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Nonprofit Radio for February 14, 2022: Fundraising Amid Polarization

Drew Lindsay: Fundraising Amid Polarization

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

 

 

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

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

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

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

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

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

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

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

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

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

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

[00:09:47.61] spk_1:
Alliance,

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

[00:09:56.36] spk_1:
alumni,

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

[00:30:28.74] spk_1:
right?

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

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

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

[00:31:55.14] spk_1:
absolutely

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

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

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

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

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

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

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

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

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

Nonprofit Radio for November 15, 2021: Bitcoin & The Future Of Fundraising

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That’s the new book by Anne Connelly and Jason Shim. They share the potential in cryptocurrency donations and explain simply, how to get started. Private keys; public keys; wallets; and exchanges. It’s time to learn what’s inevitably in your nonprofit’s future.

 

 

 

 

 

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Transcript for 567_tony_martignetti_nonprofit_radio_20211115.mp3

[00:00:02.84] spk_1:
Hello

[00:00:10.84] spk_2:
and welcome to

[00:03:09.04] spk_1:
tony-martignetti non profit radio Big nonprofit ideas for the other 95%. I’m your aptly named host of your favorite abdominal podcast. Oh, I’m glad you’re with me. I’d suffer the embarrassment of hydrogen itis security Eva if you rubbed me the wrong way with the idea that you missed this week’s show, Bitcoin and the future of fundraising. That’s the new book by ANn Connolly and Jason shim They share the potential in Cryptocurrency donations and explain simply how to get started private keys, public keys, wallets and exchanges. It’s time to learn what’s inevitably in your nonprofit’s future. I’m tony state too, Veterans Day, We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o here is Bitcoin and the future of fundraising. It’s my pleasure to welcome co authors to nonprofit radio and Connolly is faculty at singularity University. She’s worked at Doctors without Borders and been a member of their board. As director of fundraising at Dignitas International. She set up one of the world’s first Bitcoin donation programs and is certified in strategic disruption from Harvard business school, Which sounds like a degree in anarchy. We’ll talk a little about what that what that’s about. She was named one of Canadian broadcasting corporations. 12 young leaders in changing. Canada and one of the 50 most inspirational women in technology in Canada. She’s at an underscore Connolly and welcoming back Jason shim he’s director of digital strategy and transformation at pathways to education. Canada his experience spans the nonprofit and academic sectors helping organizations stay ahead of the technology curve In 2013, he led pathways to become the first charity to issue tax receipts for Bitcoin donations. He’s an editor at ledger, a peer reviewed scholarly journal at the University of Pittsburgh Pit, publishing original research on Cryptocurrency and Blockchain technology. Jason is on the board of intend where amY sample ward, our listeners know her is Ceo and Jason is at Jason shim together they wrote the book Bitcoin and the future of fundraising. A beginner’s guide to crypto, crypto currency donations and welcome to non private radio Jason. Welcome back.

[00:03:12.14] spk_0:
Thank you so much.

[00:03:13.50] spk_2:
Thanks for having us.

[00:03:52.24] spk_1:
It’s a pleasure pleasure to have both of you. Uh and let’s start with you, the the Cryptocurrency is like a new technology like at one time the telephone and talking movies, right? Talkies and the T. V. And internet and cell phones. Uh these technologies all had their their naysayers and those who thought it was just a fad, you know, talking movies, those will never last. So what do we what do we say to folks who are naysayers. Uh thinking that Cryptocurrency maybe it’s just a fad or it’s too dangerous. How do we allay those concerns about this new technology,

[00:04:43.64] spk_0:
It’s very reasonable for people to be nervous about new technology. I mean I can remember my parents talking about the Internet back in, you know the early to late 90s and saying, you know anyone will be able to look up the recipe for a bomb like we need to stop this, this is dangerous. And you know, that’s true in today’s world, anyone probably could look up the recipe for a bomb, but no one would ever consider saying we should stop the Internet. It’s a bad thing for society. Um And I think that’s where we’re at with cryptocurrencies as people are still in that phase where they’re learning about maybe some of the scarier elements. Uh and they haven’t quite gotten to realizing just how powerful and incredible this technology is, both for themselves, but also for society and people around the world who might not have access to the same financial services that some of us do.

[00:04:53.64] spk_1:
Yeah, that’s a very interesting point. Uh let’s say a little more about how this can be liberalizing for a lot of folks, a lot of parts of the world where banking infrastructure is not something they take for common or, or financial infrastructure broader than just banking is not, is not something that they take for granted the way those of us in the, in the west do.

[00:05:43.04] spk_0:
Yeah, I think there’s two sides that really is for many of us in North America, we have easy access to banking services and um but even in the states, more than 25% of people are unbanked, they don’t have access to that. And when you look around the world, those rates are even worse and so many people just operate in a cash economy, it means they’re locked out of any sort of loan systems or being able to better themselves through more formal financial services and then there’s a whole set of countries where people can’t even trust their national currencies. So if you look at places like Argentina, Iraq Venezuela, sorry Iran where inflation is astronomical Even right now in Canada, inflation is more than 4.5%. But if you look at Venezuela in 2018, their inflation rate was hundreds of millions of

[00:06:08.39] spk_1:
was not more hundreds of millions or billions of percent. Yeah,

[00:06:53.04] spk_0:
it was wild. And so you know if you can imagine your life savings disappearing overnight simply because the government is printing too much money or isn’t a good custodian of the national financial system. That’s the reality for a lot of people. And so I think when I think about Bitcoin more than anything, it’s not. Its goal is not to replace national currencies. Its goal is to provide people with choice so that you know, if they’re really happy with the currency their government is providing, they can certainly use that. But if they don’t have access to it, they don’t have access to banks or they don’t trust their government to do a good job of managing their money. They have another option. And that’s what for me is so exciting is it’s this global permission list system where anybody can take part um and use it to fundamentally change their lives.

[00:07:10.44] spk_1:
So Jason is it is it as simple as just needing an internet connection for anyone in the world to to participate in in cryptocurrencies?

[00:07:12.44] spk_2:
Yeah, I mean that’s pretty much the foundational building block that you know, if you have access to an internet connection and you can download, you know, the uh you know, there’s a few different approaches of accepting Cryptocurrency. But yeah, it starts with an internet connection in terms of getting getting access to that that wider network for sure.

[00:08:05.44] spk_1:
Okay. Um uh the uh I did a quick search of just comparing the us and Canada and adoption rates are much higher in uh in Canada than than in the us. I found like 13% of Americans Have bought or traded Cryptocurrency but it’s it’s like 30% of Canadians. So much much wider adoption for our well for your country, for our neighbors here, for me, for our neighbors in the north, for for your country, for the two of you, any any explanation as to why it might be 30% in Canada vs just 13 in the us.

[00:08:09.94] spk_0:
I think what might be Oh sorry, go ahead.

[00:08:12.24] spk_2:
Go ahead. And

[00:08:12.63] spk_1:
I

[00:08:48.84] spk_0:
think what’s even more exciting really than comparing the United States and Canada is looking where it’s growing globally. You know, some of the greatest adoption rates are in places like Nigeria or South east Asia. Um and that’s really demonstrative of, you know, when you have locations that maybe aren’t providing the financial services that we have in north America, the rates are exploding um from a Canadian perspective, I know people are really keen to explore new technologies and we also have a massive immigrant population that wants to send money back home. Um so trying to find mechanisms that enabled them to do that without paying fees of 8-12% through Western Union. The coin is a really great option for a lot of those people.

[00:09:28.14] spk_1:
Mm hmm. Alright. Uh now and I was, I chose you but you didn’t answer. You didn’t answer the question. So I’m gonna try Jason although it was anarchist. Uh that is that the degree in anarchy. I knew it. Um what is what we call it? A strategic disruption. Alright. The anarchy degree or certification. So uh, Jason any, any, do you have any insight into why so much more widely adopted in Canada than the U. S. Not that what I said was not valuable. I, I appreciate what’s happening in *** et cetera. But I just wanted to bring it, I don’t want to try to bring back to to the north America here.

[00:12:01.94] spk_2:
Yeah. In terms of adoption rates like what I found over the years is that, you know, when, when tech companies in the past have been looking for like pilot areas that I, I know that Canada has stood out as being, you know, the place where, you know, um, initial kind of rollouts or pilots that have happened. So, you know, when I know that when, you know, folks are testing out like new apps, you know, for their organizations, it’s a multinational organization, it’ll tend like what I’ve observed is that it has tended to be uh tested in Canada first and I, I imagine, you know, that may reflect, you know, that it’s a fairly, you know, uh text avenue connected, you know, uh population, but also uh there were some hotspots for Cryptocurrency, you know, in its early days, I mean, ethereum was born out of Toronto battalion, peter in is, you know, Canadian the founder of ethereum and uh there there are several clusters in Canada that, you know, a lot of the initial developments encoding around, you know, Bitcoin and ethereum and subsequent projects uh I think really grew out of that. So I think what we’re seeing in terms of the increased adoption rates is an extension of that where uh you know, not unlike, you know, early silicon Valley where, you know, a lot of, you know, tech development happened there that, you know, for, I think the early 20 tens, um uh Toronto really served as kind of, that, that initial hub in those communities that really got engaged, so no surprise that, you know, subsequent, you know, companies emerged and uh, you know, adoption uh may have been a bit quicker here. Um, but you know, I think that we are seeing that definite dispersion where there are multiple uh you know, crypto hubs that have emerged in the last 10 years for sure. But yeah, I mean Canada is also a wide place of you know being able to send uh send payments um easily and by a practical example and this isn’t particular to Canada, you know specifically, but you know when when working in international context, you know, hearing from, you know developer contacts in the local community that when you’re considering paying developers overseas and all the options that available like Bitcoin is emerging as you know uh when uh when when speaking to folks about you know how they’re managing payments, you know, Bitcoin is often an easier way to pay um developers in other parts of the world than it is going through traditional payment mechanisms um because of that the lesson administration and at times even just the availability where you know trying to pay someone, we’re banking systems are limited, you know, as I mentioned earlier. Uh so I think all these things combined have contributed to higher um you know, Canadian adoption as you pointed out.

[00:12:39.04] spk_1:
Yeah, interesting. All right, thank you. Um so you mentioned ethereum or ether being the the second most popular Cryptocurrency behind Bitcoin, Jason was was Bitcoin originated in in the States or was that was that also in Canada? That’s uh interesting somewhere else. Well no, I’m sorry, it was another country, wasn’t it? Uh, Bitcoin,

[00:12:47.04] spk_2:
I location wise, I think it’d be best described as um kind of Bitcoin emerged online that, you know, to this day, the, the, the founder, founder or founders of Bitcoin. Um, you know, uh, so in terms of like a specific location, videos created, uh, you know, Bitcoin would have been online and then, you know, Ethiopia, many of the major players who are known were based out of Toronto.

[00:13:34.64] spk_1:
Right, okay, okay, that’s right. You say in the book that the founders of Bitcoin are still unknown to us. Right, okay. All right. Um, and with some trepidation go back to you. Uh, so since I made fun of this, tell me about what a certificate and strategic disruption is. What is that? I

[00:14:48.64] spk_0:
think the key element about it is it helps you develop a mindset about how to think about moving forward with your organization or your company, where you try to essentially disrupt yourself. And that’s why companies like Apple were so successful is, you know, they had a product and a product that worked, they could have just, you know, kept producing that same product for many years until some other company came by and beat them out and the company would go under, but instead of waiting for someone else to come out with a better product, like she said, hey, we’re going to actually cannibalize our own offering. We’re going to make a better product. So you know, we’re not going to just make the ipod, We’re now gonna make the iphone, Um, and our customers are gonna buy that instead. And so they were constantly creating new and imaginative things and changing the lives of their customers and so strategic destruction is really that. And you can apply the same type of mentality in the nonprofit sector and say, listen, you know, we’ve got a pretty good fundraising program. We’ve got major gifts that come in. We’ve got direct mail that goes out and um, we can sit here for 20 more years and raise money this way. But the nonprofits that are going to do the best in the long run are the ones that really look at their program and say, hey, let’s, let’s actually shake up the way that we’re doing things. Let’s try some really new and innovative stuff. Some of it will fail. Some of it will succeed spectacularly. And that’s actually gonna help us future proof the organization, um, and help us be, you know, essentially a stronger longer lasting organization moving forward.

[00:17:06.64] spk_1:
It’s time for a break. Turn to communications. Communications. It’s in their name. So they don’t only do the public relations and the media work that I’ve talked a lot about communications is so much more vast than that. So think about documents, documents you used to communicate case studies, your annual report, white papers turn to, can create these documents for you. They’ve got a journalism background, a writing background. They know how to understand your, your tone, your core messages and how to bring those out in your written documents. So you got this content that needs to be created and it’s not getting done. You need help think about turn to because your story is their mission there at turn hyphen two dot C. O. Now back to Bitcoin and the future of fundraising. Let’s uh, let’s, let’s bring it back to Cryptocurrency and north America. Give us give folks some motivation uh, in terms of raw numbers and potential growth. Uh, so we can help allay fears because you know, aside from it being a new technology, you know, lots of folks get the, uh, pay me $2500 in the US in Bitcoin or else I’ll release these bad things about you on the internet, you know, and I’ll share your contacts with their, you know, etcetera. So there’s some that contributes to some of the fears, these, uh, these um, uh, you know, email scams. So help help allay some fear with some hard numbers about where crypto is and where Bitcoin is maybe specifically and about the future.

[00:19:00.64] spk_0:
Yeah, I think the best numbers I can help relay are really numbers around donations that have already happened. And so you know, last year, the talent veteran who is the founder of ethereum, He gave a billion dollars to Covid relief, a billion with a b. So tell me about any other billion dollar donations that you heard about last year, you know, in any country around the world. And so, and that’s just, that’s, you know, it’s not the only one we had. The Pineapple Fund gave away $55 million borders Australia just got a $35 million dollar gift last week. Um, so the numbers that I really want to convey our, that, you know, there’s a community of crypto donors that are waiting to make these gifts that have just enormous amounts of money and a real passion for changing the world. That’s why they got into crypto because they want to make a difference. And so now they’ve got all this money and they’re trying to find organizations that they can actually give this money to. And right now that’s, that’s a challenge. Like right now there’s some incredible organizations accepting. But in order to find charities that are accepting crypto, most donors will google, they say which charities accept Cryptocurrency and then they pick one off the list. And so there’s this amazing opportunity for charities that are out there are nonprofits to actually uh, connect with this donor group that’s really being ignored by most of the community and really make deep relationships with them because they’re very different from traditional donor groups, how they like to give, what interests them, that type of thing. But the potential for their giving is just astronomical and the potential to create change together. Um, is what really gets me excited

[00:19:02.91] spk_1:
about cryptocurrencies

[00:19:04.01] spk_0:
in the space.

[00:19:30.44] spk_1:
Yeah. At the end of every chapter, you have a little call out box about a donation, a big number donation that was made in Cryptocurrency. Um, but yet the penetration rate, I think in the States, there’s only three or 4% of charities only are accepting, uh, Cryptocurrency donations. Uh, and some of them big ones that you name our United Way Red Cross. Do you want to, do you want to shout out a couple in, uh, in Canada that are accepting.

[00:20:58.14] spk_0:
Yeah, absolutely. I mean pathways to education of course, which is Jason’s organization was one of the first war child has been accepting for a long time. We have organizations like the Mississauga Food Bank, which is a, you know, a major site pita United Way up north as well as accepting. So it’s not the case that there aren’t, you know, well recognized organizations with good brands and, and that are well trusted. There are many names. Um, I think what sort of holding some organizations back is just, is education, You know, we’re at the stage where Bitcoin can be a little bit scary. Um, people don’t necessarily feel comfortable, They’re not sure whether it’s gonna be worth it. Um, and, and that’s really just a small hump to get over, you know, you can watch a lot of great videos online to learn about it. You can, you know, get the book that Jace and I put together, which is specifically written for fundraisers who don’t know anything about crypto and want to get started. Um, but more than anything, the best way to kind of get excited and start learning about cryptocurrencies and is just to buy some And you don’t have to go out and buy, you know, a $10,000 worth or anything just by a dollar’s worth of Bitcoin. Um, think of it as, you know, investing in evening of your time and learning something new and fun. Um, and that will really help you understand, you know, how it works, what it’s like, what you could do with it. Um, and uh, it’s a great way to get your foot in the door.

[00:21:29.44] spk_1:
Yeah, and Jason you in the book, you to recommend that as also establishing credibility with the crypto donor community is buying some, buying some on your own even before your organization has a, has a mechanism has set it up so that you’re not, you’re not just testing your, your own organizations, uh, infrastructure for accepting these gifts, we’ll get to that, but just buying and buying some on your own sounds like gives credibility to you, gives you credibility among the donor community

[00:23:52.64] spk_2:
for sure, and I think that many who are involved in the Cryptocurrency community, You know, I think it goes to really, how do you build that deeper relationship and have a conversation with folks that it’s it’s not just, you know, solely talking about, you know, the, you know, yes, there’s a donation part, but it’s also, you know, I think, you know, being able to speak knowledgeably about it, um, and, you know, as as people are involved in it and interested, you know, it, um, showing up in the communities as well. And I mean, that that that’s another kind of tactic that, you know, we do mentioned, you know, in the book and, you know, have seen used to to get the fact that, you know, if if you’re going to engage, you know, communities of donors that are very interested in, you know, something that they have self identified that, you know, before folks get into it. You know, folks typically, you know, do a lot of research and um, and you know, form, you know, uh, in person communities are online communities around it and just showing up in those spaces and being like, yeah, you know, I’m often, what I found over the years is that, you know, when participating in, you know, those Cryptocurrency spaces and everyone’s doing introductions, it was a few years before I was, you know, for a long time, you know, was the only charity in the space of reasons like, hi, you know, I work for a charity. So what brings you here and immediately there’s a way to connect over that and focus get really interesting. It was a few years before a second charity arrived. And you know, that was an indication to me that, you know that this was growing in awareness and such. But you know, I think that having that background of even having purchased a small amount, you know, gives that it gives that experience and credibility around, you know, it’s not just you know, saying, hey, you know, uh can you make a donation? Okay thanks, bye. It’s you know, how do you cultivate that longer term relationship where we’re part of something bigger here? Like there there’s um Cryptocurrency, you know, emerging as uh as a new asset class as a way to facilitate transactions that, you know, uh bigger, bigger possibilities. And in terms of, you know what we’re seeing with um uh with the ways that people are transacting, interacting, you know, uh, N. F. T. S around the corner. We haven’t touched on that yet, but it’s uh it gives more surface area for to connect with people on and you know, I think that, you know that one building a relationship, you know, having having more of those commonalities is also important.

[00:24:41.14] spk_1:
So, and mentioned the the fact that a lot of lot of crypto donors now are just Googling, you know, where can I make a crypto donation, but we wouldn’t expect that to continue as the penetration rate becomes higher among charities. Mean, so it is going to be building relationships and, and eventually it’ll become just another way of making a gift from folks that know, you, you know, like, like writing a check or transferring stock, eventually they’ll be the world will be just, you know, it won’t be, where do I make a donation by, through crypto?

[00:25:03.94] spk_0:
It’s no different really than, you know, when charity started adopting online donation platforms and, you know, website donation forms in the early days, there weren’t that many that had them and people wanted to use their credit card to donate online would have to figure out which charities made that possibility. But today, no charity would ever think of not having an online form. And so really it’s just, it’s just a timing thing, we’re just still in the early days and very exciting days. And because of that, there’s an incredible opportunity for the organizations that do get on on board early

[00:26:20.14] spk_2:
and, and, and to that point, like, I I think that, you know, when, when we think about, you know, early days when there were opportunities to donate online that, you know, I think there was a period in which organizations would have, you know, um competed on, you know, features that even just having the ability to accept credit cards online would have set you apart and, you know, as more people, you know, adopt online credit card payments, then you have to, um, you know, compete on a different kind of, uh, on like service provision. So, you know, the, the ease for which someone can make it right. And you know, I think we’re seeing that similar transition where, you know, right now, it’s still that, that phase where it’s like, okay, you know, does someone accept it? Yes or no? And that, you know, as that, um, as that number increases, then it’s going to be a different proposition where it’s like, alright, who, who does it with the most ease or who provides that additional added experience? That is, you know, absolutely fantastic. Um, and you know, as we look into, you know, how, um, how folks are engaging. Like, you know, it is there a future in which, you know, folks, you know, have some sort of representation on, you know, the Blockchain that’s like, you know, this certifies that, you know, you have donated to this organization or you know, you, you can unlock, you know, uh, different online, you know, possibilities, you know, through your donation that’s embedded on the Blockchain or opportunities like that. So, you know, I think that that’s kind of a possible feature that, you know, things can move in that direction as well.

[00:27:27.44] spk_1:
Jason, let’s make sure everybody understands the Blockchain. Uh, it took me a good amount of reading and many guests before you or well give myself a break a few guests before you. Maybe not many, uh, you understand what Blockchain is but it’s really it’s really something very simple once I once I once I understood it was simple but it took a little I’m trainable I guess I’m trainable. That that that’s the good news but uh you know so every every Cryptocurrency is on a Blockchain and you the book is a very good primer about all the, about the whole world of Cryptocurrency not just about Blockchain but I found your book to be a good primer use good analogies, I mean simple analogies that are easy to understand. So well let’s make sure everybody understands what a Blockchain is and and why each Cryptocurrency has its own Blockchain. Can you explain that Jason since you just mentioned Blockchain?

[00:29:06.64] spk_2:
Yeah yeah so so when we’re making a transaction you know there there is a record that has kept it and traditionally you know there may be like you know 11 record that is kept but what’s different about a Blockchain is that as a transaction happens on the network uh everyone who is participating in the network keeps a record of um of all the transactions that are happening. So you know the three of us right now that um you know uh tony Jason and that you know if I were to transfer Uh you know $5 you know worth of Bitcoin over to end That the record that has kept. You know imagine all three of us scribbling that because we we witnessed that happening. And so, you know, it’s between, you know, uh someone could claim it’s like, oh you didn’t actually give and you know $5 you gave her three and be like, no, no, wait a minute. Like you had seen that transaction, you had written it down. And so that is kind of a really basic explanation of, you know, what, how the Blockchain operates except instead of three people, imagine that with 30,000 people or more like, you know, just every single person who’s participating, the network keeps their own, you know, extremely detailed ledger of everything that is happening within the network and that that’s, you know, in part what keeps it secure that instead of trusting, you know, one single party that, you know, could, you know, alter, you know, those those records. It’s like you you have the collective that, you know, everyone sees everything that’s happening simultaneously in electronic format.

[00:29:45.94] spk_1:
And you to explain in the book why that’s enormously secure, secure from, from hacking from financial fraud and theft, uh, secure from mistakes. So, you know, listeners, you gotta get the book to get to go into the depth of the security of of the Blockchain. Um All right, so let’s let’s let’s start getting into the nitty gritty of of how to and can you start us off with, I think it’s important to explain what the keys are, the private key and a public key and then we’re going to get into how folks get their own are going to buy and maybe sell their own Cryptocurrency but you started off with the keys and.

[00:31:25.64] spk_0:
Yeah no problem. So if you think about your wallet um that you have in your purse or your back pocket and you store your cash in their Bitcoin uses something called the wallet as well. Um And it’s where you store your Bitcoin but it’s digital. Now if you think about your house, every house has a public address so 123 any street and you can give that address to anybody in the world they can send you a letter. They can you know show up and look in the windows but they can’t actually open the door to your house and take any of your stuff. And so your Bitcoin wallet also has a public address. And what you can do with that public address is give it to anyone that you know wants to send you money and they can send you money and it gets deposited into your wallet. But your wallet also has something called a private key and it’s kind of like the key to the front door of your house. And so if you give that key to anybody um they can open the front door of your house. They can come in and take all your furniture and all your electronics and whether they’re legally allowed to or not they can do it And the same sort of thing applies to your wallet’s private key if you give them that private key, anybody can then open up your wallet, take your Bitcoin and there’s really no recourse. And so, um, essentially what that means is you want to always keep your private key safe, always keep your private key backed up in a number of secure locations. Um, and what’s really nice about that is if you ever have any issues with your wallet, like let’s say you lose your phone or you know, something happens where the company making the wall, it goes under and you’re suddenly like, where’s my money? As long as you have your private key, you will always have access to your money. And so that’s what’s really amazing about it versus say if your bank went under, you might not have access to your money ever again. If Paypal froze your account, you wouldn’t be able to access your money with Bitcoin. As long as you have your private key, you always have access to your money.

[00:33:39.24] spk_1:
Okay. And again, as I said, the book, such simple analogies that the public key is like your address and the private key is like your house key very very, very comprehensible. It’s time for Tony’s take two veterans Day was last week and I was remiss in my show planning for last week’s show. So I don’t want to let it go. Unmentioned. I’m grateful. I’m thankful. I thank the many millions of people who have served our country in the military and also my gratitude to families who have lost folks because of their military service families that made that sacrifice and the military members themselves, that made those sacrifices. I’m thankful to those people as well. And if there’s someone in your family who died in the military, died supporting and defending our nation, I thank you. I had my own service. I was in the Air Force uh Military services is a calling and I I admire those who continue to answer that call. That call to to service duty to our country. Thank you. Thank you. Mhm. That is tony stick to Veterans Day. We’ve got boo koo but loads more time for Bitcoin and the future of fundraising and you know, you want to continue. It seems to me like the next step is, or the way you lay it out is the next step is getting a wallet.

[00:34:00.54] spk_0:
Yeah, so there’s lots of different ways to get a wallet. Um There’s most, the most easiest ways just get download a mobile wallet on your phone. Um There’s ones on the web as well and there’s a number of different companies out there now. Um

[00:34:01.66] spk_1:
and just explain what the wallet is for.

[00:35:27.24] spk_0:
Oh yeah, the wall is just restoring your Cryptocurrency, that’s it. So it’s kind of like the wallet you’ve got in your purse or in your back pocket. Um it’s just where you keep your crypto and it enables you to send it to other people. So if you have like Venmo or something like that, it feels a bit like Venmo um you just open it up and you can send your Bitcoin to someone else. The difference is there’s just no centralized company behind it, the way there is with Venmo or Paypal, um so you know, there’s a number of different wallet companies out there, some of them will enable you to hold on to your private key. Like Blockchain dot com is one example of a wallet that I use, that enables you to hold on to your private key. Many of you probably heard of coin base coin base is a little bit different because they actually hold on to your private keys. So it’s probably less secure from that perspective because it’s always good to have your key, but if you’re afraid of losing your key, coin base is probably a good option for you. Um So once you pick the wallet, you download it onto your phone um and then you can use an exchange to actually buy Cryptocurrency. So typically you would either connect your bank account or use a credit card um and just trade some of your usd or eur Canadian dollars for us northern folks and they’ll give you something corny return kind of the same way, like if you were going on vacation to Mexico, you would take your usd to an exchange booth at the airport and they would just trade you some usd for mexican pesos here. You’re going to get usd and get some Bitcoin back.

[00:35:34.14] spk_1:
So and if it’s a, if it’s a wallet like coin base, you said they hold your private key, you can also hold your private key. I mean like they can’t have it and you have it.

[00:36:17.53] spk_0:
No, because at the end of the day it’s like your house key. You know, if two people have a copy of the house key and all of a sudden the contents of the house are gone. Who stole them? You don’t know, you fundamentally need to have, you know, one person that, that’s responsible for the contents of the wallet and that’s either gonna be you as an individual or the company will take on that responsibility for you. Which has its pros and cons. Um, and so yeah, for a lot of people that’s, that’s a huge plus having someone else manage that responsibility for um, others in the crypto space. It’s really important for them to manage and own their own money.

[00:36:22.73] spk_1:
Can you name any other of the more popular wallets you mentioned Bitcoin dot com coin base

[00:36:29.96] spk_0:
coin bays bread wallet. Um, there’s electra. Um, there’s Jason. What other ones can you throw in there?

[00:36:37.93] spk_2:
I think that that, that covered off all the big ones, the

[00:36:47.23] spk_0:
metal pay exodus. Yeah, there’s, there’s a number a number of different options out there for folks to choose from these days, which is great.

[00:36:52.57] spk_1:
Okay. And it’s just a matter of googling right. What what are the top 10 wallets or what what’s a wallet for my, is it is it country specific? Do you need a wallet that works in your country, Jason?

[00:37:21.43] spk_2:
No, it’s uh it’s pretty cross border. So you know the song is that you can download it from uh you know, your respective app store and it works, you know, just uh you know, making sure that you’re finding a reputable wallet that you know has solid reviews and but you know, there’s uh no country specificity aside from, you know, uh if it is attached to a certain provider, a company that accepts a certain currency. So I know that there are some wallets um on the international side that are particular for um deposits, that you know, if uh if you want to deposit in a certain currency, then that may be the only kind of particular about it. But otherwise, you know, it’s pretty uh pretty universal.

[00:38:08.22] spk_1:
Okay? You make the security point in the book about not keeping your private key on your phone. But you both have mentioned the phone and using a phone app, but you’re supposed to just write your private key down and keep it somewhere secure. Like uh I get like a safe deposit box or something.

[00:38:44.82] spk_0:
Yeah, safe deposit box is a great spot safe in your house somewhere where you’re keeping really important documents. The way to think about it is you know that key will fundamentally open access to all the money in your wallet. So if you had $500 in cash where would you store that? Would you store it in your desk drawer? Would you store it in your bedside table? Probably not. You probably store it somewhere a little more secure. So based on how much money you have in your wallet, that’s sort of where you want to think about storing your private key if it’s 20 bucks, yeah, maybe put it in your desk if it’s $100,000 you definitely don’t want to leave that lying around.

[00:38:48.12] spk_1:
Um And Jason can you say a little more about exchanges?

[00:40:30.41] spk_2:
Yeah. So in terms of exchanges um you know we talked earlier about, you know while it’s exchanges are where the many of the transactions are around the world, you know take place. And really that it functions you know similar to regular kind of currency exchange or a stock market exchange where you know there’s it establishes a market where there you know those buyers and sellers and so you know um uh as I mentioned earlier, you know if you’re looking to exchange something like us dollars for you know. Bitcoin that um you know you’re you’re usually gonna be working with an exchange in order to uh to do that and on exchanges, you know, depending on on the exchange. You know, they may list a whole bunch of um different currencies, cryptocurrencies, you know, uh So you know, they may list in U. S. Dollars, you know, Canadian dollars, you know, Bitcoin ethereum, you know, if folks are looking at things like, you know, dodge coin um uh and it’s going quite quite extensive. I mean, you know, some of the larger ones are definitely, you know, listing uh many many different cryptocurrencies. Um but you know, if those who are looking for like, you know, the major ones that you don’t have emerged, you know, primarily, you know, Bitcoin in theory. I mean those are pretty standard almost across all exchanges these days. And uh they they the exchanges are really the mechanisms for which um you know, as a release back to two nonprofits that uh you know, after someone does make a donation of of Cryptocurrency um you know, having that exchange, you know, connection or um and some providers, you know, have that baked into their uh their services. That’s how you convert the Cryptocurrency back into, you know, a currency that the uh charity can use, you know, so if you s you know, how do you get that big pointed us dollars, you know, you’ll you’ll be working through an exchange in order to convert that so you can deposit into your bank account as well,

[00:41:05.61] spk_1:
Jason, let’s make something explicit because you know, when we’re recording Bitcoin a single Bitcoin is around $55,000 roughly a single ether is around $3500. Let’s make explicit that you don’t have to spend $55,000 if you want to participate in the in in buying some Bitcoin.

[00:41:08.31] spk_2:
No, absolutely not. So you know the uh it goes up to eight decimal places and I think that that’s something that is uh that’s helpful to to be aware of. So you know it is possible to buy like you know 0.00000 won worth of Bitcoin or ethereum. So um you know they’re uh definitely do not have to participate entire Bitcoin or entire. Either in order to participate in the in the ecosystem.

[00:42:15.20] spk_1:
Okay. And so you have in the title of your book you you you you you say Bitcoin but non profits could be accepting any of the any of the coins that you mentioned. But does it become so when you when you stray from Bitcoin and ether which are the two most popular, are you are you taking a greater risk if you get into like stellar and you mentioned dodge coin and by finance does it become riskier for for you personally if you’re doing your your experimental purchase and your credibility building purchases or or for your non profit if you’re accepting those other less popular like all the old coins.

[00:44:43.99] spk_2:
Mm it’s similar to I would say like you know in kind donations or stock donations that charities would ordinarily receive. And so you know, I think that when considering Cryptocurrency donations, like the vast majority of them are being transacted in Bitcoin followed by either in that order. However, when looking at all the coins, you know, what’s worth kind of thinking about is you know, imagine a prospective donor who you know may have, you know, picked up Dodge coin when it was valued at 0.0001, you know, sense and held onto it. And you know, now I think the last I checked it was like 26/27. And so you know what with regards to risk, I think it’s more helpful to assess like, you know what what’s the conversation that’s being had. You know, is someone approaching your organization with, you know, uh a donation was like, hey I like to contribute, you know, 100 $100,000 worth of dodge coin. You know, generally speaking, I would hope that, you know, a charity that is approached with that kind of um offer. You know, it’s okay, let’s, you know, let’s find an exchange that that will, you know, help us convert, you know that that amount of dodge coin, you know, into uh into U. S. Dollars to allow us to to accept it. And and so um, you know, I think it really depends on the audience. Um and so you know I think that’s what drove some of the early adoption where, you know, as Bitcoin started, you know, rising in price, you know, more offers of donations were emerging and you know, I think that you will see, um, you know, similarly with the old coins that are out there that, you know, definitely for folks who have gotten in early on some of the old coins and you know, um, it, I think it still remains to be seen which ones will, will take off. You know, we’ve already seen, you know, the emergency, you know, Bitcoin and ether. But you know, five years from now. You know, who, who knows, you know what, maybe up there. And so, um, what I have observed is that many of the exchanges are responding accordingly as well. So as as a, uh, all coins or other cryptocurrencies are taking off. You know, they get added to exchanges, which does make it easier and simpler for, um, for organizations to uh, to exchange and transact in that. So, um, you know, there, there have, there have been instances actually of folks donating, uh, you know, all queens, I think dodge coin, you know, definitely has a lot of fun stories about how, uh, how supporters have, uh, have donated their, um, their, their rapidly rising uh, currency.

[00:45:49.99] spk_1:
Yeah. Because you know, like you’re saying dodge coin, someone could have bought it for uh, tens of thousands of a penny. And at one point, I think it went up to like 60 cents or 65 cents in value. So if someone had spent like $100 or even a foul, all the more of 200 or 500 or $1000 buying millions of shares and then the price went up to 60 cents. You know, they’ve got, they’ve got a lot of money in dodge coin all of a sudden and if they then converted it to dollars Canadian or us, uh, they’ve got a lot of money potentially to give. And, and the, the book points out a lot of folks who are very, very generous with their, with their Cryptocurrency windfalls,

[00:46:34.98] spk_0:
Jason correct me if I’m getting the numbers wrong, but if something approximately where if you had, you know, invested $100 in ether at its launch, you’d have over a million dollars today for $2 million dollars today. Like it didn’t take a lot at the beginning. If you were really passionate about this project, you put a little bit of money in um, to suddenly have this astronomical wealth that would be almost impossible to generate in any other way in our society. And so it’s, it’s really what you end up getting is fairly ordinary people, you know, that came from ordinary means that that now have this wealth that, you know, they’re not interested in buying gold plated sneakers, you know, they want to create change and that’s where the nonprofit sector can really help them do that.

[00:47:23.18] spk_1:
And let’s stay with you and move to the organizational level Now. Let’s talk something about getting, getting buy in uh, in the book. You make the point that you’re not even sure the board should be approving this, they shouldn’t be involved. It’s more like, should we start accepting credit cards? You know? Uh, so it’s more um, asking for support rather than permission. But let’s talk about, you know, Ceo by in or maybe vice president of development by in uh, what are some of the reasons you might you as a crypto advocate in your organization? Might might start putting forward for why your organization should get into this. So

[00:49:16.07] spk_0:
the reason that I used when I was convincing my Ceo back in 2014 was I said, look, you know, it’s really what we can do is accept it, we can sell it immediately. There’s no fluctuation, there’s no currency risk, anything like that. And fundamentally that’s no different than accepting a stock. Like we already accept stocks and other securities. So if we do exactly the same treatment as we do with stocks, there’s really no risk to the organization and I think this day and age, there’s no brand risk, there’s, there’s no another stigma that used to exist around Bitcoin is really not there anymore. We’re seeing it adopted by not only charities, but major organizations and companies Microsoft, IBM, all kinds of different companies are heavily involved in cryptocurrencies. So I think that’s, that’s the key one is saying, okay, we already do this with another volatile asset on the stock market. Here’s another opportunity where we can essentially bring in A whole new set of young donors. And I think that’s probably my favorite argument for Cryptocurrency is most of the donors and most of that community are between the ages of 24 and 40. Um, and so if you’re really looking to bring on a whole new set of the younger generation of donors, this is a great way to do it. And you won’t be cannibalizing any of your other activities. You’ll have this whole new set of donors with no risk. Um, and for any organization that fundamentally says, hey, we want to be innovative. We want to be new here is a great way that you can do that. That is not only exciting and innovative, but it’s also a revenue driver. And so it’s pretty hard to say no to something where you say, okay, you know, we’re gonna, we’re gonna give this a try. It’s going to cost us essentially nothing to set up. We can set it up over the course of the week. There’s no risk and it might make us some money and bring in new donors to me. That’s an absolute hell, yes.

[00:49:56.87] spk_1:
Okay. There was like four or 5 very good reasons why, you know innovate, prepare for the future, expose yourself to do constituents. Uh, it’s becoming mainstream. There’s no stigma. Um, and and help you raise more money just in a different format. Um, let’s just make explicit. And is it is it your your recommendation that non profits would sell their their Cryptocurrency right away as you would with stock or what, what is your recommendation for? What to do with a crypto currency gift once you have received it,

[00:51:17.86] spk_0:
I wouldn’t recommend it. But that’s my risk tolerance. And so what’s really most important is to look at, like, what is the risk tolerance of your organization? You know, And I think, um, every organization should really sit down and say, okay, how much cash do we have on the balance sheet? You know, how much money do we have every year to play with? And what percentage of that Are we willing to put in a high risk investment? So maybe we decide that as an organization, we want 99% of our money that we raised to be there at the end of the year, and that’s totally fine. Um, but take that 1% and hold it in a Cryptocurrency and see what happens. Um, and say, look, this is a microscopic risk that we’re going to take for the potential upside of making a lot of money. Um, or maybe your organization might be a little more risk friendly. You say, look, we’re gonna we’re gonna have safe, secure investments or just keep our money in cash for 75% of what we bring in 10% we’re going to put in, you know, uh index funds with the stock market and the rest, we’re going to put in Cryptocurrency something a little bit higher risk, like I think really at the end of the day it’s not so much, you know, should you sell it or not, it’s how much of your portfolio are you putting in high risk versus low risk assets? And I think the thing to keep in mind this day and age is with inflation, where it is putting your money in cash is not safe, You’re losing money every year by holding that money in cash. So if you’re trying to maintain the amount of money that you have by the end of the year, you need to be doing something with it. So is that something high risk, low risk, what percentage is it? Um That’s up to the organization to decide. But I would really recommend that every organization actually take a critical look at what they’re doing with their money um and reserve at least a tiny portion of that to take a look at holding cryptocurrencies for the longer term.

[00:51:49.66] spk_1:
And the reason you say you’re losing money if you’re holding cash is because of inflation.

[00:51:53.89] spk_0:
Absolutely, yeah,

[00:51:55.76] spk_1:
Jason anything you want to add to the organizational policy.

[00:52:00.85] spk_2:
Yeah, I think from just looking over a trend lines, you know to the point that that and made about risk, it’s you know really aligning overall organizational strategy with what organizations looking to achieve and how you know their asset holdings maybe um may reflect that and that their risk tolerance and I think when looking at trends like it was as early as I believe it was 2014 at the time that Canada was looking at digital currency programs and you know, although that program at the time that it was called the mentorship program, you know didn’t proceed, you know uh

[00:52:32.83] spk_1:
I’m sorry Jason who would you say was looking

[00:53:11.45] spk_2:
at? I’m sorry the Canadian government or the Bank of Canada was looking at a program called the uh the mint chip program and that was really a Canadian digital currency that was being explored. But now there’s been a resurgence I think just in the past week, you know the G seven group of nations you know agreed upon, you know a set of standards to examine, you know digital currency. So I think when looking at, you know overall trends, you know digital currencies and cryptocurrencies are not if but it’s a when and you know for organizations are preparing for the future, strategically it’s it’s really you know do are by by participating in the ecosystems. Now you’re especially future proofing organization for that future which is going to come of, you know as governments are seriously looking at digital currencies that the same principles that govern you know, how do you treat you know, cryptocurrencies that this is all going in the digital direction and you know that much is evident. And so, um, it’s more of a timing consideration now. It’s, you know, would you like to do it now or later? It’s

[00:54:24.84] spk_1:
coming right. It’s it’s not, it’s not if, but when I think that’s a terrific place to wrap up. You know, there’s, there’s a lot more in the book. There are checklists for how you set this up at your organization. But I wanted to focus on the basics a person venturing into this because with the statistics that that I mentioned, so there’s still 87% of Americans are not involved in crypto and still 70% of Canadians are not involved in crypto. So I want to, I want to overcome that and then move to the organization level. And as I said, the book is a very good primer, lots of easy to understand analogies. The book is Bitcoin and the future of fundraising. A beginner’s guide to Cryptocurrency donations. The co authors are an Connolly at an underscore Connolly and Jason shim at Jason Shim and Jason, thank you very, very much.

[00:54:32.94] spk_0:
Thank you so much, appreciate it.

[00:54:34.68] spk_2:
Thanks tony

[00:55:08.54] spk_1:
pleasure thank you for sharing and and doing it in a simple way next week. Mission uncomfortable. That’s a working title with stew Swinford, that’s not a working name. He’ll he’ll stick if you missed any part of this week’s show, I Beseech You find it at tony-martignetti dot com. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. Our creative producer is Claire Meyerhoff

[00:55:10.73] spk_2:
shows. Social media is by Susan Chavez. Marc Silverman

[00:55:14.50] spk_1:
is our web guy

[00:55:15.65] spk_2:
and this music is by scott. Stein.

[00:55:30.94] spk_1:
Thank you for that. Affirmation. Scotty You with me next week for nonprofit radio Big nonprofit ideas for the other 95%. Go out and be great.

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