-raising and philanthropic innovation network forum on linkedin out the name of the organization writing is de blam e integrated rescue project craig and they ask, how can i fundraise best online? I’ve written many blog’s spread the word on social network sites, they ask, how is fun? Is online fund-raising best done by big agencies? Bonem i no authority on this, what i’ve observed working, it is simply like i mentioned before. He’d have to cultivate a network long term. It has to be for real need to get the word out to people. And if they believe in what you’re doing, they get the word out to other people and that’s what i understand. It’s, bottom up, food stuff, yeah, bottom up, grassroots, that’s, how craigslist started, and that’s, what you’re trying to do with craigconnects can you? Can you say a little more about why you think that’s, the way to get started? Well, to be real honest, i don’t understand a top down stuff. It doesn’t seem terribly effectively that tradition sometimes means you do an event. One day he gets covered the next and forgotten the day after. Well, i know is, like a very small way, eh? Day after day after day. And as a non-profit is thinking about their own social media work there, they can be thinking about the ground up, the grassroots process, using maybe people who are working for them, or people who are getting ben it, benefiting from their services. All the above, people are frequently willing to pitch in and lend a hand. Yeah, and that comes from a love of that charitable mission. Then we’re just trying. Teo seems like to move online. You’re just tryingto extend the passion that people feel for a mission and have them help it in a different way. I agree. You don’t need teo work with the people who will do. And the idea is that people i’m hoping we’ll get in the habit of one obstacle is donorsearch. Because, you know, in totality, we’re asking for people’s time and money in different forms. Yes. And your e think you might have cut out a little bit on the phone, but your concern was about donorsearch fatigue. Is that what you said? Okay, yeah, talked about dahna fifteen, meaning that, well, increasingly and subsectors, people are spending less money or time on non-profit because they don’t know when they’re well, non-profit is legitimate or a fake, and how is craigconnects goingto help people make that distinction? Well, the theme is to work with those non-profit, which help evaluate other non-profit like charity navigator, you know, guide, star and great non-profit like i mentioned before, i’m trying to help them in small ways, like helping them prevent people from gaming systems. Yes, and then i’m pointing large numbers of people to those sites. I’m with craig newmark he’s, the founder of craigslist. We’re talking today about his newest venture, craigconnects ts dot or ge. Craig, if if a non-profit wants to be highlighted on craigconnects, how could they do that? The beginning of the process is to go to craigconnects start or flash, connect and enter your information in there. But frankly, we’re still working on a system to work on this because we’ve gotten farm or requests that than originally anticipated. I thought maybe ten it’s been hundred, and i think the part of the answer well involved from crowdsourcing, but we wanted something that actually work, and we haven’t okay now here on tony martignetti non-profit radio, we have jargon jail, and i don’t want you to be sentenced to jargon jail. Just please explain what crowdsourcing is, okay, and then then you’ll be out of jargon. Yeah, the idea that you could get lots of people to get involved our mind with something to produce a better result that may be a few experts working together would get. The idea is that you put something online and you used some of these discussion tools that vote up the better idea and vote down the less attractive. It only works if you get hundreds or thousands of people involved, but this is what we call democracy. Yes, online democracy, thank you, reprieved from jargon jail. So of course, and so you’re envisioning, maybe some kind of crowdsourcing feature on craigconnects right now, we’re talking about that, because the deal ultimately is that the only way to do the right thing for folks is, too. Hey, what is the right way? That’s, the history of craigslist? Yeah, what, what the right thing to do is you get feedback, then you act on it, and then you ask again. Greg, we have to leave it there. I want to thank you very much for being on the show. My guest is been craig, mark found of craigslist talking today about craigconnects dot org’s for non-profits and those who support them. Craig you very much for being on the show, it’s been my pleasure. My pleasure to maybe i’ll see you at the nextgencharity conference. I believe you were speaker there aren’t you this year. That sounds right. Okay, in the distant future. There it is, it’s in november. Thank you again, craig. Well, we’ll take a break now, and after this it’s tony’s, take two. Well, i already covered the blue pedicure a challenge, but we’ll talk about being media sponsors for next-gen charity and is your email safe and sound that’s on tony’s. Take two after this break. Hyre you’re listening to the talking alternative network. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed hi and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one eight one eight, three. Conscious consultant. Helping conscious people. Be better business people. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com durney hi there and welcome back, it’s, time for tony’s take two at roughly thirty two minutes after the hour, so we’re goingto be media sponsors for the next-gen charity conference. You heard me talk about that just at the end of my interview with with craig newmark is he’s a speaker there this year? It’s november seventeenth and eighteenth in new york city. I’ll be interviewing speakers for this show probably be backstage doing the interviews, and then you’ll hear them on this show. You can register for the nextgencharity conference or get information at next-gen charity dot or ge and on my block this week. The post is is your email safe and sound. I have a guest blogged from howard globus of tian demand, who shares some techniques for keeping your email safe from snooping and other nefarious activities online. That post hey talks about proper passwords, security attachments and firewalls and some other things and that’s this week’s block post is your email safe and sound on my block at m p g a d v dot com or you can always just google my name and find me that way that is tony’s take two for friday, april twenty ninth very happy now have a previously recorded interview with kathleen rittereiser the segment is called everlasting endowment, and we’re going to go to that right now. I’m joined now by kathleen rittereiser kathleen is co author of foundation and endowment investing, and we’re going to be talking about managing your endowment. Teo, get the most from it and keep it most safes. Kathleen, i want to welcome you to the studio. Thanks, it’s. Great to be here. What did you do to research this book? Foundation and endowment investing. How did you go about finding out what big non-profit organizations are doing with their endowments? Well, the first thing that i did was i teamed with the co author larry coe shard, who is the chief investment officer of georgetown university. And if the book came about because it was larry’s idea when he took over as the chief investment officer at georgetown, he was looking to learn from other successful chief investment officers about how best to manage an endowment in a more complex acid and buy-in asset allocation environment. So he had the idea because there was no such book came to me because i was calling on foundations and endowments as an asset management sales person, so the two of us teamed up, and what we did was we researched who are some of the most successful institutions and investors in the foundation and endowment community. And then what we did was approached them and asked them to be in the book. So the book is actually profiles of leading chief investment officers. Each you tell their story, share their strategies and give advice for how to manage large endowment portfolios. We also include some history and some basic ideas about how to go about managing endowment portfolio. In other words, like, what are the things the basic things to dio if you are the chief investment officer or overseeing an endowment foundation, my portfolio and when i first brought kathleen on, i was stumbling through some papers to find the bio that i wanted to have in front of me when she came on. So i’m going to share that with you. Now the full title of her book, co authored with larry coe shard, is foundation and endowment, investing philosophies and strategies of top investors and institutions and the two of them also have a second book, more current top hedge fund investors, stories, strategies and advice. Both books are available at amazon dot com. I also want to share with you that kathleen is a director of investor relations with concordia advisors and that’s in new york city based hedge fund. She has over twenty years experience in sales, marketing and relationship management roles with leading asset management, research and brokerage firms, which she was just saying, and i apologize that i didn’t have the paper in front of me, but i wanted to move us along rather than be stumbling along. What types of organizations did the people who you and your co author interviewed work for the majority, it was basically split half endowments is a large university endowments and also some large foundation. So thie institutions included the hewlett foundation notre dame investor, which was is led by a woman named alice handy, who used to run the university of virginia endowment. Mitt is representative george washington university, the kaiser foundation and morgan creek capital management. And the idea was to really kind of showcase well known, well regarded chief investment officers in who worked in a variety of different types of non-profit institutions we also showcase. I mentioned mark yusko from morgan creek capital management. We also showcase the kind of burgeoning trend in foundation and endowment management, which is outsourced ceo. So that’s, what investor is and so it’s morgan creek capital management, and in a few minutes we’re going to talk about the outsource seo chief investment officer, a trend that you see but let’s start with some of the lessons that small and midsize non-profits can take away from what you learned from these very big endowment managers. Absolutely. I think the most important lesson from all of these foundations and endowments and it’s true about any endowment portfolio, is that the long term perpetual time horizon allows thie investment manager or the person overseeing the portfolio to take a long term investment perspective and to have a more value orientation, meaning that they can often make investment decisions relatively early on by things at very cheap prices and hold them for a long period of time. So it’s actually it’s actually an approach that’s kind of a longer term buy-in hold approach. The other thing that’s important is the quality of the governance and the fiduciary oversight of the portfolios that most all of the institutions that we spoke, teo, there is a chief investment officer who has full responsibility for the portfolio in making decisions, and the boards and the governors are really just for oversight and getting involved in asset allocation. So and the other lesson, which is really kind of a trend that started many years ago in the foundation and endowment community and it’s. Still continuing with these long term portfolios is the idea that if you can take a long term approach, you can invest in less liquid types of securities, which led teo, many of them being successful by making investments in alternative investment portfolios such as venture capital, private equity and hedge funds. Now our audience is small and midsize non-profits so some of this i want them to be ableto benefit from, and i know in terms of quality of the oversight and transparency that that’s where i think we’ll get into the sort of outsourced ceo movement because i think the majority of our audience probably doesn’t even have a chief investment officer. They probably do have a financial officer, but not an investment officer, right. This lets a little more about this. The long term view. Um, i hear that all the time in, in terms of personal investing, your time horizon. What is there a recommended time horizon for investing endowment? Well, i think you know, one of the well known endowment ceos who’s written about this subject is david swenson from yell so he he looks at it as forever so that’s, you know, officially perpetual is forever. Realistically, most endowments, i think, need to look more like ten to fifteen years out rather than one to two. Now many foundations in particular, i know, have different types of liquidity constraints because for the most part, they need thio spend five percent of the endowments value every year, so they have different kind of liquidity considerations. But if this is a large pool of capital, even a good size pool of capital, it makes sense to be able to put some assets in your allocation, which have a longer term horizon for paying off. So that’s kind of where something like a long term real estate investment or venture capital or a hedge fund that might have be investing in distressed assets or something that has a longer term time horizon for when the payoff will happen, will allow the endowment, the foundation to be able to hold on to the principal and preserve that principle for the life of their organization, but then also get the income that they need thio manage operations or give grants during during the shorter time periods. What this does lead into is the idea, which i think was one of the key investment ideas or the investment thoughts that come out of talking to foundation and damn achieve investment officers and is also supported by research in the industry is the idea that asset allocation is really important. So whether you have a five million dollar endowment or you have a five hundred million dollar endowment, how you decide to allocate your assets is very important in how it relates to the mission of your organization and what your organ it organisations needs are. But asset allocation remains the key way tio earn returns overtime. My guest is kathleen rittereiser, co author of foundation and endowment investing, and we’re talking about everlasting endowment keeping your endowment lasting for forever for your organization’s life. But, kathleen, what can non-profits with maybe a five or six figure endowment do in terms of long term investing? I think i think an organization like that a lot of it depends on the tradition, the governance, as i mentioned earlier, do they have a committee that is involved? If not, i mean, i think this does lead into the question of outsourcing and one of the trends that we identified and we spoke to some of the people that run outsource ceo organisations, is this idea of really just taking the portfolio and turning it over to an outside manager full time? Because what they do is they pull assets with a lot of other foundations and endowments. So you get a an economies of scale that is that’s really related more toward being able to pull your assets with other organisations, to make the outsource cia a more substantial investor in alternative portfolios, and allows you to get the benefit of really professional asset management experience, especially with that specialty and foundations and endowments and i think that’s the that’s probably the key thought is that there is there’s a lot of expertise and these portfolios are very complicated metoo manage as it relates to an alternative, so that would be why i would suggest that if you are a smaller size, the best way to approach it is to work with some kind of outsourced ceo organization, and they’ll take funds that air just in the five or low six figures a seventy five thousand dollar endowment, it depends, probably a seventy five thousand dollars and damn, it would be would be would be difficult. However, i believe that there’s more and more new types of products coming onto the market. So there’s a lot of different models in investor, which i mentioned earlier, is kind of is a custom model. Morgan creek has a fun that’s available through the merrill lynch platform, and there are a number of other types of organizations that are offering more like a fund-raising khun just invest in a fund rather than hyre and outsource ceo so there’s there’s a lot of different models that are coming to the forefront and a lot of larger asset management organizations. Tia cref recently entered this market, so i think that that will be an option that’s going to be available for even the smallest size endowments, and it certainly sounds like it is now available if an organization has maybe seven hundred fifty thousand dollars or a million and a half dollars, and even in those low six figures, definitely right? Absolutely yes, absolutely. And they’re not going to wantto put, i would think the whole endowment with outsourced chief investment officer, would they? Actually, they will. I mean, some of the largest one of the largest outsourced situations is a company called perella weinberg, and they recently took in the entire university of colorado endowment, which is eight hundred million dollars. What they did then was they teamed up. They took the ceo as well. So the university of colorado chief investment officer went over and rant it’s now running the perella weinberg portfolio. But that’s that’s, probably the biggest move that’s been made so and they will, an organization that doesn’t have the resource is or the time or the expertise to be running the endowment themselves or and they usually have a smaller endowment will actually make the decision to outsource the whole portfolio. They’ll have oversight and governance and be able to be making asset allocation decisions and decisions related to how the endowment is used for their mission, but they will actually hire someone to run the whole portfolio for them. We only have about thirty seconds before the break. What about the resistance that on this is ego that the board is now giving up authority? I’m not sure that i have thirty seconds. I think that’s a thirty minute answer it’s definitely an issue. And one that one that i would say that my my motto now is there is no d i y in fiduciary and that fiduciaries need to start to learn. I think a little bit more how the world of investments is changing and to start to think about what is really the right fiduciary decision to make and it’s not my ego, but it’s, what is right for this institution, we’re going to take a break. My guest is kathleen rittereiser, co author of foundation and endowment investing. I hope you’ll stay with us co-branding think dick tooting getting ding, ding, ding ding you’re listening to the talking alternative network duitz e-giving you think xero good, is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call a set to one, two, nine six four three five zero two for a free consultation. That’s, lauren, say, bloom two, one two, nine, six, four, three, five zero two. We make people happy. Is lack of capital or credit keeping you up at night? The show me. The money conference is coming to the roosevelt hotel, forty five east forty fifth street in manhattan on november third. This’s the best business networking opportunity to meet potential investors and lenders, and get answers from our expert panel of business and financial advisors. From or information, call six four six six one nine eight zero nine. One are online at rose otto accounting that’s r o s a d o accounting, dot, com slash. Show me the money. This is tony martignetti, aptly named host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent. Technology fund-raising compliance. Social media, small and medium non-profits have needs in all these areas. My guests are expert in all these areas and mohr. Tony martignetti non-profit radio friday’s one to two eastern on talking alternative broadcast. You’re listening to the talking alternative network. Oh! Like the voice on that last commercial very, very soothing, sort of mellow voice. I hope you’re enjoying it, too. I’m joined by kathleen rittereiser she’s, the co author of foundation and endowment investing. Kathleen, if people have questions, i’d like to follow-up how could they get in touch with you? I have a website, which is kathleen rittereiser dot com, and my email address is kathleen with the c c a t h l e n at kathleen writ that’s c a t h l e n r dot com thank you, and you’ll of course find her name on my my block, where the guests are all listed. That’s m p g a d v dot com you can also see her name on the facebook page for the show, and i’ll tell you that her last name is spelled r i t t e r e i s e r kathleen rittereiser ands kathleen with the sea before the breakout thing we’re talking about this outsource chief investment officer trend and how small and midsize non-profits khun take advantage of it? What about the due diligence? What should’ve non-profit be looking at when there and what should the process be for hiring the right outsource ceo? Well, it’s, interesting, because i think a lot of smaller foundations and endowments get in, as we were talking about earlier, that the investment committee gets excited about picking managers, and often we’ve seen that they don’t have the right experience to be picking individual manager. So picking an equity manager or bond manager where and the process is actually quite similar except what you’re doing is making a decision that’s more of a one time, longer lasting decision. So there is some extra pressure in that case. However, i mean it’s pretty much doing the kind of research like coming tio my website or even, you know, sending meet so, you know, doing research on the internet, there is a block called and dominant bester that writes about endowment issues. I write about these issues, and i’ve spoken about them, so it is working it’s kind of doing some initial legwork. Teo, look at the models on dh think about what’s the size of my endowment. What what are we comfortable with in terms of giving up the level of authority? Some organizations have made the decision that they’re willing to turn over the whole portfolio, others might go somewhat piecemeal into it. Organizations that are working with consultants as such as cambridge may decide to work with their consultant organization to get referrals or also to transition into a more outsourced type of model. So, you know, obviously the first part is research and and i’ll admit that because this is kind of a newer type of investment approach, there are fewer let’s, say, syndicated sources of information about this but it’s becoming more and more prevalent. So even a google search on outsource cia well, i think lead you to some good resource is and again there’s information available on my website and even contacting me directly, i’m happy to help people with this also, i would say that the next phase is really due diligence like you would do with the manager thinking about what your organization’s needs are what who were the people that you want to be working with, what’s their business model inter? Are they a single fund? Are they doing something custom and then and then spending time with these investors? Tto learn about their process and how they’re going to work with you so i think it’s ah, it’s a can be a longer term process, you know, it’s not a decision that you should make over the course of a quarter. I would say that if you’re really seriously taking turning over your whole endowment to an organization that it probably should take at least six months to a year from start to finish, to be making that kind of going through the process and making that kind of decision, what about the oversight we have just about a minute left, once once a now outsource ceo is hired, where’s what’s the board’s responsibility, and they still are fiduciaries to the organization what’s the oversight of the outsource the board is still is still different. You, sherry, and basically the same kind of the oversight is the same oversight that they would be responsible for if they had a ceo or if they had a number of managers that were reporting to a committee member. I think what happens is what and what i’ve heard from organizations that have made the transition so far, the oversight is actually much more productive in hyre level variation of oversight in other words, they’re involved in strategic issues of the institution and ask that allocation issues rather than nitty gritty, so it’s basically that the oversight is brought up a level in terms of it’s strategic import for the foundation or endowment. My guest has been kathleen rittereiser she’s, the co author of foundation and endowment investing, which you can find at amazon dot com. Her website is kathleen writ dot com that’s kathleen with c and r t dot com kathleen one thank you very much for coming to the studio today. Thanks for having me. It has been my pleasure and my thanks again for kathleen and letting me use that pre recorded interview and also, of course, to ah craig newmark, my first guest today next week, it’s karen perry. Karen is the president of event journal, and we’ll be talking about event sponsorship fund-raising how to get sponsors and how to recognize them when they support your special events. I’ll be in boston this weekend. If you’re attending the opera conference two thousand eleven, you’ll see me speaking about planned e-giving there on dh, that is, yes, that is tomorrow. Actually, you can keep up with what’s coming up on tony martignetti, non-profit radio sign up for our insider email alerts on the facebook page you’ll also see the information about the blue pedicure challenge on the facebook page, including video, which are becoming in a day or two, and while you’re there, please become a fan of the page. Click like you can listen to the show on itunes subscribe listen anytime on your computer smartphone tablet device of your choice, and you’ll find the show’s itunes paige at non-profit radio dot net, the creative producer of tony martignetti non-profit radio is claire meyerhoff. Our line producer is sam liebowitz he’s, also the owner of talking alternative broadcasting. Our social media is by regina walton of organic social media and a special thanks to regina for securing my guest, craig newmark today that was all her doing. This is tony martignetti non-profit radio. I hope you’ll be with me next week when my guest to be karen perry that will be friday one p m eastern here at talking alternative dot com, which is, of course, always talking alternative broadcasting e-giving didn’t think that shooting getting ding, ding, ding ding you’re listening to the talking alternative network waiting to get into thinking. E-giving duitz are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way look forward to serving you. Do you love movies, then join me and share your pains about them on the radio. This is mike, a movie fan like you, starting made tent. Join me every tuesday night at six pm for my new show movie time on talking alternative dot com. Call me live or email me at movie time radio. At gmail dot com. We’ll talk about all the blockbusters whose the best director and which movies air overrated, among many other topics. Join me for movie time. Tuesdays at six on talking alternative dot com. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call us ed to one, two, nine, six, four three five zero two for a free consultation. That’s lawrence h bloom two, one, two, nine, six, four, three five zero two. We make people happy. Do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? Mission one on one media offers a unique marketing experience that will set you apart from your competitors, magnify your brand exposure and enhance your current marketing effort. Their services include video production and editing, web design, graphic design photography, social media management and now introducing mobile marketing. Their motto is. We do whatever it takes to make our clients happy. Contact them today. Admission one one media dot com. You’re listening to talking alt-right network at www dot talking all dot com, now broadcasting twenty four hours a day.