Tag Archives: DAF

Nonprofit Radio for November 13, 2023: Fundraising 401

 

Laurence PagnoniFundraising 401

That’s Laurence Pagnoni’s latest book. When this first aired, it was his new book, but Laurence’s strategies and tactics are timeless. It’s a series of masterclasses for all levels and a collection of revelations he gained over 35 years in nonprofit management and fundraising. (This originally aired May 29, 2020.)

 

Listen to the podcast

Get Nonprofit Radio insider alerts!

I love our sponsor!

Donorbox: Powerful fundraising features made refreshingly easy.

 

Apple Podcast button

 

 

 

We’re the #1 Podcast for Nonprofits, With 13,000+ Weekly Listeners

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

Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.

Nonprofit Radio for January 9, 2023: Gene & Amy’s 2023 Outlook

 

Gene Takagi & Amy Sample WardGene & Amy’s 2023 Outlook

Our esteemed contributors, Gene Takagi and Amy Sample Ward, reveal what they’re thinking about for the New Year. We’re talking about Twitter, donor advised funds, fiscal sponsorship, and illegal activities. Gene comes to us from NEO Law Group, and Amy is CEO of NTEN.

Gene Takagi

 

 

 

 

 

Listen to the podcast

Get Nonprofit Radio insider alerts!

 

I love our sponsor!

Turn Two Communications: PR and content for nonprofits. Your story is our mission.

 

Apple Podcast button

 

 

 

We’re the #1 Podcast for Nonprofits, With 13,000+ Weekly Listeners

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

Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.
Email me directly if you need to.
View Full Transcript

Transcript for 622_tony_martignetti_nonprofit_radio_20230109.mp3

Processed on: 2023-01-07T18:13:51.975Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2023…01…622_tony_martignetti_nonprofit_radio_20230109.mp3.605915541.json
Path to text: transcripts/2023/01/622_tony_martignetti_nonprofit_radio_20230109.txt

[00:02:06.02] spk_0:
Hello and welcome to Tony-Martignetti non profit radio big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast, Happy New Year. I hope you enjoyed your time off. I hope you’re looking forward to our New year and I have more on that in in Tony’s take two. Oh, I’m glad you’re with me. I’d suffer with sal pendulum fractious if I had to hear that you missed this week’s show, Gene and Amy’s 2023 Outlook, our esteemed contributors, Gene Takagi and Amy sample Ward reveal what they’re thinking about for the new year. We’re talking about twitter donor advised funds fiscal sponsorship and illegal activities. Jean comes to us from neo law group and AMY is ceo of N 10 on Tony’s take to take in this new year. What a genuine pleasure to have both Gene Takagi and Amy sample Ward with me us together. Substantively, it’s not just 1/50 anniversary show. No, this is not the 650th show. This is not july of 2023 Gene and Amy are with us to talk substance together and cross talk as well, you know them, but they are esteemed contributors and they are do their proper introductions, jean is our legal contributor and managing attorney of neo the nonprofit and exempt organizations law group in san Francisco. He edits the wildly popular nonprofit law blog dot com and is a part time lecturer at Columbia University. The firm is at neo law group dot com and he’s at G. Tac. Welcome to the New Year’s show, Gene,

[00:02:13.49] spk_1:
thank you Tony great to be here and great to be here with AMY especially,

[00:02:34.00] spk_0:
absolutely yes, a genuine pleasure with AmY sample Ward, who is Ceo of N 10 and our technology and social media contributor, their most recent co authored book is the tech that comes next about equity and inclusiveness in technology development. They’re at AMy sample Ward dot org and at Amy R. S Ward, Amy, Happy New Year! Welcome to the New Year’s show.

[00:02:42.26] spk_2:
Thanks. It feels like maybe we’ll revisit the intro if you’re saying our twitter handles and then we’re about to talk about what’s happening over at twitter. But you know, that’s all part of what’s to come and

[00:02:54.58] spk_0:
absolutely could end up being uh, mastodon.

[00:02:58.61] spk_2:
We’ll

[00:03:08.98] spk_0:
see about that. Absolutely. All right. We, um, we are going to start with Gene, um, to talk about Gene, you’re concerned about some, some legislative potential changes around donor advised funds.

[00:04:09.26] spk_1:
Yeah, I mean, it’s the donor advised fund area is probably one that most of your listeners are kind of familiar with because they’re the fastest growing area of charitable giving over a trillion dollars now held by donor advised funds. And that is huge, growing much faster than private foundations. And, you know, they make up some of the biggest charity charities in the country, I think, Um, possibly half of the top 10 maybe, um, maybe don’t advise from sponsoring organizations and several of those associated with financial institutions. Um, so like a Fidelity or vanguard flop Goldman Sachs morgan Stanley. Um So, you know, there’s been some heat about, well are these really charities, are they charitable giving? And the answer is yes, they are charities, even though they are associated with financial institutions. But that heat has led up to people going, well, what is the money doing? What is that $1 trillion dollars doing in these donor advised funds? Are the and

[00:04:19.50] spk_0:
this has been percolating for years

[00:04:21.88] spk_1:
and this

[00:04:28.85] spk_0:
began on the Senate, the Senate Finance Committee. Uh It was one of the Senate committees. Uh this has been coming up for years around the money parked in donor advised funds and not getting to 501 C3 charities.

[00:04:40.03] spk_1:
Yeah, I think starting with Senator Grassley at the Senate Finance Committee chuck

[00:04:44.91] spk_0:
Grassley. Right? Yes. So

[00:04:52.91] spk_1:
it’s been people have been talking about it but don’t advise funds continue to go up on this exponential growth or where they just keep getting used more and more often. Oftentimes by, you know, some of the very, very ultra wealthy individuals and there’s some heat about that too, about why do we have so many ultra wealthy individuals who can control, you know what charities are doing, who can control our politics,

[00:05:11.74] spk_0:
but

[00:05:34.10] spk_1:
that’s all part of the same story. But because of that, you know, there’s been some pushback and some legislation suggested and now sponsored and introduced, well I should say introduced into Congress, but it’s not actually been a bit on a bill that has a formal sponsor that’s before anybody other than a committee right now looking at it. And that’s called the accelerating um, charitable efforts act or the Ace Act. And that’s up, uh, in front of some congressional members and a committee right now. And that has all these reforms to donor advised funds to

[00:05:51.98] spk_0:
help

[00:05:53.21] spk_1:
sort of mitigate some of those problems of the warehousing of wealth, um, and, and money not getting out to charities as quickly as some people would like. But there are some, you know, there are pros and cons to what all that involves, but it’s good for people to sort of be aware of it.

[00:06:09.19] spk_0:
Okay. Be paying attention to this. Um, now, when at least when I was in 6th and 7th grade, we used to learn that an act becomes a bill and a bill becomes law after it’s signed. But so thank you for making the distinction. Uh, all right. So, so this doesn’t have any sponsors yet there, it’s proposed like it’s, is it in a committee?

[00:07:51.29] spk_1:
It’s it’s in a committee right now. The chances are while I’m not a great prognosticator of what happens on Capitol Hill and I’m not, I’m not based in Washington. I will say what I’m hearing from people who are, is that it probably doesn’t have a good chance of passing right now. So it’s unlikely to see changes now, but this is a growing issue as you mentioned, tony that’s been percolating for, for years and just getting more and more attention. So provisions of the act, which is probably the overall is pretty complicated and we won’t go into the technicalities here that would bore your listeners, but it’s complicated. And for part of that reason there’s not sort of universal, like the nonprofit sector, all wants this to be passed? No, there’s like people on both sides of this issue. And because of that, I think, you know, um, prognosticators who are more informed to suggest that this probably won’t pass as is, are probably right, but there are aspects of it that could find their way in other bills. Um, so that’s sometimes how laws are passed. They don’t advise when laws passed through the pension protection act, not necessarily think those are related, but they can slip their way in. So just sort of pay attention to all of these, you know, movements around wealth and power and what that means to our, um, our charitable sector and how donor advised funds are being used. Something just to, to look at. And there are several organizations who are advocating on either side of this.

[00:08:38.91] spk_0:
Okay, cool, alright. We’ll pay attention to donor advised funds, uh, in terms of wealth and, uh, you know, 88 individuals, uh, controlling, or certainly heavily influencing the charitable priorities. That that’s for, uh, we’ll have to do that on another show. Um, fiscal sponsorship is uh is something else you want us to look out for? Just just define it you know in in its basics so that everybody has the common understanding that we’re starting with.

[00:09:32.42] spk_1:
So the issue with fiscal sponsorship while it is also growing very very quickly. Um And the nonprofit sector might be aware of it but sort of the outside world might not really know what that means. And generally what it means is that there are people who have a charitable project but don’t have a charity entity with 501 C. Three status to run it. They look for another group to either how’s it um or to give grants to their group which might be considered a taxable for profit Um If they don’t have five oh one C. Three status for some period of time and that’s how fiscal sponsorship can arise it can arise in different forms but because it’s not defined by law it’s done wrong all the time. So while it’s growing.

[00:09:57.32] spk_0:
What about new charities that don’t yet have their five oh one C. Three. Maybe they’ve applied so they’ve submitted their 10 23 to the I. R. S. But the process may take a long time can they also sometimes benefiting from fiscal sponsors. So they’ll they’ll get an established five oh one C. Three to make grants to them until they get their own 501 C. Three determination. Is that is that okay?

[00:10:53.65] spk_1:
Yeah, that’s a perfect use of a fiscal sponsor and fiscal sponsors can act as incubators, even if they’re not applying for five oh one C three status right away, even if it’s something they’d like to test out and say, is this a viable charitable idea? Um, So yes, fiscal sponsorship can absolutely run that way, but if it’s not structured properly, even if that is the well intended sort of purposes of everybody involved, if it’s not structured properly, you can get into trouble both as an organization, you can end up having a donor who gets denied a deduction. Um, you can get a foundation into trouble who finds it. So structuring these things properly is really important. So as this field advances and evolves and it’s been around in informal ways for, you know, many, many decades, um, as this field advances, we want, we would like to see sort of more sort of consistency in operating it in a lawful manner that doesn’t endanger anybody and really it helps everybody accomplish what they want to do charitably.

[00:11:58.73] spk_0:
What about the idea, I mean, if you are incubating an organization, let’s say it’s it’s a few people, it doesn’t really matter, but I’m just trying to take it out of the realm of just one person, I suppose you’re incubating uh an idea and you, the Community Foundation because they’ll often act as communities as fiscal sponsors. Community foundations. You think it’s a, it’s a bonafide non profit idea, but and you make grants to it, but it turns out not to be so they don’t get their five oh one C three determination positive. What what what happens then is is the is the Community Foundation liable at all? And what happens to the deductions that were granted to the to this nascent now, not now, not Uh not a 501 C3 entity.

[00:12:51.99] spk_1:
Yeah. So I don’t want to dive too deep into the weeds. But yes, if the Community Foundation is housing and incubating the project, it’s not the same project that is housed in this new entity that is applying for five oh one C three status, that’s going to be transferred over into the new entity once it gets its five oh one C three status. So the Community Foundation is running an illegal activity, which is maybe another two We can talk about, well then the community foundation would of course get into trouble. But if it’s a small part of what the community foundation does, which it probably would be right, it would be maybe like 1% or maybe even less than 1% of the foundation’s overall activities, that’s not gonna usually result in anything terrible unless they were doing very terrible things. Which is unlikely. Um But you know, it would be different. An incubator definitely has less risks and they’ve got all their insurance and you know, legal support and accounting support to make sure that it’s not running afoul while it’s housed in the Community Foundation,

[00:13:07.79] spk_0:
if

[00:13:44.00] spk_2:
I can say something, Gene, I think as I’m listening to this conversation and from Anton has been a fiscal sponsor for many different groups, um you know, you also don’t have to be pursuing C three status, it might the whole purpose of what you’re doing could be done, you know, like we’ve been a fiscal sponsor for a group that was going to hold an event once the event was over, they were all done, they weren’t there was nothing to pursue a C three registration for, you know, So just naming that there’s a few nuances in that in the in the timeline to that, it may not be that there’s ever AC three application and something shady happened, but also the thing is over, you know, there’s a lot of moving

[00:14:00.81] spk_0:
pieces we have and what did you look for uh if you do in deciding to sponsor?

[00:15:21.47] spk_2:
Well, folks approach us, we haven’t, you know, gone out saying we would love to be a fiscal sponsor, it’s because it’s not, you know, intent isn’t set up, there are organizations of course, so that’s like their mission is to fiscally sponsored organizations, um but when we have been approached and folks have asked if we can essentially like extend our organizational privilege to enable their work, um the things that we look for are if there’s any sort of document or organizing agreement for the people involved on the other side again because they might not be, they might not be trying to be an organization but we want there to be accountability that that we can come back to um that they understand how much money they’re likely to bring in and how they’re going to spend it and that and tens books aren’t going to end up with some $10,000. We can’t do something you know um That there’s really a plan for what’s coming in and what’s going out and that they understand the options that exist for either becoming on payroll with us not being on paper roll being a short term contractor because N 10 already has staff and eight different states. But what does that look like if we were bringing someone on for a longer term and they needed to be on payroll in a state we’re not in. So we just have those conversations with them. But we have a standard agreement for fiscal sponsorship that we send to folks when we’re having those relationships and you know, separate bank accounts separate P. And L. Like all of

[00:15:42.21] spk_0:
that.

[00:16:12.33] spk_1:
Let me add just one more thing that some sometimes it’s all about creating um what when some people would call a commons. So these projects never wanted to leave but they find the efficiency of centralizing kind of administrative and back office resources and fiscal sponsor takes care of your legal filings and your tax filings, your insurance. Um and multiple projects just want to stay there forever. Um, So that that’s a use of the fiscal sponsor, a perfectly acceptable use of the fiscal sponsor as well. As long as it’s structured properly, structuring properly would be maybe my main point in this is that oftentimes people think, oh, I’ve seen somebody else do it, let’s do it the same way that may not work that they may be using the wrong example. So the national network of fiscal sponsor. Um, and then they’ve got a good sort of model of how this can be done properly.

[00:16:42.00] spk_0:
They have a book too, don’t they? Gene

[00:16:44.17] spk_1:
the book is actually from Greg Colvin and Stephanie Pettitt called fiscal sponsorship. Six ways to do it. Right. And it’s, I believe the only book out there, um, and it’s really good and not terribly expensive. So if you’re a fiscal sponsor and you’re not quite sure about what you’re doing by that

[00:17:06.18] spk_0:
Book. Okay, fiscal sponsorship six ways to do it. Right. Very aptly named book like it. Okay. Um, yeah. And there are also implications for the donors, right? If this is if it’s not created and implemented correctly. Gene the can the donors get like their charitable deduction clawed back or something like that.

[00:17:22.18] spk_1:
Yeah, they could get it denied by the I. R. S. Because if the donor directs their donation to an entity that’s not a charity. So if they’re telling the fiscal sponsor you must give this money to this project that’s a separate

[00:17:36.40] spk_0:
entity, well

[00:17:38.20] spk_1:
with a different bank account, the donor doesn’t get a deduction. Fiscal sponsor may have been aiding and abetting tax fraud. So problems there. So they’ve got to be careful

[00:17:56.72] spk_0:
okay for your donors too. All right. And on the on the illegal activity side. What what what what’s your what are your concerns there?

[00:18:00.97] spk_1:
So um as a lawyer, of course any illegal activities are concerned. But well

[00:18:06.94] spk_0:
there’s illegal and there’s there’s illegal

[00:18:15.82] spk_1:
actually that’s a really good point. So one of the things that the I. R. S. Looks at is like are you a 51 C. Three organization if you’re conducting illegal activities And they use the question that you asked basically tony There’s illegal and there’s illegal. So if you are engaging in you know civil disobedience to a small extent to advocate, you’re perfectly appropriate charitable purpose and mission. You’re probably not gonna expose your Five oh one C. Three status to to being revoked for that reason. If you’re committing a little bit of bank robbery. Well

[00:18:45.27] spk_0:
that’s

[00:18:45.62] spk_1:
probably gonna get you out of the 501 C. Three status. Right,

[00:18:49.64] spk_0:
Do it right. I mean why why do anything financially fraudulent for like $1,500.

[00:18:55.49] spk_2:
Right? There’s not a little bit of bank robbery like I want the whole safe or not. You know

[00:19:07.22] spk_0:
I mean if I’m gonna if I’m gonna compromise our reputation and risk myself being in prison. I mean, I’m doing this for at least a million and a half or something. You know, I mean, let’s make some decent money out of it, for Pete’s sake. I’m not risking everything for 50,000

[00:19:14.25] spk_2:
dollars. I want the gold bars while I want everything. You know,

[00:19:18.41] spk_0:
right, here’s

[00:19:19.60] spk_1:
how about this?

[00:19:22.79] spk_0:
Let’s go all in. I mean,

[00:19:31.21] spk_1:
The lawyer will say we are all in terms of how much money we’re gonna steal, but 99% of our staff time is spent on real stuff.

[00:19:33.03] spk_0:
It’s only one

[00:19:33.82] spk_1:
of our time I had spent on. It

[00:19:55.44] spk_0:
was, it was a tiny percentage of my time. I mean, it was just a few phone calls, a couple of texts. I mean, some some signal messages. I mean, you know, it was like a half an hour and you know, and then we executed. So it’s such a small percentage of my time. Really, why are we even bothering with this? All

[00:21:07.47] spk_1:
right. Exactly. So that’s the, there’s illegal and there’s illegal, exactly. As you framed it. Um, but I think now, why, why the illegality doctrine, as lawyers like to call it, is trending a little bit, is because we have some things that are considered illegal. That’s something that some states or jurisdictions are saying, well, no, that’s not illegal. And just sort of an example is cannabis, cannabis could be legal in some states, it could be legal for medical purposes in some states? It’s illegal for recreational purposes in other states, it’s illegal and federally it’s illegal, right? So that creates just all these weird dynamics, Can we have a five oh one C three organization where we’re cannabis dispensary for medical purposes, we’re doing it for charitable purposes. Can we do that? And the answer there is kind of know right now, if it breaks federal law, if that is the purpose of the organization and so now we’re not talking about activities now, but if that’s the purpose of the organization is to break federal law, then you can’t get five oh one C. Three status and you can’t if you have five oh one C. Three status and you change your mission, you can’t keep it. So something to look at in terms of cannabis organizations,

[00:21:12.39] spk_0:
even if it’s legal, even if it’s legal in your state,

[00:21:15.23] spk_1:
Right? Because 501 C3 status is a federal tax exempt status. So

[00:21:21.42] spk_0:
that could change

[00:21:53.07] spk_2:
and that’s for the mission of the organization. But what about or a national organization based in D. C. Because they’re a big HQ, they have their annual event in Oregon and the gala where in Oregon, cannabis is is completely legalized for recreation etcetera. And, you know, the silent auction table has like a cannabis care package is they’re they’re registered in D. C. The event is in Oregon. What’s what are the layers there?

[00:23:57.52] spk_1:
So the activities may be judged by what particular state they’re in. Although the sale of cannabis would always be sort of FDA sort of under FDA rules as well. Right? So you could always get charged with a federal crime on that, which is always the tough part. But just from The federal tax exemption standpoint, it’s kind of again fits activities if it’s doing it as an activity, that’s one thing where is it illegal? You know, little bit illegal maybe, and probably not going to really enforce or try to take away 51C3 status because of one event in Oregon where it’s legal under state law. But if that’s your purpose is to to say, hey, we don’t care what the federal law is. This is what our purposes which is contrary to federal law that can get you in trouble. So that’s the cannabis thing. But the study of cannabis or the study of psychedelics, certain psychedelics that might become approved federally and tony as you were saying cannabis could change as well. Um the study of it or the policy around it, that might be a perfect vibe. One C three purpose, either in the scientific realm or the charitable or educational realm, but a little bit of gray area in all of this. But I did wanna introduce one more area of illegality. Um and that is regarding abortion because that is another really hot topic since the jobs decision by the Supreme Court, right? So that allows basically the states to decide whether abortion is legal or not. And some states are really um strict about what they think would be illegal around abortion. So funding people to get an abortion, which what a charity might do, they might not perform the abortion, but they might provide funding and sometimes it’s just funding to their own employees to be able to access abortion in a state that allows it Um that can be illegal under state law as well. So now how does the fight, you know, that affect the 501 status

[00:24:09.39] spk_0:
even just funding an employee making an employee benefit? I

[00:24:39.22] spk_1:
think a law firm in texas, this varies amongst different states. tony so texas is one that’s been um pretty tough and in my opinion just terrible about um the laws that they’ve used and some of these laws go back decades. They’re they’re old laws that they were ruled unconstitutional before, but now after the Dobbs decision there sprung back into life. Um and so yeah, even funding employees to be able to access abortion clinics in other states could be illegal under those states. And

[00:25:50.42] spk_2:
yeah, after jobs, you know, there was like this wave of companies, especially for profit companies, but I’m sure nonprofits did it too, you know, saying like trying to I think in the spirit of of making clear their values, but clearly not thinking about the practicalities, You know, making these announcements, we will always fund our staff having access to this health care. You know, even if you have to travel or whatever. But like to to jean’s point the that isn’t very straightforward. It could if it’s known explicitly that that’s what you’re funding. It could be illegal if you’re an organization in texas, but also it requires disclosure that’s already making vulnerable a vulnerable staff person write a reimbursement which a number of folks we’ve seen say policies for reimbursement of travel. Well now there’s like a paper trail of where you went and and how much it cost and you know, like instead thinking about policies that say there may be harder things happening. We’re increasing your health benefit by this, you know, percentage of dollars just in, you know, like we have to think about the actual users here and not just the value statement where we think we’re making as an organization, you know,

[00:27:23.63] spk_0:
interesting point too about the paper trail because uh, texas again is one state where people who aid in a bet abortion can be can be sued, I think right? Or it could be right, It could be sued. So, so if there’s that paper trail that Amy’s talking about that mentions where the person went and maybe what relative may have helped them or you know that those those documents that that evidence could all be used when if if somebody nefarious inside the organization wants to wants to get some people in trouble. You know that that evidence could all be used against them. Yeah. All right. Well yeah I know well intentioned but maybe not so well thought out. But it’s it’s hard when when something so so disastrous happens. You know people want to rush to the aid like you know just like individuals who give to tsunami victims and hurricanes. You know like employers and C. E. O. S. Want to rush to the aid of their employees when they feel that there’s a uh something grievous happening to them potentially. It’s hard

[00:29:12.60] spk_1:
and I want to say we haven’t heard the last on this. These laws are going to be changed and challenged for years but right now we’re not in a very good place but wrapping it back into a five oh one C. Three package um Can the I. R. S. Take away your tax exemption because you do some of these things and then we get back to your, well is it an activity that’s illegal or is it really illegal? And um my feeling is that the I. R. S. Is not going to judge on the violation of state law unless the state has actually made that determination by a court ruling. So you can’t you might be able to pursue somebody and say well you know they violated the state law but if there’s no court ruling that says that the I. R. S. Is not an arbitrary of whether somebody has broken state law or not. So they will not take away five oh one C. Three status for just a complaint that somebody is violating these rules even though actually that might be the case. Um And nobody is not you know admitting that that’s not true. But the I. R. S. Is probably gonna want to lay low on the whole abortion topic is my feeling about it. But the illegality doctrine and there’s a similar doctrine called the public policy doctrine which was first introduced for racially discrimination which was federally allowed right And bob jones University used that as you know admission criteria or other sort of policy criteria. The I. R. S. Said no we’re going to take away your tax exemption for that even though it wasn’t inconsistent with law but it broke federal public policy. So there’s a related doctrine illegality that’s a sort of violation of public policy. But these are all things that charities just start to need to know and think about because one day it may pop up right in their neighborhood and they’ll be thinking about maybe we should have advocated a little bit harder in advance of that and try to make a difference,

[00:32:10.21] spk_0:
interesting. Um Contrast between the two examples we’re talking about cannabis having been illegal all along and now slowly becoming legal and abortion. Having been legal for the past 50 years now slowly becoming illegal. All right jean. Thank you very much. Love it. It’s time for Tony’s take to taking your new year. Welcome to your new year. I am always optimistic at the beginning of a new year. I cannot help it. It doesn’t matter if we’re in a pandemic or an economic recession in 2009. I’m always optimistic at the beginning of a new year. It’s in my d. n. a. So it’s a year of opportunity. If 2023 was terrific for you and I’m talking personally and professionally, if it was a bountiful year, it was a successful year for you. However, you define that. Congratulations. I’m very happy for you. I’m glad that your 2022 was what you wanted it to be outstanding. If you’re 2022 wasn’t if it was something less than you would have liked again, personally and professionally, Don’t let that hold you back for the new year. Your past doesn’t define your future. Your 2022 doesn’t constrain what you can do in 2023, literally each day, week month, you’ve got the whole year of opportunities, new chances to excel. So don’t let the past hold you back. If your last year wasn’t up to what you would like it to have been. You’ve got a whole new year of opportunities. Welcome to your 2023. Take it in embrace it. That is Tony’s take two. We’ve got boo koo, but loads more time for gene and Amy’s 2023 outlook with Gene and Amy Amy twitter. What the hell?

[00:32:12.79] spk_2:
What

[00:32:32.70] spk_0:
the hell? Yeah. Well immoral, immoral and unethical. To begin with the new ceo Elon musk. But uh, what the hell do we do with our, with our twitter accounts and we all three of us here have won. Nearly every nonprofit let’s assume has won. What we, we sort of have a sense of the landscape. What what, what’s your advice?

[00:33:24.47] spk_2:
I think to, to sum up my feelings. I would say like down with twitter and long live the internet. But what that means to me is a lot longer. You know, I think The decision about whether your organization should use Twitter or not is the same today as it has been every day since 2007 or whatever when I launched right? Like there’s always been, I think the need to consider if a tool you’re using that is not yours, you don’t get to own it. It is always permanently gonna be someone else’s tool, right? You’re just a visitor there. If it’s values match your expectations. If the community is there like all those same questions that we’ve talked about for years

[00:33:28.67] spk_0:
are still the same

[00:35:56.59] spk_2:
questions, you know, But I think what happens is organizations hopefully do ask those questions when they join something and then it’s like a closed discussion. And what I would love to see is that organizations re ask those questions every day on these platforms, right? Um, I would love to say the conversation isn’t about Elon musk because I would like to never have a conversation about. However, he’s really making the conversation about him by taking up a lot of the space and making the decisions right? Um, even today suspending the account that was like a bot that just posted when his jet went places and now that’s been suspended. You know, it’s like, okay, there’s just so much going on there. The issue to me isn’t, what has Elon tweeted or what has he done and more? Is it a platform that has the capacity to be safe for your users in your organization? Well not if every single member of those safety teams has been fired. Right. Um, is it a platform that’s going to be reliable because maybe you’re using it to communicate in real time situations, updates, et cetera? Maybe not When the again teams that support the reliability and uptime of the tool have been fired. So if it is meeting your needs, if your community is still really active there, if it feels like it’s a good fit, I’m not gonna say empirically, there’s only one answer to using any tool. Is it a tool that intent is using anymore? No, it doesn’t meet either the reliability or the values piece that we expect. We’ve seen tons of community members. Um, board members organizations, you know, post their last tweet and some of them, it’s like a very sad goodbye. And for others, it’s find me on linkedin, here’s, here’s my profile, right? Um, and for others, the last tweet didn’t even know that it was the last tweet. It just was the last tweet and then there weren’t, weren’t anymore, You know, it wasn’t a sign off, it just kind of ended. Um, but I’ll say all that and pause and then and and hear your thoughts.

[00:36:38.40] spk_0:
So what, you know, the concerns about safety reliability, these teams having been fired. Um, what about just taking a wait and see what might replace them? I mean, it’s still, we still are now january while we’re like two months into his 2.5 months or so into his ownership. Um, Should we, should we wait? Well, and I should say we’re recording in mid december. So it may not even, it may emerge by the time this comes out in early january. Um, should we, should we wait and see what

[00:37:59.71] spk_2:
was, I think something to think about is that there is no clear timeline for what wait and see means there, there has not been a, we’ve fired all of these teams that provide the reliability of the tool and the safety of the tool or at least the illusion of safety of the tool. Um, and we’ll be hiring for those teams on x date, that’s not been the process, right? So, um, that’s not to say posting your last tweet includes deactivating your account and leaving and everything right. It could just be Maybe you stop using it. Um it could be like in 10 has done, we don’t put money into the tool so we don’t buy ads, we don’t promote things right? So we’re not investing in what it is and the accounts open, we still have a notification set so that if a community member chooses to like tweet at us and say hey how come I can’t find this about the conference, we still see it and could provide that customer service, right? Um but it’s not a place that we are spending our time spending our dollars spending our energy even if you could still find the antenna count right? Um And I think that’s a place that for us feels like we haven’t walked away from the community or whatever parts of the community are still on the platform but we have made clear our stance is that this is not a place that feels worthy of that investment right?

[00:38:20.11] spk_0:
What have you done personally with at Amy R. S. Ward?

[00:40:22.50] spk_2:
I already used twitter so inconsistently like there’s one day where I just see five things and I’m like like in everybody’s tweets and replying to people and then I like accidentally go five weeks without tweeting just because I you know I wasn’t I wasn’t logged in or I wasn’t looking at things. Um I don’t know that I have tweeted recently, I don’t have, I don’t have even in my tab purgatory of my two screens, I do not have twitter open anywhere um I think the place, it’s really interesting. The place that twitter started out for me is kind of where it has returned to of very hyperlocal like there’s so many Portland’s folks that I don’t otherwise see because I never leave my house or you know they don’t work in nonprofit text so I wouldn’t otherwise connect with them but there I could still see them on twitter, I think that’s a place where it started out and I still want to know what the replacement is. Of course I’ve had lots of calm conversations with folks who are like well where should we go and we can talk about that but I also would encourage organizations to remember that you probably are already in more places than just twitter. You know, you probably do already have a linkedin page or if not pretty easy because your employees probably have linkedin profiles and you know, set up some space there um and most importantly, out of all of this again, you and I have talked about this but I really want to make clear in the midst of this kind of twitter, what is social media anymore conversation that you never owned any of that data, you never owned those pages, you never own those profiles, you never got to control them, you do control your website, you do control your email list, make sure that you are building up that list. That you are communicating with people directly in channels that you can directly um, message to because that’s no matter what happens, twitter returns and is a place of Utopia, you still won’t own it, right. And you will own your list and you will own your website and making sure that you’re, you’re really thinking about spending your time and money and staff time in those places. That’s

[00:40:52.33] spk_0:
really valuable. Basic but valuable reminder to cherish and build on what, what you do own your your site, your list. Yeah,

[00:41:01.38] spk_1:
I think there’s, you know, some difficult equity considerations in in twitter’s value um as well. So beyond what the owner who is also the only board member, uh,

[00:41:09.93] spk_2:
that’s the best practice, Right?

[00:42:24.32] spk_1:
Uh, so beyond beyond him, uh, there’s the consideration of, well, where are the folks you are serving? Where are they at? Is there a virtual town square where they’re at? Because many, maybe on twitter and they may still be there and for you to give them messaging, that might still be important. So I’m not, I’m still on twitter and conflicted about it, but I don’t want to be judgmental about charities that decide to stay on twitter because that may be still a really important way for them to reach out to their audiences. Um and for the audiences, I don’t want to be judgmental of them either because there are a lot of people who are not privileged to be able to access a lot of other technology and other platforms. They might, you know, find twitter super easy and you know that’s what they have and I’m not yet willing to say we’re just going to leave twitter to become this, you know, white heterosexual male dominated platform and Ellen and his bros can do whatever they want with that without any pushback from other perspectives there,

[00:44:15.41] spk_2:
I hope Tony Let’s make a 2023 resolution that gene and I get to do more shows together um because it brings up such a good just hearing you share that Gina and I agree with everything. Um as always let the record reflect, I always agree with Jean and I am always doing legal activity. Um is, is the version of this from a few years ago about facebook, right. And there’s some really unique and important differences between the twitter options available just like because of how the platform works versus facebook, you know, twitter is public by default. You don’t have to have a twitter account to go see what an organization had been tweeting about. Here’s some information right versus facebook which is very like within the world of facebook um the data trail that that creates is very different right? Organizations could say despite the hellscape we’re staying in twitter and we are to loop back to the previous conversation, um, an abortion fund and we are going to make sure that we are sharing information. No one has to interact. No one has to like ask us for it. But we’re putting this information out right in a place where people maybe find it in a search on facebook doing that or saying here’s our upcoming fundraiser to raise funds for abortion funds. Everyone who RSVPs for that event and has a texas address, has just created a data trail that is likely very problematic for them, Right? And the organization maybe didn’t even understand that’s what is happening, Right? So they are very different platforms, very different ethical dilemmas for sure. Um, but but what they mean for you as an organization staying there and what kinds of compromises you might be creating for already vulnerable communities are very different because they are just very different platforms, right? That operate differently.

[00:45:09.04] spk_0:
If we if we should decide to go elsewhere. Uh, let’s let’s talk about And you well, you mentioned, you may want to put on twitter that you can now find us on, we’re gonna talk about mastodon and uh, there’s another one post. Um, but you may want to just alert folks that your activity has moved, you know, over or or like you said, find us on linkedin or you know, we’re very we’re still very active on facebook. You know, instagram maybe, you know, maybe our channel. You know, whatever you want to I think you want to let folks know what you’ve decided without just disappearing. Mm

[00:45:14.16] spk_2:
hmm

[00:45:14.93] spk_0:
And

[00:45:16.37] spk_2:
like you probably should have those links on your website. So have updating your bio to say,

[00:45:22.54] spk_0:
you

[00:45:54.15] spk_2:
know, visit our website and find the channel that works for you or something. You know, you don’t have to um, you don’t have to write that farewell letter As in last tweet with every link to every site. Right? But making sure that you do think about what a user is going to see if they do try to look you up and have the bio be updated or whatever. Um there there are a lot of folks talking about mastered on host, these other platforms. I’m, I have accounts on them. You are welcome to find me. I’m not posting a bunch there or anything but you know me, I like to just see how tools developed. So I’ve had accounts on both of those and um,

[00:46:06.02] spk_0:
you’re more, you’re more altruistic than I am. You like to see how the, how the, how the platform develops. I just want to grab the name tony-martignetti

[00:46:15.28] spk_2:
before for

[00:46:22.96] spk_0:
somebody else who’s been on my show. I’ve had tony-martignetti other, another tony-martignetti on my show. Um, he never had me on his show come to think of it.

[00:46:25.18] spk_2:
Well there is as of today no other amy sample ward. So there’s only 1 20

[00:46:31.88] spk_0:
but but I’m not posting, but I wanted to grab the grab the real estate but I did it for more selfish reasons you

[00:46:38.05] spk_2:
did altruistic.

[00:46:39.81] spk_0:
I

[00:49:20.47] spk_2:
mean I think that um as is true with a lot of social media platforms that have been uh financed by and developed by the privileged communities of tech development, that’s who’s mostly on those platforms already right? Even though they’re very different mastodon is, you know, kind of like what’s the open source values, whatever. I haven’t seen a lot of that and and post trying to be more about like what are you really thinking and like content focused mostly screenshots of tweets so it feels a little um, a little, a little bit of whiplash but I wouldn’t say that it’s bad if you are like tony and you were like, but there’s so many organizations with our acronym like we want the the handle go for it but don’t go fill the account with content as if you are present there, just just sit on the handle, you know, because once you have a complete profile, Well now it looks like you are trying to post there and people don’t know how to interact right, just hold, it reserve it in your name, put the password in last past, you know, but but don’t, don’t um like I’ve always said and 10 doesn’t have an account on these platforms even though I just said that I do and a number of staff do because you aren’t going to use individual first platform as an organization. Well, if you haven’t been an individual first um, to actually know how it works. What’s the ins and outs of this tool? What are the norms? Um, mastodon works a little bit differently than folks may have experienced um, where you are in order to even create an account, you have to pick kind of what, what server you want to be associated with that changes what name it changes your default kind of news feed. Um, so there are a lot of things that you aren’t going to know out of the box for your organizational profile, you’re gonna need to play with it. And they’re, all these tools are developing a lot faster as they see hundreds of thousands of new users, you know. Um and I think again, back to the values point, they are also experiencing the challenges of lots of users write posts. Said that it only took six days before they had to take swastikas down. So what is it, what are the, what are the platforms doing, what are the values there? How are they moderating or managing content safety users before you say, oh yeah, let’s have our organization profile there.

[00:50:14.09] spk_0:
I did see uh a nonprofit power user and and very popular person, of course Beth Kanter, uh she’s active on mastodon. She didn’t just, she didn’t just take an account, but she’s actively moved there. Um, posting lists of other nonprofit folks to to follow that, you know, that she follows, so that another, another drop another name, J Frost, I see he’s there. Um so I mean that’s just, that’s just two people uh but beth in particular happens to have many hundreds of thousands of followers or had on on twitter. Um so it’s, it’s pretty monumental decision to believe that kind of um that kind of largeness and, and go to something where you know, you’re now, you now you now have zero followers on on day on day one. So that’s a significant decision. Um so I’ve seen and there’s some other folks too, but those, those, those are the ones that come to mind that, that have made the move there and and are active and actively encouraging others to

[00:50:38.88] spk_2:
come,

[00:50:41.86] spk_0:
you

[00:50:42.71] spk_2:
know, and I, and I think not to put Gene on the spot, I know this isn’t what you were prepared to talk about, but

[00:50:49.29] spk_0:
I

[00:51:51.18] spk_2:
think we saw this with facebook and you know, facebook had its own rules about how they would kind of pursue this. But these new, these new platforms will have to have their rules too. And that is organizations who don’t necessarily have a registered trademark but are very clearly like the United Way of Portland or something, you know, and then somebody went on there and created that account already, right? And is trying to sit on it, twitter has experienced, you know, people sitting on the accounts and then um people needing to have access to them and saying that’s actually my name or my organization’s name or you know people that sit on the U. R. L. S. Of like World War three. Oh now there is one, we need that U. R. L. You know whatever um so that that will there there will have to be a course whatever that course maybe for resolution on that. I also I just don’t want people leaving the conversation feeling like they need to spend the next two hours finding these platforms requesting an account and trying to sit on their organization’s name themselves. Like if you want to you can but don’t feel that’s not the takeaway here.

[00:51:56.72] spk_0:
Yeah, don’t do it, don’t do what tony-martignetti did or

[00:51:59.98] spk_2:
just don’t feel obligated that you have

[00:52:01.69] spk_0:
to,

[00:52:03.61] spk_1:
I’m sitting on a post account tony and I’m active on mastodon uh as well. So yeah I I think it’s going to be a tricky thing but for organizations, if you do find somebody using your name, you may want to bring it up and challenge that you talk to a lawyer about that, especially if they’re putting anything in that misrepresents your organization, if they’re acting like they’re spoofing your organization and putting out some content that’s not true or bad for you, make sure you put a stop to that

[00:52:34.39] spk_0:
I guess there are people who would do that and just hope to make some money at it Like

[00:52:40.35] spk_2:
there’s definitely money to be made. You

[00:52:44.04] spk_0:
know, if I get the ford motor company or Tesla or something, you know, I’ll be happy to sell it to you for $150,000 or well a million and a half seems to be my price. So

[00:53:08.96] spk_2:
I mean we see that with U. R. L. S already right. People just buy lots of U. R. L. S. Waiting for somebody to create a product called like the or uh, the oreo slushy. Great. Now we invented it. We need to buy that U. R. L. From you, you know? All

[00:53:09.20] spk_0:
right.

[00:53:10.19] spk_2:
We’re all in the wrong business. Let’s just go buy a bunch of

[00:53:29.93] spk_0:
alright, um, amy anything more? We should talk about mastodon. Oh, I did want to just clarify for folks because you mentioned mastodon, you have to select a server. It’s really just to me it’s a community. sure, but there are only about 10 of them. It’s not like there’s a knitting community and a and a rock climbing and a soccer, you know, it’s not like that. Not yet. But I don’t

[00:53:39.52] spk_2:
want to use the word community and have folks get to that first page and see the word server and have no idea where the word, you know, But yes, you’re right. You are, you’re kind of choosing the space. That’s your entry point into the world of mastodon

[00:53:57.09] spk_0:
And there is one with a social good label to it. So Beth Kanter is at Beth Kanter dot Social Good something.

[00:54:03.76] spk_2:
It’s

[00:54:04.20] spk_0:
like you said it it affects your

[00:54:06.10] spk_2:
your name

[00:54:06.92] spk_0:
affects your screen name, your your handle your I. D. Yeah.

[00:54:57.74] spk_2:
Um I the only last thing that I’ll add in our final minutes here is a very long time ago, people have been like O G listeners um you know, we used to say, well how would you know what social channels your users are on And you know, we’ve talked about having in your own website for your user profiles or in donation uh forms wherever you might be getting feedback from folks now that they have to put their U R. L. In, but just a checkbox like Oh yeah, we do. You I have a facebook account, an instagram account and whatever, you know, whatever it might be. Um make this is an opportunity to go check those lists and say maybe we should add mastodon on or maybe we should add post or we should update what options were actually providing. So so that you could notice, oh, there are a lot more people now here. Maybe it’s worth us looking at that platform. Right. So if you’re doing some year end data cleaning, look at your at your profile forms or your feedback forms where you might say, what tool, you know, what are their channels are you on and add some more of these newer tools.

[00:55:20.84] spk_0:
Amy sample ward Ceo of N 10 for the time being. She’s at

[00:55:26.18] spk_2:
they

[00:55:45.50] spk_0:
are at amy R. S Ward and Gene Takagi, principal attorney at the neo nonprofit and exempt organizations law group for the time being at g tech, but also you’ll find him on mastodon and post amy. Thank you jean, thank you very much.

[00:55:47.74] spk_2:
Thanks so much. tony I really do want to do shows together with jean.

[00:55:51.47] spk_0:
No, I concur yes, that’s uh that’s a good idea. Well let’s make sure we do another couple of these this year.

[00:55:57.73] spk_2:
Perfect,

[00:56:27.95] spk_0:
alright and again, happy new year. Next week. Erica mills Barnhart on common communications conundrums. If you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com. Our creative producer is Claire Meyerhoff shows social media, is by Susan Chavez. Marc Silverman is our web guy and this music is by scott stein, Thank you for that. Affirmation Scotty B with me next week for nonprofit radio big nonprofit ideas for the other 95%. Go out and be great.

Nonprofit Radio for October 19, 2018: Your Tech RFPs & Donor Advised Funds

I love our sponsors!

Do you want to find more prospects & raise more money? Pursuant is a full-service fundraising agency, leveraging data & technology.

WegnerCPAs. Guiding you. Beyond the numbers.

Credit & debit card processing by telos. Payment processing is now passive revenue for your org.

Fundraising doesn’t have to be hard. Txt2Give makes it easy to receive donations using simple text messages.

Get Nonprofit Radio insider alerts!

Listen Live or Archive:

My Guests:

Drew McManus & Ceci Dadisman: Your Tech RFPs
Two tech providers from #18NTC reveal what they wish you knew about crafting your proposal solicitations. Plus a few secrets their colleagues wish they wouldn’t reveal. They’re Drew McManus, principal of Venture Industries Online and Ceci Dadisman from Form.

 

 

Gene Takagi: Donor Advised Funds
Gene TakagiGene Takagi returns to discuss the pros and cons of this increasingly popular donation method that gets lots of press. It’s gifts for nonprofits, why all the fuss? We’ll find out. Gene is our legal contributor and principal of NEO, the Nonprofit & Exempt Organizations law firm.

 

 

 

Top Trends. Sound Advice. Lively Conversation.

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

Every nonprofit struggles with these issues. Big nonprofits hire experts. The other 95% listen to Tony Martignetti Nonprofit Radio. Trusted experts and leading thinkers join me each week to tackle the tough issues. If you have big dreams but a small budget, you have a home at Tony Martignetti Nonprofit Radio.

Get Nonprofit Radio insider alerts!

Sponsored by:

View Full Transcript
Transcript for 412_tony_martignetti_nonprofit_radio_20181019.mp3

Processed on: 2018-10-24T15:17:33.790Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2018…10…412_tony_martignetti_nonprofit_radio_20181019.mp3.750960386.json
Path to text: transcripts/2018/10/412_tony_martignetti_nonprofit_radio_20181019.txt

Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your aptly named host. Oh, i’m glad you’re with me. I’d come down with sheer adoni sis, if i saw that you missed today’s, show your tech r f p s to tech providers from eighteen ntc reveal what they wish you knew about crafting your proposal solicitations plus a few secrets their colleagues wish they wouldn’t reveal. They’re drew mcmanus principle of venture industries online and sissy dad baizman from form and donor advised funds jean takagi returns to discuss the pros and cons of this increasingly popular donation method that gets lots of press it’s gets for non-profits where all the fuss we’ll find out. Gina’s, our legal contributor and principle of neo the non-profit and exempt organizations law firm tony take two a driving rant responsive by pursuant full service fund-raising data driven and technology enabled tony dahna slash pursuing capital p wender cps guarding you beyond the numbers gregor cps dot com bye tell us turning credit card processing into your passive revenue stream. Tony dahna slash tony tell us and by text to give mobile donations made easy text npr to four, four four, nine, nine, nine here are drew mcmanus and cc data zeman from the non-profit technology conference welcome to tony martignetti non-profit radio coverage of eighteen ntcdinosaur twenty eighteen non-profit technology conference we are in the convention center in new orleans, nola, louisiana, and we’re kicking off our coverage with this interview. This interview, like all, is sponsored by network for good, easy to use donorsearch and fund-raising software for non-profit i’m very pleased to welcome for our kickoff interview. Drew mcmanus and cc dahna sametz drew is principal of venture industries online and cc is digital marketing manager four for money and your seminar topic is everything tech providers wish you knew about reading an r f p plus the stuff you want they want, plus the stuff they want to keep secret. All right, let’s hope that the conversation is shorter than the title. Welcome well thinking. Well, you’re very welcome, let’s start off cc i love you. I don’t know, i don’t know if viewers of the video are not gonna be able to see your pendant, so show that off. No, all that off. Put that on the mission in camp. Okay. Awesome. Thank you. Yeah. Very striking. Thank you. Why do we need this topic ? What’s what ? What’s not going right with peace ? Well, i think it a very basic level as non-profits we all need to do our peas at one point or another. Right ? And sometimes they can be a source of a little bit of trepidation for, to write and to sort of put out there to vendors. And we felt that this was a very timely topic to talk about to help ease people’s minds a little bit about that. And really give them some deeper information into the r f p process. Yeah, okay. Drew there’s, there’s trepidation people people are fearing this this process, right as a web developer, we get extremes there’s either trepidation where people don’t know how to approach it because they don’t feel comfortable with how to evaluate proposals. They don’t know what to ask for. They just don’t know how to kick the process off or on the other side of that. They have this extensive laundry list of things they think they want without really knowing even what they can can’t ask for or what i knew. Platforms and options are available. The r f p process really should be more involved with learning what you have and what can be. Okay, so that’s, what we’re gonna be talking about what you have and what can be so both of you are on the receiving end of a piece. Is that right ? From from non-profits currently, although i’ve spent most of my career working full time at non-profit organizations and as a consultant working on behalf of the non-profit for these kind of things. So that’s sort of how we’re approaching this drew is definitely on the vendor side, but my experiences is farm or on the non-profit side. Okay. Okay. So, let’s, stay with u c c your description promised tio pull back the curtain. What ? Pull back the curtain of how tech providers are crafting their proposals. Okay, with you right now, he’s. The current can you ? Uh, yeah, yeah. I mean, i could talk a little about what’s behind this curtain. Yeah, i can talk about it a little bit from the from the non-profit side in creating the r f p you know, our peace can be a really big project, right ? They could be something has looked at that is that is very involved because you want to make sure that what you’re putting out there is is true to the project that you’re looking toa have completed, and you want to make sure all the right information is in there so that you get the right vendors because ultimately you want a good vendor experience. You had a good working experience and we want attracting the right exactly you want you want the right vendors toe look at that project and won a bid on it, and ultimately you want to find the best vendor for your particular organization on dso in this session, you know, we’ll talk a lot about, you know, really what needs to go in that r f p from the non-profit standpoint, it only in the session we’re going to sharing here, too, right here yet. Zoho back on non-profit radio listeners, i don’t know we’re going to be doing out here too, right ? Right now we are ok, we are right. So one of the big things that we’ll talk about from the non-profit standpoint is at a very basic level just being honest about what you need from this project to put into the r f p, you know, bring all of your assets together, bring your team together before you even start writing the r f p to, you know, figure out what you really want let’s say it is, you know, a website project. You know what ? You really want this website to do what you want, tohave it, what you want to have contained in it. You know what your delivery bals are, what type of conversions you’re looking at so that you can start the process out where everything is sort of laid out on the table before you’re even starting to write the r f p and then as you go through the r f p process, making sure that all of those things are in there so that you know it’s full disclosure for the vendors, okay, what i what should we have in place before we start typing words into r r r f what does stick with you ? Ok, the big things to have in place are number one, the team that is going to be working on this project and have a point person assigned. For the project and that’s a really big thing, making sure that there is somebody responsible for communicating with the vendors about the project, who, you know is going to make the time and the energy commitment to do that, and also gathering together all of the information that needs to go in the website, whether that’s text or photos, multimedia files, whatever that might be bringing all of getting all of that together because ultimately your vendor will need that you’ll have to give it to them eventually, so might as well do it right off the bat, and then you need to gather together all of your other sort of software providers. You know, any other piece of tech that might touch that website ? So if you have, you know, a fund-raising cr m ifyou’re in arts and culture organization, and you’re selling tickets to shows, you know that that software is well, you know, your email marketing software, whatever those things are that need to interact with that website in some way getting all of those things together. Okay ? It’s, time for a break pursuant they’re e book is fast non-profit growth stealing from the start ups. They take the secrets from the fastest growing startups and apply those methods and good practices to your non-profit it’s free as all the pursuant resource is our it’s on the listener landing page. You know where to find that it’s tony dot m a slash pursuing the capital p for please now back to your tech or f p’s drew let’s, go to you. Who should be the point person ? Who’s the right person were now our listeners small and midsize non-profits so i’m gonna assume there is no director. Ok, correct. We should be in charge of this process. Dede was sisi was describing. I knew that was gonna happen that way. Have a dd coming later. I’ll answer to it. It’s not here. Now, it’s actually, cee cee cee is with us who should be in charge for most organizations is going to be the marketing director or the vp of marketing that’s typically the person who ends up becoming the point person because they’re going to be the gatekeeper for most of the content architecture that sisi was talking about. And so that’s usually a decent person to be able to be the point to contact oh, and process the art piece that are going to come in, you know, i’m one year earlier questions you had toss to see see about, you know, the things that we’re looking, i didn’t metoo i’m not gonna look at me, i’m gonna beat it up. Now i gotta beat it up now, so i focus on myself, okay ? On my my mistakes. I know it’s just but being able to actually educate non-profits into the things that they need to realize before they even start soliciting our peace and won the big ones is that that tech provider world, especially web development, is in a massive state of flux. Right now, there are really two large competing schools of how to go about being a service provider, which there’s the traditional old school model of you. Give us the specs, we build this for you, and then it’s yours. Hand it over, enjoy it. Yeah, and then there’s mohr of the annual license fee model. There are one ofthese for things like design and development programming, that kind of stuff. But then there’s an ongoing relationship that provides training support. I like to call it attrition insurance because you’re going in insurance, attrition, insurance, you’re going to have people who are going to turn over, and you need whoever comes in to be able to talk to someone who has some kind of institutional knowledge about that online presence, at least and that’s really not even just a non-profit but in the tech sector, especially that’s been around for years now, it’s almost expected oh, and it’s still a new concept to non-profits and so even understanding when they start soliciting are of peace, they could get some very radically different ideas coming in, and if they’re not prepared for it, you might out of hand, just toss something else that could actually be your better solution. Do latto on doing a lot of nodding ? Yeah, yeah, i mean exactly what drew just said about non-profits are used to this in terms of websites, the subscription model type of thought where, you know, you might pay a maintenance fee, monthly or yearly two, your web developer but really, i think for this particular industry, that is the way to go because there is so much turnover in terms of staff and knowing that you have someone there at all times to, you know, sort of help out, you know, god forbid something breaks or, you know, maybe you just have a question that there is somebody there at all times that can really take care of that. This industry, maybe more than others, should be using that sort of dahna i’m surprised to hear that non-profits air not acquainted with this attrition problem, i mean, they have it in having a crime, i mean, certainly in fund-raising where i mostly you’re saying that they’re not factoring that into this process, exactly, exactly there not really thinking about how that relates to their web presence and also having, you know, a monthly maintenance contract or yearly can be very helpful, even just when you need a little thing fixed or changed usually non-profits will go out and you don’t try to find, you know, a one off kind of developer project or, you know, hyre a freelancer to do something and and once you have, you know, all of these different people that are going in there and touching your website at any one time, ultimately that’s sort of going to dilute the integrity of the website so it’s best to just be able to keep with one person who really knows it in it. Out now, i highlighted. Beautiful necklace pendant. I want to highlight drew’s vest, very dapper vest and pocket square. Now, i am not to be outdone. Pocket squares, but yeah, exactly. Undo that. Drew is the king of the waistcoat. He has a warrior he’s, a waistcoat warrior hashtag waistcoat warrior he’s got a waistcoat for every occasion, and he looks damn good in them. Thank you very much for your marriage. You know each other. You know, it’s outside, outside the professional realm way. Do we’ve been friends for a very long time. And actually, one of the first ways that we met was doing a session. You contacted me to a website session. But when c z was a marketing director at the palm beach opera, they became client of mine, and they’re still clients. Oh, and we worked together on a number of sessions and mostly in performing arts based conferences. But yeah, way. Have a good report. Okay, show’s. Awesome. I love that this is a great energy. Great five kickoff kick off our coverage of auntie. Easy. Okay, drew let’s, stay with you. Something else that sisi mentioned next in the sequence. Gathering the right information that belongs as a part of this or ft flush out out more that’s the perfect question to ask yeah, number question number eight is it took me a while, we’ll slow out of the gate. Oh, it’s, just a number eight it’s one the best ones, because that’s also one of most difficult, because when organizations look at their content, i mean, they look at the stuff that they’re familiar with and what they know. So the actual copy, the media co-branding elements and that’s something that they tend to do fine with but where we encounter groups, having the most trouble is when they have to actually get all that information from point a to point b, meaning that let’s say they have a system built on julia or even wordpress, which is what we use in its open source. But that doesn’t necessarily mean it’s easy to extract the data depending on how that web site was originally built previously. And if in order to say what kind of data we’re talking about trying to get out, it could be anything from more complex information like customer data or event information there an event driven organization if they sell tickets. There’s all kinds of event. Meta, which are little bits of data, like the starting time, the location to find these terms. Because we have jargon. Jail on non-profit mirriam would hate to see you behind bars, but you live served time. You have. Not on this show. I don’t allow it. So you described it. You defined it quickly. Okay, so, yeah, little bits of data that right ? And so that they don’t know that that getting that from point a to point b isn’t a simple as doing, like a simple export. There’s no standardized format for something like a vent data. Even though google and apple have their own standards, it only covers a few bits of metal, so being able to move that might actually require a substantial amount of time and effort that they had no idea it was needed. But worse didn’t budget for, and that could sometimes be the most expensive element dahna project outside of something like developing an ap i connection to something like sales force or cr m or any kind of outside donor-centric connection between your data and some other outside latto yep, it’s the language that allows to different platforms to be able to talk to each other in the same language as opposed to having, you know, something in german trying to talk to someone in russian. Okay, now, how does it now ? I made you tigress thought your fault. How ? Does this all relate back to what belongs in our f and that’s ? Just it ? Those are the things that providers in my position usually don’t tell clients in advance because they well, do they even know i mean at the art of the stage ? Well, that’s just it most non-profits don’t they didn’t ask for that. But the provider doing replying to the r f p at that stage probably doesn’t even know that level of detail, do they ? They should, and they should be asking, and not every provider does that this goes into the heart of this stuff they don’t want you to know about the process is going to be iterated we’re not not just foisting an art of pee on a bunch of vendors, and then they return it within within this by the specified deadline. But there’s a there’s a back and forth there’s a community there. This conversation there should be questioning that’s a beautiful way to put it and that’s one of things that were going to be talking about is the r f in the traditional sense that we’re talking about way are is that the old school ? Throw out the laundry list of things that you want and get it back is not probably going to be in your best interest. We’re going to be talking about some alternative methods, which will be including project evaluations. We are talking about project evaluation, and a project evaluation is different than our pee. In that you will usually pay someone a small fee, a developer, aura potential provider to look at all of this stuff for you, and then be able to give you a legitimate fair estimate of what it cost will be. Okay, so that that’s sort of. Leading into your r f or is it in place of it could go in both one of the options is a migration where i’m sorry, ah, hybrid model where that can then let them build a detailed, accurate r f or they can use that as just the basis of being able to move forward after they’ve looked at a couple of groups to narrow down to a shortlist based on reputation and previous work. Ok, and this can only be good, really, for the non-profits because in this process, you get to know the developers who are responding to this r f p and, you know, that can help you choose what the right relationship might be, you know, rather than just saying, oh, well, these people look great, and there are f p submission looks great, but you don’t really know them. Yeah, all right, so we’re holding hands before we sleep together. Exactly. Get way. Get going. We’re going on a few dates before we sleep together. Okay, look on dating apps. A great wayto use that analogy. That’s. One of the things we have in the session that we’re talking about here now. Thank you. Is that if you wanted to go online and find someone to date and you just have a laundry list that’s called tinder ? If you actually want to find someone that you want to have a relationship with that’s that’s an entirely different story and shoot it might be in harmony, i would like to know the harmony, harmony, scientific that’s, yes, yeah, yeah, yeah. Profiles are more detailed, nothing no yeah, that i know from experience. I’ve heard. I’m happily married on dh, not on any any dating site. In fact, i’m happily married has nothing to do with other dating sites. That’s. True, i don’t know. I don’t see a ring, you know, you’re right, i don’t know. My wife has what she’s here, but we don’t wear rings right on. But, yes, i see your true oh, she’s on she’s, yes, okay, showing you just take that truth, okay ? So what was that ? Aggression ? Okay, all right, so so we’re dating, all right ? So how do we find the people who the potential vendors who could be valuable to us either for this project evaluation or for our f p how do we know where to send this thing ? We’re jumping around a bit, but listeners are accustomed to that that’s a good question, how do how do we know that’s actually really good question, and i know that, and i know that drew will have some thoughts, too, but if your friend on for non-profit that doesn’t really have a lot of experience in doing this kind of thing. I think the first thing to do is to reach out to colleagues for other organisms from other organizations who have recently been through a website, redesign or development project, or maybe you don’t even know them, but maybe it’s a non-profit or another organization that has a website that you like, reach out to them and see who did it see with their experience with and then also utilizing any sort of membership organizations or associations that you might be involved in convene helpful like a f p or a or p r s a and ten more any of those only, like number three any of those. And only after i prompted you. All right, let me sample warning would have been on my list. Trust me. Hyre where ? Seven it’s not there’s, no value. Nobody’s listening that yes, people listen. So all right, so i think that would be the first laurel referral to someone who did something you like or from among your or from among your professional network, including professional associations. Yeah. Putting. And i think putting it out there that you are looking for someone is really good as well. Even just on your social media on your linked in that hay, whether it’s personal or professional or both. Hey, we are looking to redo our website. Does anybody have any ? You know, recommendations, people you love people you worked with that you don’t love you no stairway from this kind of thing. Okay ? Do you have more ? That that’s a great way to go about it. I would say when you go the social media route or a public rout beep prepared for the onslaught. Yes, because there will be plenty of people who are in business development, we’re going to look for those sort of things reach out to you. The only thing i’ve really add to that is looking at other sites that you like as a starting point. You look at that that face is it pretty ? Do i like it ? Do i enjoy how it worked as faras the interaction and the user interface ? And if there’s, ah, website credit at the bottom, which not all sites do, but if there is, then start to reach out to those organizations. But most importantly, when you go to their websites, you want to try to find someone that has as much information about process as in the results because it’s the process that what we’ve been talking about here that really develops that relationship, that build a successful lives, you’re because you’re successful outcome ? Yeah, absolutely. Ok. Yes. You don’t want to just focus well said you want to focus on how great the site looks. It works. But was was it held to get here ? May not be worth it. It may not have been worth it. Is it a mistake to send out a dozen or of peas. I mean, is there an optimal like there ? Max, i don’t need. I don’t want to hear from fifteen vendors. I can’t r or just can’t process that much. Cc what’s. Your advice around how many descent ? I think that i don’t think that it’s a bad thing to get a lot back, i think in this kind of situation, because there aren’t there aren’t a ton, ton ton of developers that work with non-profits to start out with, you know, with some other types of businesses where you might get an onslaught of r f piece from web developers non-profits air a little bit lucky in that, you know, it’s going to be a relatively smaller number just to start out with, but i do think that it’s better to sort of see what your options are and that’s an important part of this process because what i find is a lot of non-profits when they’re doing a website project, they may be stuck, quote unquote stuck with a certain solution because they didn’t know what their other options were, and they were they were working with a developer aura developer was recommended to them that is saying, you know, this is the way that you need to do x, y and z and not that that’s a bad way, inherently, but maybe not the best way for that particular organization, but they just went with it because they didn’t know what there are other options were. So i’m more of the mind that the more sort of information that you have and it is it is a pretty good thing. Okay, so you don’t want to put our backs on it. Andi it’s likely to be a small number anywhere you’re saying, because right, and you’re going to sort of tear those things down. So once you get the first group of them, then you’re immediately going to be able to see, okay, yeah, these were not interested in so here’s, my smaller core group that we’re really going to look at, you know, and then from there, okay. We still have a few minutes left together, drew let’s talk about something that’s related to this development versus legacy costs. How does that relate to this sort of process and what listeners need to know about development versus legacy cost everything they don’t know, which is everything, and it is the biggest issue moving forward for non-profits is if you’re a non-profit like a performing arts organization, they already have a really good idea of what legacy cost is with labour expenses because their labor intensive organizations there’s no way to avoid that. Websites and technology platforms in general are starting to become mohr like that there’s, a minimum legacy threshold, cost wise from an expensive perspective that is increasingly going up because of how much organizations are relying on those platforms, but they don’t traditionally look att them from that perspective because of that one off here’s your website. Now i’m gone. We’re talking about the ongoing costs of maintaining the site exactly, but it’s not just maintaining the site, is maintaining that the ap i connective ity all the software in the scripts that make things do what they do change at haste, that is far more. Rapid than it used to be that’s a great example. Sites are goingto break connections, yes, and what other things are legacy costs that the last thing, the biggest one the next one is going to be with regard to how responsive design functions and responsive design is when you see a website on a desktop, as opposed to on a smartphone and everything shifts around so it looks better on a smartphone that works better. The underlying technology that makes all that work is also in a hyper state of developed and that’s, constantly changing. So it’s and it’s constantly changing to keep up with changes and things like iphones, they come out with new specs and new dimensions, and thing’s called media query thresholds change. So all the rules that go into how stuff shifts around has to change. And if your website or your online platform is a couple of years old, it may already be behind the times and not working well on those devices, even though you thought it originally was designed to do that. Now, listener’s, you’re gonna want to know that i did hear drew say the media query threshold we don’t have enough time to flush that out. So i’m gonna get you gonna get passed, it’s one of fury’s, everything but i’m letting this one go, but i did notice do not do not think that i didn’t catch it, okay ? And then sisi, why don’t you explain the different mean, what ? Drew was just describing those legacy costs and development costs, which i think is pretty commonly understood, but that’s just right, right ? So your development costs that’s really going to be, you know, the money that you’re putting out to make the site right in that first project to actually create what you’re trying to dio and it’s, i love that we’re talking about this because from an organizational perspective, it’s really important to keep a line item in there somewhere and some money in it for those legacy costs, you know, because a lot of times we’re just looking at it and say, okay, well, you know, it’s going to cost x amount of dollars to build the site and then that’s it or, you know, we’re given, you know, we get a grant for it or were given money from a donor to build the site or something like that and it’s looked at as just sort of a one off. You’ve got to think about keeping money in a line item for these ongoing kinds of things and also the developer that you’re working with. Khun give you a good sense of how much money that might end up being, depending on the functionality of your sight, because that’s really going to vary from site to site and from organization to organization. Okay, i should got they should another should from drew. All right, we gotta leave it there. This is twenty martignetti non-profit radio coverage of eighteen ntc. I’ve been talking to drew mcmanus principle of venture industries online and cc dat baizman digital marketing manager at form. This is tony martignetti non-profit radio coverage of eighteen ntc and this interview is sponsored by network for good, easy to use donorsearch and fund-raising software for non-profits. Thanks so much for being with us. We need to take a break. Wagner, cps. Do you need help with accounting or your nine ninety thinking about a change of accountants ? Time to get a fresh opinion. Check out witness. Cps dot com start there. Then talk, you know. The partner to talk to you, eat each tomb. He’s been on the show, he’s a good guy. I trust him. He’ll be honest about whether they can help you. Regular cpas. Dot com. Now time for tony’s, take two. I do a lot of ah long distance driving about twelve hundred miles every month, or or every six weeks on dh. I’ve got a couple things. Ah, couple things on my mind about that, that i’ve, that i’ve seen that ah, bother me. So the video talks about three of them. I was for here. I feel like the one i wanna talk about is getting gas. The gas lanes in ah, in a gas station are for getting gas and for cleaning your windshields on when you’re cleaning your windshield, that doesn’t mean wash your car with the squeegee that means clean the winter came the glass certainly get your glass nice and clean. Fill up the gas. Take your time doing all those things don’t trip don’t spill any gas, you know, dribbles over anything, nothing like that, but when you’re done, get out of the gas lane and park that car. Don’t be the person sitting still in the gas lane while you’re going to get iced tea. There’s a couple more rants along with that one on the video at tony martignetti dot com now time for gene gene the law machine you know who i’m talking about ? Of course. Well, who else would it be ? Jean takagi, the managing partner of neo the non-profit and exempt organizations law group in san francisco, he edits the wildly popular non-profit law blogged dot com and he’s, the american bar association’s. Twenty sixteen outstanding. Non-profit lawyer he’s jean takagi he’s at g tak. Welcome back, jean. Thanks, tony. How are you ? I’m doing very well. How are you this afternoon ? I’m doing very well, feelingood out there. Good. Good. I’m glad. Um, i’m overdue for a visit. I need to i need to come see you on the west coast. The ads actually the perfect time that we’ve got some nice weather. It’s a little cooler earlier this summer. But we’re headed out towards cem. Cem a nice weather at the end of september and october. September, october. There are good months. You’re right. I know, i know. I’ve heard that from others. I’ll get there because it was, like twenty. I think twenty fourteen may have been the last time was that when we met, i think it was twenty fourteen the time we met, i think quite awhile. Yeah. Yeah. Uh oh. But then i had another trip, and then you were. I think you weren’t available. Yeah. You blew me off my last trip. I think that was two years ago. Twenty. Um, okay, so we’re talking about donorsearch vice funds. You have some interesting stats about how popular they are that they’ve grown oh, since twenty twelve, give us give us just some basic numbers so we know why we should be paying attention to these things. Sure. And i think some of your listeners may know that that we have to start paying attention to donorsearch buy-in funds and and i’ll i’ll use the lingo dafs if that don’t get me into jargon, no that’s that’s approved. Yeah, okay, so dafs sir, like the fastest growing recipients of charitable giving now in the in the u s so donations of increased from just under fourteen billion in two thousand twelve two. Twenty three billion in two thousand sixteen. And meanwhile, sort of in two thousand sixteen, we’ve seen the top. I think six, uh, charities or six recipients of charitable giving in the country were dafs so, you know, the biggest one being fidelity charitable out doing united way and and american red cross and everyone else. So six out of the top ten recipients of charitable giving were dashed. Something to pay attention, tio sure on also the interesting that the growth rate so you cited uh, fourteen billion in twenty twelve to twenty three. Billion. Twenty, sixteen that’s. Two thirds growth, sixty six percent over five years, and individual giving over that was five years grew by only fifteen percent. Yeah, and you’ll see a lot of reports now saying, suggesting that they’re fewer and fewer donors e-giving teo to public charity, that air doing direct service work. Now, the big donors are still contributing, but fewer numbers of smaller donors, and part of that because of the tax incentive that are changing. But, you know, that’s, huge growth in the donor by fun, you know, in light of those numbers of lessening donors, the growth of donor advice on sixty six percent over five years. Any investment manager would love that. Yeah, no kidding. Shoretz naturally. My my portfolio would certainly love that. My portfolio buy-in buy high sell low. That seems to be my mantra if you look at my portfolio over the lifetime of my portfolio, um, so you and there are a couple of reasons why these air so attractive to individuals ? You know, you get that immediate tax deduction first ? Yeah. I mean, it works great. From the donor’s perspective from, you know, from the donor, you make a contribution. You khun taken immediate charitable contribution deduction, but you get to practically kind of control that gift on and decide who you want to ultimately give it out to in future years, even if it’s going to be two years later, five years later, ten years later, twenty years later, you can sort of hold it in that fund. Now, legally speaking, you make that gift immediately, and you get the deduction. Because your gift is complete. You have given it to a charity in the in the year you made that gift. But practically speaking, that charity that’s, the dafs sponsoring organization, that donor by sun sponsoring organization, which typically is associate it either with a financial services company like fidelity. Charitable that’s the biggest, you know, charity that that receives gibson in the world or hyre you can give it to a community foundation that’s, the other big sponsoring organization of bath and so legally they have control of the money. But practically speaking, they’re probably going to listen to where you want to make the donations to so long that it’s illegal distribution later, so long as you’re going to make the grant toe another public charity, even if it’s you know your intention to give it twenty years later, that’s okay ? Yeah, the donor’s make what’s called a recommendation to the to the charity fundez holding their donor advised funds and ninety nine times out of one hundred. The recommendation is approved. I think basically, they’re just looking to make sure it is a bona fide five o one c three charity that’s being recommended. And then the fund hyre approves that recommendation and makes a gift from from its fund to do that to that five. Twenty three ? Yeah, i think that’s right, tony. So, you know from from the sponsoring organizations by then they might have a little bit more in terms of little legal obstacle. Teo to live up to but from from the perspective of the donor, a lot of them feel like it’s still their money, they still get to control where they’re going to make a grant to even after they’ve taken the charitable contribution deduction, right ? And it’s, you know, apart from sort of getting an immediate charitable contribution deduction, it also allows him to do other things like it allows them to give annually i’m sorry it allows them to bundle up their donation, so maybe they give to a charity to the dafs sponsoring organization like once every five years, and they do that because the incentives for getting a charitable tax deduction have drop because, you know, i don’t want to get too technical, but the rise of the standard deduction that took effect earlier this year and we talked about that that already means only five to ten percent of taxpayers actually get a charitable contribution deduction anymore for making a gift, because the standard deduction is higher than their itemize, but by bundling there donations and say, bundling them up. So instead of making a five thousand dollar gift every year and not being able to use that to get a deduction, they can decide to make a twenty five thousand dollar gift over five years, and then that twenty five thousand dollars now, combined with their other itemized deductions, is big enough to get the value that deduction so they can use the dafs to give every five years. But the charity that they want to be the beneficiary of the fund could receive money from the dafs on an annual basis after they do that, so to the charities that looks like the donor is giving to them every year once that funded the death. So another another useful way that that an individual can use the donor advised funds that’s created by the new tax laws understand, right ? You gross it up to get the get the hyre deduction compared to the standard, and then you can give it out, uh, slowly over time, all right, but make it make it the gift huge big enough to take advantage of the larger deduction at one time or maybe a couple times over several years, exactly in the charity might like that, too, if they’re like saying, you know, we actually don’t need your annual contribution because we’re actually saving up to buy a building or to create this brand new project. So if a year five you give us the larger gift, we would really appreciate that, so it can work for everyone involved as well. Okay, we’re going to take our first break, but when we come back, we’re going to talk about this feature of being able to latto it’s, make your gifts directly to the to the charities over over lots of time and the constant nation that that causes tell us for pete’s sake. Oh my goodness! Think of the companies you can refer and start asking them. You’ve heard the charity testimonials. You’ve heard the company testimonials, it’s time to claim your own long stream of passive revenue from tell us fifty percent of the card processing fees that tell us gets from the companies you refer. Go to you fifty percent month after month after month. That’s your long stream of passive revenue. Start with the video at tony dot m a slash tony tell us now, let’s, go back to jean takagi. Okay, uh, sometimes i don’t remember where i am. But this time i do. So i made because i said it, okay, so this feature that you can give over time over many, many, many years causes consternation in the non-profit community. Do i have that right ? Yeah, you’re right. So what ? You know what ? If the donor is e-giving annually to their donors buy-in spun and saying to the charity, you know, well, i’ll give to you at the end of five years at the end of ten years from my donor advised funds, but, you know, in five or ten years that donor, right have other priorities, and so that charity that used to get the annual gifts from that donor might not be on that list anymore, and so they can’t really think about that in their budget, so it does create some concern by charity. Yeah. Now, in that case, i mean, if i were advising them, i would get that pledge in a written document and the legal enforceability of that, you know, we can we can write us that it’s got some enforceability weaken. We’re relying on your promise, we’re going to take some administrative actions. Buy-in reliance, you know, maybe there’s a small consideration, maybe there’s a small dahna yeah, so, you know, we can we can we could make that legally enforceable in a lot of states, if not all the states, yeah, i think that’s true, tony, but then you have to think about whether even if you win the battle with the one donor-centric it in court, what that does in terms of the long term and your relationship with every other donors who now knows you sue donors when i don’t clean get yeah, yeah, i mean, you got a definitely are you ? Yeah, i know you’re right. This is an interesting conversation because planned e-giving i’ve dealt with this and way we deal with it as gifts come, and i’ve dealt with the aftermath of it after afterwards, i’ve never had a client that that maybe i shouldn’t reveal this. I don’t know clients non-profits are very reluctant to sue their donors. They you rather work something out. Andi it’s true, i haven’t had a client that well, first of all, i haven’t had that many clients we have to enforce we had where we had to force agreements against, uh, right against the donors and that’s, very rare that you have. To hold this document up that they signed years earlier and remind them of the enforceability of it on ben, you know, charities are reluctant to do it and have to be, i don’t have to be a scenario where there’s a lot of money at stake and it’s a pretty clear case because you’re right, the pr is very bad, and, you know, it may never even make the popular press, but just in donorsearch coll’s within that individual organization, you know, things get around, especially if it is a large gift from a prominent donor. Back-up yeah, and especially that donors still alive tony versus in a plan gift where you might be contesting it against airs or for other recipients of that. But when the donor is still alive and saying, i don’t like your charity as much as i used to, i still like you a little bit, but i don’t want to give you my full gift that i thought i wanted to give to you that’s a tough i got a raise, so there is a practical aspect too the enforceability of these agreements that i’m saying can be made legally enforceable, but but the enforceability and itself sometimes is enough of a persuasive factor to a donor that, you know, i think they keep up their commitment when, when they think they might not have otherwise might never go to court. Yeah, but the donor might see the seriousness of the donation and know that he would hurt the charity he or she would hurt the charity if they didn’t go through with that pledge because maybe relied on it to partially constructed building, and you need the full funds to finish construction. Otherwise you can’t do it, and you’ve wasted a lot of money and may be created some lawsuits against you for not being able to do it. So the donors, you know, relying on that donor’s money to your detriment or twenty to your detriment is is the basis for a lawsuit, and that would hopefully be convincing to a donor, even without the lawsuit part that you relied on on their promised teo, meet their place. I like heidtke idea. Yeah. Okay. Um but the bigger issue so let’s take it away from an individual charity. The bigger issue is that there’s. A lot of money parked in dahna. Advice, funds and we really don’t know how much and the what bothers congress and a lot of people in the charity community is that this money is parked there and it’s not getting to the five oh one see threes that it’s that it was that the donor earned a charitable deduction for giving to you it could sit indefinitely literally, right ? Yeah, so under tax laws, it could sit there indefinitely. So the donor advice fun sponsoring organization is not legally compelled to make any distributions at all. If the donor says nothing about it for ten years, twenty years than the sponsoring organization doesn’t have to do it. Although some of started to say, you know what ? We’ll have an internal policy that says, if you don’t, if you’re completely inactive your fund, we will start to make distributions based on what information we have of where you want it to go, so they’re trying to do some self regulation there, but there are no external laws right now that required donorsearch funds, teo, make any distributions at all. Yeah, well, i suspect they see a lot of a lot of the the the concerns, especially from the isat, the senate finance committee, charles grassley, chuck grassley is chair of is that senate finance ? Yeah, right, well, the senate finance committee might be concerned with that asshole, but they’re really the argument is going on with academics and professionals and big organizations, including community foundations and these big financial institutions all over the place. And you’re seeing a lot of books on the non-profits sector now sort of criticizing no philantech be including through donorsearch buy-in funds and the controls that these donors have over large amounts of money even after they’ve taken the deduction. Interesting, interesting discussions out there now now it za parallel to me, you know it’s, it’s, it’s similar to a lot of the planned gift’s a similar principle or policy around a lot of the planned gif ts so take i’m thinking like the charitable remainder trusts or charitable gift annuities where basically ah, person let’s use the trust because that’s not that’s, not charity specific. So let’s use that example. Someone creates a charitable ranger trust. They leave the option. Teo name some charitable beneficiaries a cz remainder beneficiaries which means at the death of the donor what’s left, goes to these charities and in the during the life of the donor or donors, sometimes a lot of times, it’s a couple there getting income for their getting income. So getting income for life when they die, what remains goes to charities, and they reserve the right to change your those charities might be now they get an immediate income tax deduction for that. When they create that in the year that they create that charitable remainder trust. So i see a similar policy. No it’s it’s. An immediate deduction for a long term gift to charity. Although there is some guarantee because the difference is that the donors are going to die and when they die, the people getting that people died getting the income die, there will definitely be a gift to charity. So there’s there’s that right there is that limiting factor. But you could see the policy similarity, right ? Yeah. That’s. Definitely some similarities. But i think that the donor advised funds are more concerning, particularly because when you do a charitable remainder trust, for example, your deduction is going to be the value of the gift that ultimately is left over for the charity using you. Know, like actuarial tables. Yeah, that present value there going ? Yeah. So what is it going to be worth ? The likely could based on average, like bands and stuff. What will the charity likely get ? That’s what you can deduct the donor advised funds, especially if you give gifts of like real estate or privately, closely held stock, you get to not pay any capital gains on it. If you’re a donor on, then you get a deduction of the fair market value, which is big because if you gave it to a private foundation, if you formed a private foundation, you don’t get that gift a fair market value, that deduction of fair market value essentially get the deduction of cost. So being able to sell something that, you know, wildly appreciated in value and getting the fair market value deduction and not having to pay any capital gains on it and then still having the practical control of where to ultimately spend that money. Um, you can see how that might be even more attractive. A donation vehicle tow an individual donor, but why ? At the same time they’re concerned some from from congress and from from others. Who think that they are, you know, advocates for the nonprofit sector of saying is really going to be put to good use for charitable use, or is it going to sit in these funds, particularly in funds that are run by some of the financial institutions where their continued to get, you know, investment season stuff that that air being generated because they’re continually being invested ? You know what charitable good are those funds doing ? You know, professionally, you know, if they’re if they’re held by fidelity and being managed and no promise of went to distribute. All right, hold that let’s, take our last break hoexter give, you’ll get more revenue because they make e-giving simple if your donor’s consent a text that can make a donation not only simple, affordable and secure ceo chadband oid very smart guy, he set up a smart company. You want to get the info, which you should, you should want to get the info text, npr. Two, four, four, four nine nine nine and you will ah, not only get info, but also be able to claim a special listener offer. We’ve got several more minutes left for fund-raising no, not fund-raising dahna advice funds where’s, my where’s, my lousy intern. I wish i had one. We’re not talking about fund-raising that was a big mistake. Sorry, jean. We’re talking about dahna advice funds. I need an intern. Esso, i have someone to blame for this poor copy. All right ? Yeah. Yeah. The fair market value. Yes. The donor donor advised funds gives a fair market value. You made several points, but the one that hit me the most because i do plan giving is dahna advice fund to get a fair market value charitable deduction immediately plan give to get a present value deduction based on your life expectancy. So it’s going to be less. And if you hold the money in your donor’s vice fund for twenty years, it’s, in fact worth less, then it was in the year you put it in. But you’ve got a face value fair market value deduction, didn’t you ? Well, actually, you know what ? What you holding to donorsearch buy-in fundez might appreciate wildly. So if you put a, you know, a million dollars investment or even a ten thousand dollar investment into a donor advice fund of apple stock, you know when it was nothing, and you held it for ten years, and all of a sudden you’re sitting on, you know, potentially hundreds of millions of dollars and nobody take capital gains tax for that, right ? But you are, you know, the donor advisor or the donor of one hundred billion dollars fund, you know, that’s held by financial institutions, affiliated charity sponsoring dafs sponsoring organizations. And, you know, you get all sorts of benefits for, you know, being, you know, the donor to donorsearch by son. You know, you get to go to the fancy cocktail parties and gala charity gallas and people swooning all over you because, you know, you can make huge distribution to the to the folks if it was your own money, but not your own money anymore. Yeah, well, it’s, not yours, right ? It’s yours to decide what to do with, but it doesn’t belong to you. The recommendation of where it should go belongs to you. Now, of course, on the other side of that, you could have invested in. Annoy ll start. I’m trying something the stock that crashed terribly, but you might have invested in something that depreciated on dh there’s going to be a lot less left for charity because you didn’t invest well, yet you got you got a deduction for what you put into the fund initially. So in that case, the charities really do lose the public loses out because a lot less money is going to go to charity. Then we gave you a deduction for sure that’s true as well, and i don’t mean teo be sort of a nay sayer of the donor advised funds because there’s a lot of good things that they do and, you know, they’ve been around for, like over eighty years, really, with community foundations and, you know, the original intent was sort of to collaborate. Have donors collaborate with the advice of the community foundation about how they could sort of use their money’s on dh use their donations together to fund some of the most important things to benefit that community. And, you know, that aspect of donor advised funds is, i think, a wonderful thing and the, you know, a lot of critics. Who are arguing against the critics of the donor advised funds so the ones who are the pro donorsearch buys fundez woobox are saying, you know, a lot of this money that is going into donordigital fun would otherwise not go into charitable goods anyway, they might they might never make the charitable sector. S so it’s not like saying that, you know, people are e-giving too don’t advise funds, and it never gets charity that way that, you know, the counter argument is some of those funds would never get to charity unless they went through donorsearch buy-in funds. And by the way, our distribution rate is much higher than private foundation grade, so even if the donor gave it to, you know, created their own private foundation, then they’re just required to invest or grant out essentially five percent of their investment assets per year and don’t advice funds are granting out, on average, somewhere about twenty percent of their assets for years, so we don’t even have a problem here. Why do you want to create rules to limit what we’re doing but there’s a counter to that as well ? That says well, that twenty percent includes donorsearch vice funds e-giving toe, other donor advised funds and that’s like when you want to shift your donors fund from fidelity to vanguard xero or to the silicon valley community foundation or did it new york community foundation ? You’re just moving money around from one financial talkto another one charity to another, but nobody’s actually putting it to use teo, do good for the community that the other arguments and counter arguments the other problem with that look atyou doing both sides. The other problem with those measures of distribution are they could be skewed by very large gif ts that come from one or two funds while lots of small funds aren’t making any any distributions jean, we have to leave here. Maybe we should have planned this for a whole hour. But we hyre is this your lackluster host ? He’s ? Jean takagi, managing attorney of neo non-profit exempt organizations law group he’s, our legal contributor just following for god’s sake non-profit latto blood dot com and at g tak thank you very much, gene. Great talking to you next week it’s website day https and getting more gift from your sight if you missed any part of today’s show, i beseech you, find it on tony martignetti dot com, responsive by pursuant online tools for small and midsize non-profits data driven and technology enabled. Tony dahna slash pursuant capital p weinger cps, guiding you beyond the numbers. Wagner, cps dot com, by tell us. Credit card and payment processing, your passive revenue stream. Tony dahna slash tony tell us and by text to give mobile donations made easy text npr to four, four, four, nine, nine, nine. Creative producer is claire meyer, huh ? Sam liebowitz is the line producer, shows social media is by susan chavez. Marc stein is our web guy. How much mark silverman is our web guy, and the music is by scott stein. She we will be next week for non-profit radio. Big non-profit ideas for the other ninety five percent. Go out and be great better than me. You’re listening to the talking alternative network, waiting to get a drink. Nothing. You could. Hi, are you interested in blockchain technologies and crypto currencies ? Then tune in here on talk radio. Got n y c with me, david every friday, eleven a, m twelve p, m eastern time. As we answer your questions and interview, great guests live on internet radio on building the blockchain where you can catch the blockchain revolution. Oppcoll you’re listening to the talking alternative net, are you stuck in a rut ? Negative thoughts, feelings and conversations got you down ? Hi, i’m nor in sumpter, potentially ater tune in every tuesday at nine to ten p m eastern time and listen for new ideas on my show. Yawned potential. Live life your way on talk radio dot n y c 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. Are you into comics, movies and pop culture at large ? What about music and tv, then you’re in for a treat. This is michael dole. Check your host on talking alternative dot com. I’ve been professionally writing comic books, screenplays and music articles from fifteen years. Catch my show secrets of the sire at its new prime time slot. Wednesdays, eight p m eastern time, and get the inside scoop on the pop culture universe you love to talk about. For more info, go to secrets of the sire dot com. You’re listening to talking alt-right network at www. Dot talking alternative dot com, now broadcasting twenty four hours a day. Are you a conscious co creator ? Are you on a quest to raise your vibration and your consciousness ? Um, sam liebowitz, your conscious consultant, and on my show, that conscious consultant, our awakening humanity, we will touch upon all these topics and more. Listen, live at our new time on thursdays at twelve noon eastern time. That’s, the conscious consultant, our awakening humanity, thursday’s twelve, noon on talk radio dot. You’re listening to the talking alternative network. Duitz buy-in