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

 

Esther Choy: Your Partnerships With FGWs

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

 

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 Outdated donation forms blocking your supporter generosity.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

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

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Anne Connelly & Jason Shim: Bitcoin & The Future Of Fundraising

 

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.

Nonprofit Radio for August 30, 2021: Decolonizing Wealth

My Guest:

Edgar Villanueva: Decolonizing Wealth

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

 

 

 

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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.

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[00:02:21.14] spk_1:
Yeah. Hello and welcome to Tony-Martignetti non profit radio big non profit 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 be hit with hyper guard Dallas the asia Footnote one If you tickled me with the idea that you missed this week’s show de colonizing wealth. Edgar Villanueva’s book de colonizing wealth takes an innovative look at the purpose of wealth. His thesis is that the solutions to the damage and trauma caused by american capitalism, including philanthropy can be gleaned from the values and wisdom of our nation’s original people. He’s a native american working in philanthropy, This originally aired 30 November 2018 Antonis take two gratitude all day. We’re sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot c o. And by sending blue the only all in one digital marketing platform, empowering non profits to grow tony-dot-M.A.-slash-Pursuant in blue. Let us begin here is de colonizing wealth. It’s my great pleasure to welcome to the studio Edgar Villanueva, He’s a nationally recognized expert on social justice philanthropy. He chairs the board of native americans in philanthropy and is a board member of the Andrews Family Fund, Working to improve outcomes for vulnerable youth. He’s an instructor with the grantmaking school at Grand Valley State University and serves as vice president of programs and advocacy at the shot Foundation for Public Education. He’s held leadership roles at Kate b Reynolds charitable trust in north Carolina and marguerite Casey Foundation in Seattle, Edgar is an enrolled member of the lumbee tribe of north Carolina. You’ll find him at de colonizing wealth dot com and at Villanueva Edgar, you’re welcome to studio.

[00:02:22.29] spk_0:
Thank you. tony Pleasure to be here.

[00:02:23.87] spk_1:
Congratulations on the book. Thank you. Which just came out last month was october

[00:02:28.33] spk_0:
october 16th.

[00:02:29.31] spk_1:
Yes. Alright. And you just had a very nice interview with the new york times?

[00:02:33.16] spk_0:
Yes,

[00:02:34.14] spk_1:
congratulations on that. They perhaps perhaps perhaps you for nonprofit radio

[00:02:37.66] spk_0:
Right, right. I’m ready. All

[00:03:25.24] spk_1:
your, all your media appearances to date have brought you to this moment. Right. So it’s all culminated here. Um, I promised listeners, footnote one, footnote 12. hyper guard Alice these asia. Uh, of course, anybody listens to the show knows that I open with something funny like that. A disease. Every single show. Uh but in Edgar’s book, he mentions hyper guard anesthesia. So this is the first time Over 400 shows that the, that the guest unknowingly has uh, provided the opening disease state. So thank you very much. You didn’t know what we do that every single show. Um you didn’t know that you’re not listening to nonprofit radio It’s it’s your life. All right. Um, okay. De colonizing wealth. Uh, you’re you’re, you’re a bit of a troublemaker

[00:03:30.54] spk_0:
a little bit.

[00:03:33.34] spk_1:
Yeah. You’re raising some eyebrows. Uh,

[00:03:33.76] spk_0:
someone told me yesterday that I was the Colin Kaepernick of philanthropy, which I was like, I haven’t thought about it that way, but

[00:04:04.94] spk_1:
that’s not also bad. Get a little closer to the mic so people can hear you. Yeah, just get not almost intimate with it almost. Um, I used to call myself the charlie Rose of charities until he blew that gig for me. You know, he ruined that. Uh, can’t use that any longer. Um, because you talk about uh, colonizer virus and exploitation and division. Um, like these are bad things.

[00:04:06.84] spk_0:
Yes, they are bad thing. What

[00:04:09.48] spk_1:
uh, what is the, what’s the colonizer virus? Why do we need to de colonize

[00:04:46.74] spk_0:
so many of us who work in philanthropy or even the non profit sector, um, you know, have this firewall that we are completely disconnected from, um, Wall Street or from capitalism or, or some of those uh, processes and systems in our country that may have a negative connotation for the good doers. But in philanthropy, we are not very far, you know, disconnected from uh, corporate America. Most of this wealth was made by corporations and businesses, um, sometimes, uh, not in the best ways, not in the

[00:04:50.24] spk_1:
backs of a lot of indigenous and colored people.

[00:05:10.14] spk_0:
Yeah. When you look at the history of the accumulation of wealth in this country is steeped in trauma. Right? And so legacy wealth that has been inherited for generations. Now, folks may not even know the origin of their family’s wealth, but you know, when we look back and we see in general how wealth was accumulated. Um, you know, especially I’m from the south north Carolina, we’ll talk about that. Um, there absolutely was the legacy of slavery and stolen lands that, that help contribute to the massive wealth.

[00:05:23.04] spk_1:
And you feel there are a lot of lessons we can learn from the values of native americans.

[00:06:09.24] spk_0:
Yeah. So you know, we as a, people talk about healing a lot. We have a lot of trauma that exists in our communities. Um, you know, because colonization as we often think about it as something that happened five years ago in north Carolina, especially where I’m from, we were the first point of contact, but colonization and the, the acts of separation and exploitation are still continuing present day. And so in my community, native communities across the country, even as recent as my grandparents generation kids were forcibly removed from their homes and put into boarding schools. And so we’re still, we’re experiencing a lot of trauma as a result of these practices, but we are a resilient people and those who are closest to a lot of the problems that we are trying to solve today as a society, have a lot of answers and wisdom that we can bring to the table.

[00:06:22.24] spk_1:
You say that the natives are

[00:06:23.73] spk_0:
the original philanthropists.

[00:06:44.94] spk_1:
Um, now you’re a member of the lumbee tribe of north Carolina. Uh, Robinson county north Carolina, which, which is not too far from where I own. I own a home in Pinehurst, which is a little north and west I think of, of Robinson County lumber. So the lumbee tribe, I assume the lumber river is named for the lum bees and Lumberton. The town

[00:06:49.90] spk_0:
named for lambis. Right? So love bees were actually named after the lumber river after river came first. Yeah, the river came first and so certainly the river came from

[00:07:00.26] spk_1:
the name of the river

[00:07:10.04] spk_0:
came from rivers been there much longer than, Yeah. So we are, you know, a hodgepodge of historical tribes that were in coastal north Carolina. Um, that I came together to form the lumbee tribe and named ourselves after that river.

[00:07:40.94] spk_1:
Um, and we’re gonna come back to uh, native americans as the, as the original philanthropists. But uh, that, that struck me a lot. I think you, you say, you say that the end of the, at the end of the book is where I, where I caught it. Um, uh, we just have like a minute and a half or so before the break. So just we’re introducing this, we’ve got plenty of time together, wealth. You say divides us, controls us, exploits us. What’s that about?

[00:08:01.84] spk_0:
So the accumulation of wealth. So money in itself is neutral wealth in itself, I say is, is neutral, but it’s the way that wealth has been accumulated in this country that has caused harm when we value when we, you know, fear and were motivated by greed. Um, the acts that can result as a, as a result of that to exploit the land and to exploit people or what that’s what has caused the harm in itself. So, um, the case that I’m going to make in this book that I’m making in this book is that wealth and money can actually be used for the good. If it historically has been used as a negative thing that has caused trauma, we can flip that to use it for something that can actually help repair the harm that has been done. You’ve got seven,

[00:09:10.04] spk_1:
6, 6 steps to that second half of your book. It’s time for a break. Turn to communications. They’ll help you find your voice and get that voice heard in the right places. Places like the Wall Street Journal, the new york Times, the Chronicle of philanthropy, fast Company Market Watch and lots of others you’ve heard me name. They’ll help you find your voice and get it out. Turn to communications, your story is their mission turn hyphen two dot c o. Now back to de colonizing wealth. *** tony-martignetti Uh, that is your indian name. Did I by any chance say that correctly.

[00:09:13.13] spk_0:
I think that’s correct. I’m a little shabby with my Ojibwe these days. You

[00:09:17.72] spk_1:
don’t know your, you know,

[00:09:18.75] spk_0:
you know that sounds, but

[00:09:25.84] spk_1:
that is your indian name. Uh, leading bird, uh, tell the story of how you got that name. Well, welcome back to don’t welcome back to the exploitation and control, don’t we? Yeah, this is a good story, how you got that name.

[00:11:55.54] spk_0:
So my tribe, the lumbee tribe in north Carolina doesn’t have a tradition of naming you are, whatever your mom calls you, that’s your name. Right. Right. So, um, but when I, when I was working in north Carolina and native communities, I went to a conference where there is a medicine man and some, when the medicine man was meeting with folks who wanted time with with him to, to talk or have a session and growing up in north Carolina, my identity as a native has always been quite complicated. We didn’t have these types of practices in my home in Raleigh north Carolina. And so, but I was very curious to meet with this medicine man and to um see what could happen from that encounter. And someone told me if you’re, if you’re really lucky when you meet with the medicine man, they might give you a spiritual name or a native name. Um, and so I met with this guy in the Marriott hotel in denver colorado or this, this native health conference. So it was all uh, tell the story in the book is quite um hilarious and in many ways, but at the end of our session where I was feeling um excited about, you know, the conversation we had but also a little confused and skeptical in some ways because I’ve, you know, had such a colonized ways of thinking. Um he did offer me a native name, Naghani pinochet, which means leading bird. Um, so I was very honored and my first thought was, what kind of bird? Right am I a little tweety bird or am I mighty eagle birds are best? So um he explained to me that I was the type of bird that flies in a V. Formation. Um, and as I when I left I studied these birds and and they’re the leading bird. I’m the leading birds leading bird. I’m the bird that flies in the front of the V. Formation, which is the kind of leader that is often visible but really understand its co dependence and interdependence on the other birds. And so if you watch birds flying in a V. Formation, it’s really like an amazing natural national phenomenon, how how they communicate and fly together. Uh the other thing that’s remarkable about the leading birds type of leadership is that it often will fly to the back of the pack and push another bird forward. So it’s not always the one that’s out front. And um when I, when I learned these characteristics, um I just felt really, um I was really, really happy and content about this name because I do see that’s the type of leadership that I model in my everyday life and I think it’s the type of leadership that’s really important for the nonprofit sector.

[00:12:32.04] spk_1:
You explain how the birds communicate, which I’ve always wondered, uh, they’re, they’re just close enough that they can feel vibrations off each other and micro movements. I think you say off each other, but they’re not so close that they’re gonna bump into each other and, and you know, be injured. But that’s how they, and I guess they’re feeling the breeze off each other and sensing these micro movements of each other. So they’re that close but not so close. They’re gonna be injured, right?

[00:13:00.84] spk_0:
It’s very, it’s very fascinating. It’s like a scientific, uh, you know, gPS built into their bodies. And the other thing I recently heard about these birds, um, is that you don’t ever find one that dies alone. And so, you know, I want to learn research that a little bit more. But I think when they’re when someone is down or you know, there’s an injury or whatever may happen. Uh, they, there’s there’s a certain way that they take care of each other. And so um, you know, it just kind of speaks to our common humanity and are interrelated, you know, being interrelated and

[00:13:21.14] spk_1:
exactly our interdependence. Now this is a, this is an indigenous belief that we are all related and that’s what it makes me think of. The birds also absolutely working so closely together that they feel micro movements. But how explain this this belief that we are, each of one of us related to the, to all the other.

[00:14:34.54] spk_0:
Yeah. So there there is a native belief um all my relations that means um you’re, all of our suffering is mutual, all of our thriving is mutual and uh you know we are, we are interdependent and so it’s a very different mindset or worldview from sort of the american individualistic type of mindset. Um we also have connected to that viewpoint is this idea of seven generations. So not only are we all related, you know, in this room right now and that we’re relatives um and we are related to the land and to the animals around us, but all of the things, all of the decisions and um that we are making today are going to impact future generations. So there’s an idea that I am someone’s ancestor and so what our responsibility to move through the world in a way that is thinking that far forward about our um our young people. And so these are concepts that were taught to me by my family, but also in recent years this book gave me the opportunity to revisit and spend time with indigenous elders to remember these teachings and and to think about how to apply them in my work

[00:14:54.74] spk_1:
and you encourage us to each that each one of us takes responsibility for as you said, were thriving and suffering together. Um what I’m referring to is the each of us takes responsibility for the colonizer virus. Say more about that.

[00:14:55.96] spk_0:
Yeah, so you know, I think are we all responsible?

[00:14:58.94] spk_1:
We’re all

[00:15:11.24] spk_0:
responsible because we’re all affected. Um, I think some folks, when we, you know, we learn about colonization in schools is something that seems pretty normal, right? We um, we think of colonization and the colonizers as heroes like the natural path of progress. Absolutely

[00:15:17.37] spk_1:
way it’s learned,

[00:16:11.34] spk_0:
right? We have holidays, you know, for for Christopher columbus for example. And so but the realities are that colonization um, was something that was terrible that resulted in genocide and all types of exploitation. And uh, that type of history that we have in this country is something that we um, as as the people have not come to terms with, we actually we don’t tell the truth, we don’t face the truth. And so I think we’re still dealing with the consequences. Um, and so the dynamics of colonization which are uh, to divide to control, to exploit, to separate those dynamics. Um, you know, I I refer to them as the colonizing virus, because they they are still in our bodies as as a nation. They show up in our policies, our systems reflect the colonizer virus and in our institutions in the nonprofit sector, and especially in philanthropy, where we are sitting on lots of money, privilege and power.

[00:16:20.24] spk_1:
Uh, these

[00:17:25.54] spk_0:
naturally to your point about us, them organizations go ahead. So, you know, I think the philanthropy, for example, can perpetuate, um, you know, the dynamics of colonization because when you look at um uh where this where this money came from and how we as a sector don’t face the realities of that truth. When you look at ask the question of why this money was held back from public coffers, um that, you know, had it gone into the tax system, it would be supporting the safety net and vulnerable communities. Um And when you look at who gets to allocate, manage and spend it, you see a very um white dominant kind of mindset happening because for example, if we get into the numbers just a little bit um foundation set on $800 billion of assets. That’s a lot of money that has been uh you know, sheltered from taxation. That’s money that would have gone into public education, health care, elder care, um things that we need for the infrastructure of our communities, but that money has been put there with little to no accountability. Um Private foundations are only required by the I. R. S. To uh pay out 5% of their assets. And so then, you know, you’re looking at just a small percentage of money that was intended to be for the public good. Only a small percentage is actually leaving the doors being invested in community. Let’s assume

[00:18:11.04] spk_1:
it’s uh I know there are a lot of Foundations that use that five minimum as their maximum. So that’s so 5% of that would be $40 billion. Uh So the counter is, but there’s $40 billion coming Each year. Could be more, but let’s take the minimum just to be conservative. And you know, we’re trying to preserve this uh this foundation capital for perpetuity. So if, you know, if we if we spent in the next two years, the 800 billion, then we wouldn’t have anything left for future, just future years and other generations were trying to, you know, we want to be around for in perpetuity. The foundations would say,

[00:19:26.24] spk_0:
right, right. And you know, I think I think there is a case to be made for saving some funds for a rainy day in the future. But the truth is that 5%, when Congress had acted that 5% role, Um it actually began at 6%, I believe in 1974. And then in 1976 was lowered to 5%. The reason that Congress had to actually put this legislation forward is because foundations were not paying out any money. And so when you think about the intent of foundations, are they being started to actually benefit the public? Are are wealthy wealthy 1% or whoever corporations starting these foundations just for the sake of having A tax break. And so that that uh IRS minimum payout of 5%. That rule was put in place to force um foundations to actually begin making grants. And so, you know, so it is sort of the other thing to explore if you are with a 95%, that is not leaving the doors. Um, if the intention is really to do good in communities, we have to look at how that 95% is then being invested too, generate more money for future grantmaking And the truth there is that the majority of those funds are tied up and harmful and extract extractive industries, um, that are counterintuitive to the mission of foundation. You make the point

[00:20:20.74] spk_1:
often uh, that often right, Those investments are in our industries that are hurting the very populations that the foundation is explicitly trying to help through its, through its mission. And, and in fact funding um, the uh, something else that was going to ask about the, the way the money is. Um, All right, we’ll come back to it if I think of it. Um, there’s there’s a lot that organizations can gain by hiring people of color indigenous people. What uh, and and very few. You’re, you’re a rare exception. Um, working in, in found doing foundation work. Uh, what’s the, make explicit those uh, those advantages?

[00:20:49.64] spk_0:
Sure. So you’re right. I’m absolutely um an exception. I think when I started in philanthropy, I was one of 10 native Americans that I could find, we kind of found each other. What year was that? Uh, this was in 2005 And we are now, there’s about 25 of us now, the last time I counted. Um, so yeah, there’s, there’s, you know, an amazing opportunity for foundations and I think more and more foundations are understanding to bring folks in uh, 22 foundations that have lived experience

[00:21:12.64] spk_1:
and not only foundations but nonprofits and Ngos doing the groundwork. Absolutely foundations of the funders. And of course some foundations are now actually doing their own groundwork. We’re seeing that emerging, but, but for the nonprofits doing the day to day work

[00:21:15.21] spk_0:
as well

[00:21:16.01] spk_1:
represent the communities that you’re

[00:22:06.94] spk_0:
absolutely, it kind of makes sense, right? And uh, you know, it’s funny because some foundations actually require that of non profits. They ask about the diversity of their staff and their board, but they themselves have no type of, you know, values around diversity of their staff. But you’re, you know, the point is that for sure that any non profit or foundation to, to have folks uh, that that work there who have authentic accountability to community and understand and have been impacted by the issues that you’re trying to solve is going to bring an awareness and um, you know about the problem in a different way. It’s going to create some proximity that I think is gonna just inform strategies. That that makes sense. And I can’t tell you the number of times I’ve been in strategic planning processes and board meetings where decisions were being made and I always carry my mother, my family with me, you know, in spirit, into the room and I hear these decisions are these conversations and I’m thinking like, oh my God, like you know this, you know, this this would not in any way help my mother or my family that still living in poverty. Decision makers disconnected, there’s such a disconnect.

[00:23:12.94] spk_1:
Yeah, um and I I thought of what I was going to ask you about or just comment on the Foundation wise, we do see some Foundation saying that they’re going to spend down their assets. Uh I wouldn’t say it’s a needle moving, but you do hear that from time to time, that there’s a foundation that’s committed now to spending its its assets down, you know, uh was paul Allen, was that uh not paul Allen the Microsoft? I think the Microsoft founder, co founder who recently died, I think his foundation was paul Allen Okay, okay. Uh I was thinking of steve Allen comedy all comic, that’s why I thought, no, it wasn’t him, but it was paul Allen, I think his foundation is one, but there are some, so we do hear some glimmers, but you say in the book a few times people we need to move the needle.

[00:24:15.24] spk_0:
Yeah, I think, I mean, I think deciding to spin down is a very progressive way of thinking about it. There’s so much need now um if we actually release the funds or even if you don’t want to spend down, you can make a decision to pay out more. Um there there’s a lot of amazing work happening um right now that is so under resource that if we could um support and get behind investing money in these various movements and these uh in communities of color which are so marginalized by philanthropy, you know, uh the 5% that is being invested, only 7 to 8% of those dollars are being invested in communities of color. That would make a big difference. And so I think um you know, I think it’s a conversation that the boards of Foundation should think about, what is the value of, you know, why why do we want to stay in perpetuity? Like what is that about a family legacy? Is that really about making a difference in the world? Because in some ways it feels I can see that has been a very selfish type of uh you know, uh way of thinking,

[00:24:33.24] spk_1:
if this was CNN right now, I would I would play a video of you, but I don’t I don’t have that. But in your in your times, uh we have to work on that at talking alternative, we need we need video capture and screens and everything. Uh in your video, in your interview with David Bernstein new York times, uh you said by not investing more in communities of color philanthropy? Venture capital, impact investing in finance are missing out on rich opportunities to learn about solutions.

[00:25:52.34] spk_0:
Yeah. You know, I think that I think of, you know, people of color indigenous folks as being the canaries in the coal mine sometimes when, when policies fail or systems fail, um, we hurt the hardest and uh, but there’s just something so magical about and sense of pride that I have about my community because we are so resilient regardless of um, you know, all of the trauma, the colonization, the um, you know, genocide stolen land, we still remain intact as a people. Um, and so there’s, there’s gotta be something magical about that resilience that I would, if I weren’t native, I would be interested to know like what, when you think about sustainability, you know, we have a corner on sustainability. Um, indigenous peoples around the world are on the frontlines of saving this planet on, you know, um, you know, really fighting for environmental protections. Um, there, there’s so much wisdom and you know, often foundations roll out new theories of changes are changes are see strategies or there’s a new model or theory theory of change that comes up and I’m like, wow, we’ve been doing that in our communities for years. If someone would have asked us, you know, maybe we can get there faster.

[00:26:00.64] spk_1:
Is there still a lumbee community in Robinson robeson county?

[00:26:04.27] spk_0:
Yes, there are, there are about 60,000 enrolled members in the lumbee tribe. The bulk of our community is still in Robertson County

[00:26:12.59] spk_1:
now have a north Carolina driver’s license. Will that, will that get me in? Can I be a member?

[00:26:17.86] spk_0:
You know, we were very inclusive. We, we, we’ll take, we’ll adopt you as an honorary brother, but you have to have a little bit more documentation to get officially enrolled. So it’s, it’s a stretch for an italian american with north Carolina license

[00:27:18.24] spk_1:
player and, uh, driver’s license. All right. Um, you, you talk about, you know, I guess, I mean, we’re skirting around these things, Make it explicit the power imbalance, you know, that, um, minorities are seeking it. And uh, mostly middle aged white guys are, are doling it out. Uh, you know, piecemeal, um, the, the imbalance, you know, the grant, even the, even the word, you know, the granting, it’s like some, uh, I don’t know, it’s like some holy orders has, has bestowed upon you something that’s a gift when, uh, your, your belief is that your thesis in the book is that it’s, it’s a, it’s a right equally held by all,

[00:27:46.44] spk_0:
yeah. You know, I think power and money, A lot of, a lot of this does come down to power and ownership. Um, we are talking in the nonprofit sector right now, a lot about equity, right? And equity is very different from diversity and inclusion. Um, to me, equity really is all about shifting power. And we often think about that from the lens of equality. So we’re going to have the same power, which is a good thing. But to really achieve equity, it’s gonna actually require that some folks who have had power for a long amount of time give up more power to take a

[00:27:54.36] spk_1:
back seat. So that’s not gonna happen. You know, that’s, that’s highly unlikely. Like infant is really small, unlikely.

[00:28:27.24] spk_0:
You know, it’s, it’s a hard thing for people to, uh, to think about. And especially if you have, if you’ve been privileged for so long, um, equity might actually feel like oppression for you, right? Because it’s like, you know, well, I, I, I have less than I’ve had. So, um, but you know, we, I want to think about this through an abundance of my frame. There’s enough, there’s enough resources, enough power to go around. Um, we just have to work together to make sure that we are privileging those who have not been privileged by that problem.

[00:32:43.94] spk_1:
So I love that you, you approach it from a position of abundance and not, not scarcity. It’s time for Tony’s take to gratitude all day. This is coming up just next week. So this is something for folks that are listening to the show very quickly after it’s published. No, wait, what am I saying next week? Yeah, it’s this week. It’s this week september 1st and second. It’s gratitude all day, september 1st and second Wednesday and thursday, it’s online, It’s a live stream, you join and share with the world your gratitude. What are you grateful for health, your family, friends, good drinks, prosperity, uh safety. Uh you know, I’m thinking things that well, I don’t want to share my gratitude, I’m doing that, you’ll, you’ll hear what I’m doing mine, I can’t give you mine now, I can’t do that now. So I’m trying to think of what your gratitude might be. Uh wonderful vacation blossoming flowers over the summer. Uh you got approved for your life insurance policy, you bought your new home, you sold your old home, your kids are starting college, your kids are leaving college, whatever you’re grateful for you get the idea, you join the live stream on Wednesday and thursday the 1st and 2nd and you share it with the world whatever you’re grateful for now, The best time to do this is 7-9 eastern on Wednesday september 1st because that’s the part that I’ll be hosting. See, there are different hosts throughout hosts throughout the 24 hours and I’m the hostess for 7 to 9 p.m. Eastern Wednesday night. The whole thing runs from one p.m. On Wednesday to one pm Thursday. So the best time to share your slot, share your gratitude is my slot because that’s you know, you don’t want to take a chance with with a lackluster host when you can have a lackluster host of your segment. So 79 p. M. That’s, that’s the best time to share your gratitude, although you certainly can do it anytime during the 24 hours. And where do you get all the info for gratitude all day. It’s very simple. You go to gratitude rising dot org Now if you can’t join us because you didn’t listen to the podcast the day or the day after it was published, then just do your own gratitude. You don’t have to share it with the world. Do you? Do you do daily gratitude? You know what that is in the morning when you wake up, you you just, you’re beyond the twilight zone, but you haven’t gotten out of bed yet. A couple of minutes devoted to daily gratitude. Now I don’t do it daily, but I do it often verbalizing, saying them out loud, verbalizing the things that you are grateful for, think through and go into depth about the things I’m grateful for just talking to myself, but saying them out loud. So if you can’t join us for gratitude all day, do your own day gratitude and hopefully daily gratitude that way. But I love the idea of just gratitude, giving thanks and sharing it if you can. But even even saying it out loud is, you know, sharing it with yourself. It makes a difference saying it out loud versus just thinking about it. It does, That’s gratitude and that is Tony’s take two. Now back to de colonizing wealth. Now I want to go back to Edgar Villanueva. Edgar. Villanueva. See, I thought he would pronounce his name. Edgar And I was wrong. And but that’s that’s why I said Edgar. But it’s Edgar. Edgar. A gravel in river. And de colonizing wealth. Welcome back. You didn’t go far.

[00:32:45.10] spk_0:
Thanks for having me. Okay. I’ll still be here. Yes, absolutely.

[00:33:06.44] spk_1:
You haven’t done anything that would lead me to shut your mic off. Um It hasn’t happened, I’ve threatened, but it hasn’t happened. So let’s, let’s start getting uh positive. You know, the second, roughly the second half of your book is seven steps to healing. Um, And uh, I thought you came up like five short. I mean, we have another 12 steps. I mean, if you want to, if you want to share power, you’re gonna have to have, you got to step it up with like 12 steps or, or even 15, you know, you have more than the colonizers. Uh, but but the seven steps are in themselves. They’re they’re pretty radical.

[00:33:33.64] spk_0:
Yeah. You know, it’s funny because I did have some resistance to having seven steps, right? Because it makes it seem like there’s a there’s a quick and easy fix. If I just do these seven things, then we’re done with this and we can move on

[00:33:38.37] spk_1:
prime number. So that

[00:33:56.14] spk_0:
I think that’s that’s unique. I don’t know why, but yeah, so, you know, but I did need to simplify the process in some ways just to help us get our minds around, uh, you know, a process that we can begin. but there is no linear way or a quick way to um, to solve, all these problems or to, to undo what has been done. But there are ways to, to, to move forward and the steps to healing for me where are

[00:34:07.42] spk_1:
listening out for us, just list all seven and then we’ll

[00:34:17.64] spk_0:
talk about, I’m sure. So they’re grieve, apologize, listen, relate, represent, invest and repair. Okay.

[00:34:22.54] spk_1:
Um, so you’ve been thinking about this for a while. I mean this, uh, I just did, I admire though. I admire the thinking that goes into this.

[00:35:30.24] spk_0:
Yeah. So some of it comes from my own personal experience, um, when it kind of coming to terms and with the sector that I’m working in and the disconnection that I felt as a native person in the space and spending time in my community to just re ground myself and my values and um, and kind of acknowledging the wisdom that was in my body and in my community that I could bring to the space. Um, the other parts of it come from, I did lots of interviews with folks who work in nonprofits and philanthropy who were, I think of very forward thinking people in the space activists who are leading movements around the country to get to a place of, you know, what, what, what have you gone through personally to kind of reconcile some of this. Um, and then, you know, a lot of this is also based on an indigenous restorative justice model. So we hear a lot about restorative justice um, in the nonprofit sector. Now, this is a method that’s used in schools and in the criminal justice system to help people deal with things that have gone wrong to kind of get back on the right track. And so this is a model that has come from indigenous communities where we um sit in circle with the offender with someone who has harmed us or done us wrong to get to a place of truth and reconciliation.

[00:35:58.84] spk_1:
So, uh, grieving, uh, you say everybody, I mean because of our inter relatedness where we all need to grieve, including the people of color and indigenous, you know, those who have been oppressed.

[00:37:06.43] spk_0:
Absolutely, we all need to grieve. Um, we need to get to a place where we’re just very clear and honest about the history of this country. What has happened, what the idea of, um, you know, white supremacy, which is not a real thing, right? But why the idea of subscribing to that the harm and the loss that has calls for people of color, but also white people. And uh, you know, I think that’s uh, we it’s pretty clear the trauma and the harm that has been caused a community of color. It’s not so clear. We don’t talk about it very much the loss that uh, the colonization and uh, the idea of white supremacy has actually caused in white communities. But it’s uh, it is, there is a loss there. I talk about it in the book um, of the idea that white people came from from communities where they had cultures and uh tribal ways of, of interacting in many cases um languages and things that were given up in order to assimilate to this idea of being american. And I think now we’re seeing folks feeling a sense of loss about that. That’s why if you see these commercials for these DNA tests are so popular right now because everyone wants to kind of remember where they’re from and they feel connected to that in some way.

[00:37:34.63] spk_1:
Um, and um the the thing you talk about too is uh the orphans orphans, you say that those of us who are descendants of, of the, of the settlers you call us orphans, how’s that

[00:38:54.42] spk_0:
I call them orphans. This is a term apart from some research that has been done on whiteness and it is, it’s kind of speaking to this idea of loss. Again, sort of giving up the culture that maybe from from, from the home country, from where where folks, settlers came from giving up those, those ways of being interacting in community to subscribe to this individualistic way of being in America. And so with that there’s been a lost of sort of that, that mother country um for lots of white folks and a loss of identity because although, you know, I’m not anti american, let me be very clear about that, this is the greatest country in the world. I’m very proud to be a citizen of this country. Um, but there is something about leaving behind and not remembering where you originated from in order to adopt sort of this new culture here. Um you know, and and not um that that makes you feel sort of like an orphan. If you’re not, you have no connection to where your grandparents or from or the language they spoke with, the culture they have. Um and I feel that that’s a loss for many white communities. That is actually a feeling that is shared with communities of color. Um, and if we recognize that loss in that trauma that we have in common, um it opens doors for a different type of conversation about race.

[00:38:58.32] spk_1:
You said a few minutes ago that white supremacy is is not a real not real. Why? Why do you say that? Well, I mean, there’s a white supremacist movement, uh, how are you thinking about it that you say it’s not real?

[00:39:41.42] spk_0:
Um Well, well, the idea that that uh, you know, a certain group of people, white people are superior because of the pigment of their skin is not a real thing. Right? So this wasn’t an ideology that was created um in order to be able to have the types of oppressive movements and systems and policies that have been put in place for many years. And so it is a mindset that has been uh you know, an idea that is not real, but we have built systems and um societal norms around that. You know, growing up I was taught that you know, are sort of the default for me was whiteness, was was better. And so if I were to behave or dress or act in a certain way that appeared to be more white than that was going to be a better thing for me. And so we know that the idea of white supremacy is, you know, the idea of it is not real, but there are very real implications and for how we have adopted that, that belief. All right.

[00:40:11.71] spk_1:
Um and you’re you also encourage uh nonprofits and teams to have a grieving space while we’re talking about, we’re talking about grieve, we just have about a minute before a break, but and then we’ll move on with the seven steps, but what’s a grieving space in an office.

[00:40:54.31] spk_0:
Yeah. So you know, these these steps are our personal, but it can be applied in organizational setting. And so I think especially those of us working in the nonprofit where we’re supporting communities, we need to have space spaces in our in our our work live to be able to talk about bad things that have happened and to grieve that and to feel emotion to be human about it. And so, you know, I share some research in the book and some antidotes of folks who have have done that, and the research shows that there um it’s actually um leads to a much more productive workplace to have moments where we we stopped the work to actually grieve and acknowledge the events are happening, you know, in our communities.

[00:41:33.91] spk_1:
The book is de colonizing wealth, just, just, just get the book, you know, because we can only scratch the surface of it here in an hour. But uh, de colonizing wealth dot com, that’s where you go. I like the idea of the grieving space, you know, uh acknowledge, you know, everything doesn’t go well all the time. It’s impossible. No organization succeeds 100% nothing. So give yourselves time and space to talk about it, acknowledge it, learn from it and and move on rather than it being some cloud over the organization that everybody’s afraid to talk about or something, you know, it’s how how how oppressive is that

[00:41:52.91] spk_0:
very oppressive and in philanthropy is especially because we were sort of carrying around these these secrets of like how this wealth was amassed or secrets that are within these families that um, you know, many people feel bad about. And so we just need to kind of, you know, be truthful and honest about the history and spend time grieving over that so that we can move forward as you said,

[00:42:32.10] spk_1:
and and that was the next step in terms of uh, your next step apologizing recognizing which includes recognizing the source of the foundation money. I mean, you worked for the Reynolds KB is KB. Reynolds Foundation Reynolds tobacco north Carolina. You know that money was raised on the backs of slaves. Um, I’m not going to ask you if the KGB Reynolds Foundation acknowledges that, but that’s an example of what we’re talking about in the, in the step apologizing.

[00:42:35.56] spk_0:
Absolutely no, there was, there was no acknowledgement of that. And uh, chapter one of the book is called my arrival in the plantation because our foundation offices were literally on the former estate or plantation of R. J. Reynolds. And so, uh, really literally and metaphorically I was, I was working there. But no, there was, there was, there was no acknowledgement of that. And I think you see that, you know, in, in north Carolina, recently, the chancellor of the University of North Carolina acknowledged that the history of slaves and building that university and that some of the buildings there named after a former slave owners, what most people of color want. Um, it’s just to be seen and heard and for folks to make that recognition

[00:43:31.70] spk_1:
acknowledge and maybe move to apology. Perhaps that didn’t johns Hopkins University do something similar that, that they had, their founders were uh, johns Hopkins, their founders were slave owners.

[00:43:34.49] spk_0:
I think Georgetown University

[00:43:38.10] spk_1:
Georgetown. Sorry, thank you. Okay. Georgetown, there were pre right. There were priests, uh, priest founders that were slave

[00:44:16.49] spk_0:
owners. That’s right, actually, no. Um a friend of mine who lives in New Orleans as a black woman who is a descendant um and was called to Georgetown to share about her family’s history. And it was a beautiful moment. They set in community together, talking about the history talk acknowledging the contributions of her ancestors. And there’s a big right up in in the paper and you know, this has been a very uh healing I think for the university, but also from for my friend Karen, um who is now having that, you know, that recognition that the contributions of her ancestors, you talk a

[00:44:51.49] spk_1:
good bit about the reconciliation process in South Africa. Um Canada, uh you gotta get the book. I mean, we can’t we can’t tell all these stories. I mean, I know listeners, I know I know you love stories as much as I do, but there’s just not enough time to just get the damn book. Just go to de colonizing wealth dot com, for Pete’s sake. You go right now, if you’re listening live, where are you poughkeepsie? It’s connected. He uh Nottingham Maryland just go to de colonizing wealth dot com. Um okay, listening, you talk about and empathic and generative listening.

[00:46:20.28] spk_0:
Right? So, you know, often um, when we, when we moved through a process like this, we feel bad, we’ve apologized. Um uh, the default sort of like dominant culture way of being is like, okay, I’m done with that. I’m going to move forward. And so, but before you move for an act, you just need to pause to actually listen, Uh, to listen and learn. So to, uh, for, for non profits. You know, I ran a nonprofit, I’ve worked in philanthropy for 14 years. When I asked nonprofits what is the number one thing that you wish funders would do differently? The response is always, I just wish they would listen. Uh, because there’s something about having resources, money, privilege and power when we enter the room, there’s a power dynamic where we automatically feel that we can control the airspace and we have an agenda and the non profits are going to be responsive to what we want. And you know, that often is the case. But the best way to really build a relationship with folks where there is a difference in power and privileges is to actually stop and listen. Put aside your own assumptions and, and try as best you can to put yourself in their shoes to understand their experience and their history. It’s just, it’s just going to make you a better person, uh, feel like listening as a human, right? We all want to be, We all deserve to be heard. And so that is just something that we have to keep reminding folks who have privilege is to, um, to, to stop at times to also listen and to let others be hard put aside the white savior complex. Absolutely. Uh,

[00:46:51.38] spk_1:
listening. We talked about, we talked about that a lot on the show in terms of just donors. And I know you’re next, you’re next step is relating versus being transactional. And that’s, that’s, that’s the beginning of a relationship. As you said. You know, listening, genuine hearing, uh, two whether its donor’s or potential potential grantees. Um, there, there’s a lot to be learned.

[00:46:53.59] spk_0:
It goes back to the

[00:47:08.98] spk_1:
value of bringing, representing the communities that you’re, that you’re serving. Uh, okay. So relation you want us to, uh, you want to relate, let me ask you, you, you, you read, um, how to win friends and influence people. You say dozens of times. You said it doesn’t, I have trouble reading a dozen pages in a book. You’ve read one book dozens of times. Uh, what do you take away time after reading? Uh, the L Carnegie’s book dozens of times.

[00:47:37.08] spk_0:
Well, you know, I still have an original copy from that. I, um, I stole from the library of uh, my mom was a domestic worker and she was caring for frail elderly man. Um, they had this vast library. So I end up with this little book that you stole from an infirm elderly elderly man. I feel terrible about a book. It haunts me to this day. So this is a public, you

[00:47:46.10] spk_1:
didn’t even think to leave like $20 or something

[00:48:26.47] spk_0:
on the table and have it if I had it at that. All right. Um So hopefully this is my my way of giving back, this is my reparations for for that that wrong. But you know, and the one take away from me in that book uh is uh is really kind of connected to relating and listening. Um is when you’re when you’re talking to folks, people just really want to be heard. So mostly you should listen. Um And if you actually just listen more than talk, people are gonna think that you’re a great friend like well Edgar that was such a nice time with you. But even if I didn’t say much and so yeah, it’s really about listening and letting others feel that they are important because they are um you know, we I think people just feel so invisible these days that just by giving people that moment of feeling hurt and connecting with something that they are interested in. Um It’s just gonna really take you much further in building a relationship

[00:48:54.57] spk_1:
and stop the transactional, the transactional thinking. Um You have you you have an example of uh um a like building design, like office design. Kitchens, you’d love to see a kitchen in the center of of offices.

[00:49:31.07] spk_0:
Yeah. You know so sort of like these ideas of like the colonizing virus infects every aspect of our community. So yes, even the way buildings are designed especially buildings that are financial institutions. Think about what banks look like when you walk in and with with all the marble and you know, hard edges, absolutely foundation offices where you have to go through five levels of security to get in as if we’re as if the millions of dollars were in the office. Right? And so we just threw even how we design our offices. And um, you know, the way they appear can be super intimidating for folks who are coming in who need access to resources.

[00:50:45.06] spk_1:
It’s time for a break. Send in blue. It’s an all in one digital marketing platform with tools to build and to end digital campaigns, They look professional, they’re affordable, they keep your campaigns organized. It’s all about digital campaign marketing. Most software. You know, it designed for big companies with big, big enterprise level price tag, sending blue is priced for nonprofits. It’s easy to use and walks you through the steps of building a digital campaign. You want to try out sending blue and get the free month. You go to the listener landing page at tony dot M A slash send in blue. We’ve got boo koo but loads more time for de colonizing wealth. Now we’ve got several more minutes for de colonizing wealth. Again, just go to de colonizing wealth dot com, get the thing, get the book just in terms of designing organizations, uh more egalitarian you’d like to see.

[00:51:35.86] spk_0:
Absolutely. So uh, one of the steps of the book is represent and what you look at the, uh, the demographics of the nonprofit sector and especially in foundations that part of the sector. We still have a long ways to go with diversity, particularly when you look at the board of directors and the ceo positions folks who really hold power in organizations. So what are the, what are the ideas that I put forth in the book? Is that foundations should have a requirement that at least 51% or at least 50% of their boards to reflect the communities they serve. Um, this would drastically change what, you know, shake up what the seats on the bus look like. But this isn’t this, uh, far from what is required of, of many nonprofits. Funders actually are, you know, requiring this, of their nonprofit, that their funding, um, and many government organizations that receive government funding, federal funding have these types of requirements that the folks who sit on the boards must be folks who are benefiting from the services of those nonprofits.

[00:51:49.40] spk_1:
Again, representative? Absolutes, yeah, that’s a, that’s a stretch. 51%.

[00:51:57.36] spk_0:
It’s a stretch. It’s a stretch. But, you know, um, the conversation has, has been zero about it. So I figured, you know, if we put something a bold vision out there to help us imagine what’s possible, maybe we’ll get a little bit further down the road.

[00:52:17.45] spk_1:
And there are some examples you cite the novo Foundation in the book. Uh, they have a women’s building that they’re, they’re repurposing some old warehouse or something to turn into this building and, and the decisions being made by, by women who are going to be using the

[00:52:45.25] spk_0:
building. Absolutely. There’s some great examples of foundations and funds that are um, really, um, putting these values into practice in their work. Novo is, is a foundation that I really appreciate. Jennifer and Peter Buffett, the founders of the Novo Foundation, wrote the forward to my book. And they are folks that you, if you get to know them, you can see that they have done this work. Um, and it shows up in how they give, they are a foundation that absolutely sits in community and listens um, to folks who are impacted by, especially women and girls, which is an issue they really care about and they fund in a way that is responsive to what they really need versus what the foundations agenda might be.

[00:53:06.85] spk_1:
Is it no vote that funds for five years or seven years? It’s guaranteed you cite this in the book, no matter how much trouble you’re having in year 123, you’re going to be funded for five or seven years for their initial commitment.

[00:53:39.05] spk_0:
Right, Right. And, and that type of long term commitment is, uh, you know, something that, that is the best type of funding, you know, folks can be, you can focus on building relationship versus so I’ve got to meet these certain objectives, so I can keep getting this money year after year and so to be relieved of that, that pressure of thinking about where am I gonna, you know, how am I going to pay the salaries next year? Um really allows folks to have the freedom to think about the actual work that they’re doing in communities

[00:53:44.55] spk_1:
and and planning and and can plans that are being

[00:53:47.42] spk_0:
one only 1 or two

[00:53:56.25] spk_1:
years. Um so we kind of mishmash together, you know, relating and representing um investing.

[00:54:44.74] spk_0:
So investing is really a call to philanthropy to think about using all of its resources for um for for the public good, right. And so we are not going to be a sector that achieves equity that that is really moving the needle issues If we’re supporting with the 5% in our right hand, Really good work, you know, mission-related work. But in our left hand we are investing 95% of our resources in um industries and causes that are extractive that are, you know, really canceling out the positive of of our resources. So, you know, there are great foundations like the Nathan Cummings Foundation for example, who just recently declare that 100% of their assets, their entire corpus is going to be used in support of their mission.

[00:54:47.29] spk_1:
Uh Again, other examples in the book and uh we just have about a minute or so before we have to wrap up actually. Um, so talk about your final step, which is

[00:55:28.04] spk_0:
the final step is repair. Um, all of us who are philanthropists are givers and as we’re getting close to the end of this year, we are all philanthropists. I’m supporting, um, nonprofits in our communities. Think about how we can use money as medicine, how can we give in a way that is helping to repair the harm that has been done by colonization in, in, in this country. And so think about looking your personal portfolio. Are you giving to at least one organization of color um, to support grassroots leadership? So reach across, um, and support folks who may not look like you invest in ways that are helping to unite us versus thinking about some of the traditional ways of giving that have not been, uh, you know, along the lines of thinking or exercising these types of values.

[00:55:50.94] spk_1:
Okay, so I’ll give you the last 30 seconds, uh, in the way that the way I learned that natives are the original philanthropists was by what you, what you talk about your mom.

[00:56:13.63] spk_0:
Yes. So, you know, I think a lot of giving, when we look at giving in this country, the biggest philanthropist, philanthropist or folks who are giving the most highest percentage of their income incomes are actually poor people. And so I do talk about my mom in the book, um, who, um, was, uh, you know, is actually very low income and but yet she gave to our community and and how to run a ministry of our church to support Children,

[00:56:18.38] spk_1:
the bus ministry,

[00:56:19.36] spk_0:
the bus ministry.

[00:56:20.24] spk_1:
Just gotta, you gotta get the book,

[00:56:21.23] spk_0:
you got to read the bus ministry and so it’s giving of time treasure and talent, not just resources and so all of us who are caring for our communities in ways that are um you know through love is uh we’re all philanthropists

[00:56:33.73] spk_1:
get the book, go to de colonizing wealth dot com. Edgar Villanueva, thank you so much.

[00:56:37.97] spk_0:
Thank you for having me on tony real pleasure

[00:57:40.83] spk_1:
next week converting followers to donors with Adora drake, if you missed any part of this week’s show, I beseech you find it at tony-martignetti dot com were sponsored by turn to communications pr and content for nonprofits. Your story is their mission turn hyphen two dot C. O. And by sending blue, the only all in one digital marketing platform empowering non profits to grow tony-dot-M.A.-slash-Pursuant in Blue, our creative producer is Claire Meyerhoff to show social media is by Susan Chavez. Mark Silverman is our web guy and this music is by scott stein, thank you for that. Affirmation scotty Be with me next week for nonprofit radio big non profit ideas for the other 95 go out and be great. Mhm Yeah

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