Tag Archives: Nonprofit & Exempt Organizations (NEO)

Nonprofit Radio for January 11, 2021: PPP 2.0

My Guest:

Gene Takagi: PPP 2.0

Gene Takagi

Gene Takagi returns with the ins-and-outs of the second round of Paycheck Protection Program help for your nonprofit. He’s our legal contributor and managing attorney at NEO, the Nonprofit & Exempt Organizations law group.

 

 

Listen to the podcast

Subscribe to get the podcast
Apple Podcasts | Spotify | Google Podcasts | Stitcher

Get Nonprofit Radio insider alerts!

I love our sponsors!

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

 

Dot Drives: Raise more money. Change more lives.

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

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

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

View Full Transcript
Transcript for 520_tony_martignetti_nonprofit_radio_20210111.mp3

Processed on: 2021-01-10T22:40:39.338Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2021…01…520_tony_martignetti_nonprofit_radio_20210111.mp3.454479925.json
Path to text: transcripts/2021/01/520_tony_martignetti_nonprofit_radio_20210111.txt

[00:01:50.04] spk_1:
non 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 heh abdominal podcast. Oh, I’m glad you’re with me. I’d suffer the effects of Vibe bro Sis, if you infected me with the idea that you missed this week’s show P P P to zero Jean Takagi returns with the ins and outs of the second round of paycheck protection program. Help for your non profit. He’s our legal contributor and managing attorney at Neo. The non profit and exempt organizations law firm Antonis Take two. I’m still optimistic, were sponsored by turn to communications, PR and content for nonprofits. Your story is their mission. Turn hyphen two dot ceo and by dot drives. Prospect to donor, Simplified tony-dot-M.A.-slash-Pursuant demo and a free month. What a pleasure! Genuine pleasure to welcome back Jean Takagi. You know him, for God’s sake, but let’s do the formalities he deserves. Gina is our legal contributor and managing attorney of Neo, the non profit and Exempt Organizations Law group in San Francisco. He edits the wildly popular non profit law blogged dot com, and there’s the American Bar Association’s 2016 outstanding non profit lawyer. He’s a part time lecturer at Columbia University. The firm is that neo law group dot com, and he’s at G Tack g T a k. Welcome back, Jean. Happy New Year.

[00:01:52.04] spk_0:
Happy New Year, tony. Great to be back with you. It’s

[00:01:54.34] spk_1:
good to have you. Thank you. It’s outstanding, lawyer. Now, that’s five years old now.

[00:01:59.14] spk_0:
Yeah, I think that that probably has to go down the wayside.

[00:02:25.54] spk_1:
Take that. Actually, Is it more embarrassing now then? It always has done What? What’s he done in the past five years? Exactly. I’ll take that. Alright, we’ll take that out from starting next time. All right, Um, so the paycheck protection program is is back version 2.0. Um, what what’s your what’s your overview of it? The p p p re ducks.

[00:04:28.64] spk_0:
So it’s a good thing, of course, and it comes in sort of within the broader context of a kn appropriations act that’s to help stimulate the economy. And we know how hard co vid and, um, all of the shutdowns that have been caused by the coronavirus, all of the health care issues we have presented a huge challenge for our economy and for the nonprofit sector as a whole. I think back in August, The Washington Post had written some article that suggested one third of nonprofits could ultimately shut down at the end of this crisis. I think that might have been a little overblown. Hopefully, the vaccine is going to contribute. Thio Um, the development of several vaccines contributes to a little bit more of a recovery, but we still seem to have a long slog through this. And that’s why more money needed to get out to stimulate the economy and particularly nonprofits who are impacted two ways. One by just less money coming in. Less revenues, less donations. Andi the greater need for so many people who need the service’s of non profit. So the good part of the second kind of draw of the P P P loans is that there’s more money been made available. Um, it’s still not enough in my personal opinion, and hopefully we’ll see more, but 11 of the really good things about this second draw, the P P P loans is that you can go in for a double dip now, So if you are a kn organization. One of the I believe it’s 180,000 non profits that applied and received the first round of loans. Who came, actually, which came into parts? Um,

[00:04:29.30] spk_1:
180,000. Sounds low to me. I’m not I’m saying that I heard it was more. But of the 1.51 point six million or so only 180,000.

[00:04:40.14] spk_0:
Yeah, I believe that’s the number that that I I have that that actually received loans

[00:04:45.13] spk_1:
12% or something like that.

[00:04:47.94] spk_0:
Yeah, on dhe. You know, so out of those, the original set of loans under the Cares Act on day one of the amendments to that so you could only come in once, so you get one loan out of them. You can’t go back in for another loan. Um, so this second draw actually allows a nonprofit that took out a loan, used it up, or is going to use it up to come back in for a second loan. And that’s really important with the covert crisis dragging out.

[00:05:47.84] spk_1:
So, um, let’s see, just I know you You introduced a second raw, but let’s let’s talk about the folks who maybe did not get a p p p low in the first time. So that so for nonprofits, That s so they they certainly are eligible this time to, um, let’s talk about like, you have to have fewer than 500 employees, which I’m sure all our listeners do. Um What who else is what? Like what else you have to do to be eligible for for a loan first time through.

[00:05:50.64] spk_0:
So I think that the numbers actually 300 or fewer on that

[00:05:54.93] spk_1:
isn’t that for the, isn’t it? For the second draw?

[00:06:59.74] spk_0:
Yeah, I think this whole thing is sort of called. I’m sorry. You’re right, tony. So that that refers to the second draw for for, um, organizations that have received a P P P loan. So it’s 300 or fewer. The original draw was 500 or fewer. Um, and demonstrating at least a 25% reduction in gross revenues between the same quarters in 2020 and 2021. So you took a look at the first quarter. You measure first quarter versus first quarter, second quarter versus second quarter. You can’t mix and match. So the same quarter in two years if you experienced at least 25% reduction in gross revenues. And that’s how you had reported in the 1990 year gross revenues figure, then you would be eligible for for that, that second draw. And I believe that’s the standard for the first draws. Well, um, and it’s subject to a maximum of 2.5 times. The average monthly payroll costs up to $2 million in this round.

[00:07:10.94] spk_1:
Okay, Okay. And those payroll costs, you can choose, right? A period between eight weeks and 24 weeks. Correct that. You want that you want to be compensated for And that and, uh okay, that you wanna be compensated for, right? So, between to two months and and six months,

[00:07:26.84] spk_0:
right, starting on the origination of the loan. Okay. Yeah.

[00:07:37.44] spk_1:
Okay. But but to be eligible, you have to demonstrate a decrease in gross revenue of 25% or more. Correct. Incomparable quarters. Okay. Okay. Now for folks who again, this first draw the first time through it at this point so far, um, they should be going to their bank. Right? You need a bank. That’s that’s s B A Small Business association approved, but it seems like your bank will be the place to start at least looking for where you can find a lender.

[00:07:59.74] spk_0:
Yeah, absolutely. That’s that’s the place to go to get the application forms. And yes, the S B A operates the loan through the sort of approved banks that

[00:08:09.88] spk_1:
the bank. Yeah, And in my experience, if your bank isn’t an S b a approved lender, I had heard that your your bank can help you find one. You can also just search for them in your area. But you might be able to get a referral from your own bank if they’re not a S B A lender.

[00:08:28.06] spk_0:
Yeah, and you can, I think, find that out on the Web as well. If

[00:09:18.64] spk_1:
it’s time for a break, turn to communications. The Wall Street Journal, The New York Times You wanna be in papers like that? What about CBS Market Watch? The Chronicle of Philanthropy. Turn two has the relationships with outlets like these. So when they’re looking for experts on charitable giving non profit trends for philanthropy, they call turn to turn two calls, you turn hyphen two dot CEO now back to P P p. To point out now all the all the money you get, even though it’s called paycheck Protection Program does not have to go to a paycheck. There’s other things that you can spend what up to 40% on

[00:10:53.34] spk_0:
that’s That’s exactly the number tony. So 60% has to be payroll related expenses that that you are using the funds for but up to 40% could be used for other things. And in the first round of the Cares Act sort of payroll protection plan, program loans or forgivable loans, they had things like mortgage, certain qualified mortgage payments and rent and utility expenses. They didn’t offer a lot more. So this round, this second draw, whether you’re taking it for the first time or not, I’m just going to refer to it is the second draw. Okay, he BP loans. You can use it for four other covered expense areas, and they include operations expenditures, which sort of refer to software and cloud computing service’s for businesses and have to do with payroll H R. Accounting all of those things. So if you need that, you can use it for those things property damage costs if they happened in 2020 and they were not covered by insurance and that might be related to looting or other public disturbances. UM, covered supplier costs which are for purchase of goods that are essential to the operations of the business, generally made pursuant to a contract that was in effect prior to the covered period of the eight or 24 weeks. Ah, nde covered worker protection expenditures, so that’s really important. So that includes the PP, eat of personal protective equipment, face masks and everything else, and also operating and capital expenditures that air related to meeting worker or customer safety requirements. So if you need to put barriers up, you know those plexi barriers between things like that,

[00:11:22.27] spk_1:
maybe upgrade your h v a c so that Z Okay,

[00:11:23.04] spk_0:
okay, so you want to take a look at what the requirements are in your area. If you need to spend on that, um, this is also going to be available for those type of expenses up to 40% so again, 60%. This is mostly focused on payroll in keeping people in jobs. Andi organizations operational, but 40% realizing that you do have some other costs that you need to have to be able to run the business. It’s not just employees, so this was a little bit more thoughtful in sort of creating that that those uses for P p p loan funds.

[00:12:39.04] spk_1:
Let’s talk about forgiveness because that’s a big advantage to these p p p loans that if you do it right, your loan could be 100% forgiven if you do it right. So what do you have to do right now? I know we don’t know about, like, forgiveness forms that even for the first round. I mean, I in my business got a P p p low in the first round, and I’m still waiting for guidance on forgiveness. It Z S B A has gone back and forth many times, and so my bank doesn’t even have the forms ready yet for forgiveness from the first loans, which I got like in March or April or something. So but there are guidelines about what you’re supposed, how you’re supposed to spend to be eligible for the give nous for the forgiveness when the forms and the process do ultimately come out. So what’s What’s what is s b a saying there,

[00:12:56.34] spk_0:
So yeah, first, just a comment on whether we’re going to see those forms out soon

[00:13:04.68] spk_1:
so we could get the loan forgiveness from from March or April. Yeah,

[00:13:09.24] spk_0:
yeah, eso It’s been a long time. The S b A actually has some forms out, and they did come up with a little bit of guidance in December. But the individual financial institutions, the banks haven’t yet developed all of their own forms on DSO. Yes, it’s a combination of looking at both of those forms, and we haven’t seen much happening there across all banks. Yeah, so that I think will be coming pretty soon, but we haven’t seen it just yet.

[00:14:03.94] spk_1:
I guess I should be kinder to the S B A to I think overall, they managed a new emergency program pretty well. Eso you know, clearly their priority was getting the money out, not worrying about the forgiveness at the back end. So, uh, not trying to be harsh against SB A. They’re working under short deadlines and people in great need, So they focused on what’s more important getting money out. All right, so what do they say about how you should spend if you wanna have your loan forgiven.

[00:14:08.44] spk_0:
So one of the things is what we talked about earlier. About that 60 40 split. Well, that is the requirement for loan forgiveness. So if you don’t want the loan to be forgiven, you don’t actually have to look at that 60 40 split, right? You could just pay back the loan at the interest rate, which I believe is 1%. Um, but I think nonprofits have taken out this loan, have taken it out with the very intent that it be forgivable loan and to use it for those purposes. So in order for it to be forgivable against, 60% must be used for payroll related expenses and 40% for those other covered categories that I mentioned. So, you know, the mortgage, the rent utilities and those four new categories that came out with this second draw that would apply only to the second draw amount. So amounts coming out of this 900 billion that that was part of this new act that came off this new relief act. Um,

[00:15:25.04] spk_1:
you wanna make sure you keep your documentation so you can prove when it does come time for the forgiveness application, because you have to apply that you can prove that you spent the money on the bona fide expenses that are allowed. And you didn’t spend more than six more than 40% on the on the non payroll. Correct? Yeah, to be documentation.

[00:16:20.94] spk_0:
And what I’m hearing back is from the first application, which you’ll soon see tony. The reports that they asked for are pretty complicated on dhe tough, and they’ve gone back and forth on like what to include and what not to include. But it can be pretty tough. The good thing is about this second draw. This new act that that was signed into law the just a few weeks ago at the end of the year is that if the loan was for 150,000 up to $300,000 or less, it’s going to be a one page one. So they’re going to make it super easy, and it’s really gonna you know, they haven’t released what that form exactly looks like. But they said what they’re going to ask for is the number of employees that you were able to retain the estimated amount spent on payroll costs. So did you meet that 60% basically, the total loan value and an attestation? So you basically you’re signing saying, I attest that I complied with all the requirements of the P P P loan program. So rather than documenting every single thing out, if it’s $150,000 or less, get most of the listeners. They’re probably going to fall into that category. Um, they’re going to be able to do with the one page form. But there are several larger nonprofits that they’re gonna have to file the more complicated forms. And to get you know, to your point, really good records really critically important for this because you do want to get this loan. Forget

[00:19:54.44] spk_1:
it’s time for Tony’s Take two. Yes, I’m still optimistic. Even after what happened last Wednesday at our nation’s capital and the Capital building I still am. The optimism is for the whole year. It’s not just for the first 10 days, so I still feel good. Look, they’re already started arresting people for the trespassing and the unlawful entry into the Capitol. They’ve already arrested folks. So and there’s gonna be many more coming, so that gives a little bit of short term, uh, solace. I think that people face justice for their transgressions against our capital. But beyond that, beyond that, I just look forward to new years and I am feeling good that the country will be in a better place. The world will be in a better place this year. Then it was last year 2020. I mean, think about the pandemic to look how much further we’ve come in. Just what? The past 4 to 6 weeks with vaccines rolling out. Okay, Not as fast as they were supposed to have, but vaccines air rolling out. I think it’s gonna be a good year. 2021. I say. It’s gonna be a good year. That is tony Steak, too. Let us return to P P. P to zero with Jean Takagi. There’s something that you and I talked about, um, earlier in 2020 when the first paycheck protection program loans were offered was it was a little complicated Then if you had gotten another kind of loan, the e ideal economic injury disaster loan and you if you gotta an advance on that, which I’m not sure those advances really went out the way they were supposed to, but they were supposed to be, like, up to $10,000. You get in, like, within three days for the e i d l. But I know in my own case, I applied for that. But, um, didn’t didn’t it didn’t end up really being needed. And it was nowhere near the three days. Um, it was more like three months, and it all just came at 11 time. That’s a separate. But so that was related to you know that advance if you if you got it was related to paycheck protection program forgiveness, the S B A. Wasn’t gonna allow you toe be forgiven on ah e ideal loan advance. Now, you don’t have to worry about that anymore, right?

[00:19:57.31] spk_0:
Yeah, that’s I mean, that’s one really good thing about this

[00:20:01.09] spk_1:
two minutes set up for something that doesn’t matter anymore.

[00:21:00.74] spk_0:
But it is important because some some of your listeners may be out there thinking, Oh, I can’t You know I can’t get this. Um uh, advance if I want loan forgiveness on Now it’s like, No, you can you can get both. So that’s really important that they repeal that former restriction on DSO. Now you can get both. Just a reminder for that the ideal stands for economic injury disaster loan on dhe It is alone, except when it’s called an ideal grant, Um, or advance. In which case, the idea is is that you’re going toe Qualify for it If you’re located in a low income community, you suffered an economic loss greater than 30%. So this is a little bit more stringent. And the second drop TPP loans

[00:21:04.31] spk_1:
25%.

[00:21:05.09] spk_0:
Yeah, and the same requirement that you employ not more than 300 employees. So it’s it’s a different program. I misspoke earlier and talked about $900 billion being the P P. P program, but that 900 billion was actually the total

[00:21:19.48] spk_1:
that was the fullest

[00:21:47.34] spk_0:
package. Yeah, eso of that 284 billion roughly was for the P P P program. Second draw loans that were coming out again, Whether you’re taking it for the first time or second time again on 20 billion for the e I. D. L grants those ran out very quickly on DSP. A page has still not been updated. Web page has still not been updated. So it will currently say we’ve run out. We don’t have these available, but we’re waiting for the update as a result of this new act, so you have to just keep looking for it.

[00:21:56.04] spk_1:
Okay? Okay. The money is there for the the ideal grants,

[00:22:10.54] spk_0:
but it’s 20 billion versus 284 billion for the P P P second draw loan. So it is a smaller pool of money. So just toe, be aware that that yeah, you’ll have to go in pretty quick if you’re going to qualify

[00:22:21.04] spk_1:
in the second drawer. Loans got, um, expanded with 501 C six is now now eligible. Which they weren’t before.

[00:22:31.34] spk_0:
Yeah, you know, I think non profit that’s really wanted, like a za sector. They said, why is it restricted? Just to 501 c three. There’s lots of other types of nonprofits that air doing important work here that are going to get tremendously impacted and small businesses are allowed toe sort of get the benefits of these loans. What about like chambers of commerce, especially for, like small regional areas that could really impact multiple businesses, and not just one or organizations that are focused on the travel business industry. So if you’ve got a trade association of related to travel, they can impact a broader industry and to lose them, um, could be really detrimental thio an entire industry and not just to a single business. So the idea was, let’s get other nonprofits involved or eligible as well. So 501 c six. That was kind of the lobbying for the 501 c six is specifically on. Yes, they become eligible for this P p p round A ZX well, but they have some of the same requirements, so they can’t employ more than 300 persons. But they also have some lobbying limitations. Um, that air there, so s

[00:23:42.90] spk_1:
so if you’re a C six, you gotta look closely.

[00:24:08.64] spk_0:
Yeah, and one other thing just about this and I won’t go into the details of C six. But generally speaking, um, the government said, if you are a lobbying or political like organization, that was principally into lobbying and political activities. A lot of five but one C four organization social welfare organizations would fall into that category. Um, then you are not eligible for the PP, and that remains still a restriction on participating in this. So the 51 C six is that that participate? They really they’re all sorts of lobbying number restrictions that are involved. But generally speaking, if you’re principally a lobbying organization or political action organization, you will not qualify for these

[00:24:31.91] spk_1:
and see fours are not eligible.

[00:24:34.24] spk_0:
Yeah, so by and large, yeah.

[00:24:54.84] spk_1:
Okay. There was a lot in the press about the deductibility of the expenses that you use the money for. I’m talking now about the the 40% That’s non payroll. Um, initially, you weren’t allowed to deduct what used to be deductible if you spent P p p money on it, which was kind of, Ah, a clawback. You lost the deduction. They have the money was forgiven if you did it right, but you had a but you couldn’t deduct the expenses that you spent it on. So it was like it was like giving and then taking that’s that’s been changed. Those expenses, air now deductible.

[00:26:23.41] spk_0:
Yeah. Although let’s sort of frame it to tony that most nonprofits, that we’re talking about our tax exempt in the first place so they don’t have to worry about deductions except with respect to their unrelated businesses. And so, for taxable and for taxable entities. Yeah, Or if, if a non profit does have unrelated business income resulting coming from a specific business and that gets a little bit more complicated, it is really important to know that if you receive the P P p loan and you spent money on some of those expenditures that you can actually deduct from it. So the rationale before is that the government is giving you money so you shouldn’t be able to spend it and then get another tax benefit of a deduction with it, because the government just granted that money to you. But overall, in terms of stimulating the economy, it was just too popular. And just to important to the overall goal, Thio restrict that from happening. So yes, now you can get a P P p loan and you can spend it on legitimate business expenses within that sort of that that range of qualified expenditures that we talked about and you could get a deduction for those things as well. So yeah, good point.

[00:27:39.34] spk_1:
Thank you. Thanks for clarifying to time for our last break. Quote. There’s nothing as simple as dot drives. Our executive team meets once per week to sit down and go through our dot drives pipelines. It’s fun to watch them have a healthy dialogue and to see them get excited about their numbers rising toward their goals. Sounds exciting. That drives has allowed us to take those key relationships and bring them to a deeper level. End quote. That’s Wendy Adams, director of donor engagement at Patrick Henry. Family Service is prospect to donor Simplified. Get the free demo from DOT. For listeners, there’s also a free month. Go to the listener landing page at tony dot Emma slash dot We’ve got but loads more time for P P p two. What else? What do you wanna talk about? Tpp Wise way didn’t cover.

[00:28:11.94] spk_0:
Well, I thought I’d talk about something a little bit fun just to start off with E. Sure. So there’s the three martini lunch deduction, Um, which is a kn interesting deduction. Um, but basically, you know, I think it’s been since the eighties, where that if you had a business expense and this is again mostly for for profits. But it’s one that puts a little bit of a smile on my face, although there’s some serious consequences that can flow from it. But

[00:28:14.03] spk_1:
we’ll go ahead and smile. Gene, allow yourself to smile. Yeah, you have to qualify your given unqualified smile.

[00:28:31.04] spk_0:
So since the mid eighties, I think if you are I in our separate businesses tony took somebody out, took each other out for lunch, You know, 50% would be deductible if it was a legitimate business lunch. Um Well, um, President Trump and the outgoing administration really felt important to give back um, Thio 100% deductibility. Eso business lunch is going to be deductible up to 100% for two years s. So this is sort of received the nickname the three martini lunch deduction. Um and yeah, I mean, there implications to this because obviously this will have a tax impact. And I believe the final document that put into the PDP loan in the whole stimulus package in late December with somewhere around 15,000 pages, So I can’t imagine that somebody has read all of this yet. Um, but the impact the economic impact of this will eventually be sort of a judge. But this could cost, you know, the government a billion or $2 billion in lost revenues. So it does have implications there.

[00:30:00.14] spk_1:
Can this also have impact for, um, employee of a non profit? Who lets, say, does a ah business lunch and their employer does not reimburse that expense. So then when they’re deducting, they can then deduct that expense if they itemize, and it would now be fully deductible instead of only 50% deductible. Is that is that true for non profit employees?

[00:30:32.64] spk_0:
I don’t believe tony. So generally I think, you know, the best interest would would be for the non profit to reimburse, employ. Um, but if the employee is going thio state that it was, ah necessary business expense, it’s going to be a little bit more difficult. Thio do so for them. And I don’t think that they would get um

[00:30:33.23] spk_1:
Yeah, like if they took a donor, Suppose they took a donor to a lunch?

[00:31:18.14] spk_0:
Yeah, for that again, I would think it would be the nonprofits responsibility. Thio to to reimburse them if they individually took them out. I’m just wondering how that business expense would work out where they don’t have a sole proprietorship. You know, as I think about it a little bit more, tony, I guess the rules would still apply. So it is just a question about whether they could get the deduction in the first place. They can get the deduction in the first place, and it’s possible that the 100% rule might apply. But I’m not sure that it would in this case, because it’s not necessarily their business expense. So I don’t think I have anything definitive for you, but it’s kind of like, you know, the auto expense deduction. So if you know if your business

[00:31:28.31] spk_1:
car for business purposes right, you get 57 cents per mile or something like that, whatever it is,

[00:31:34.92] spk_0:
yeah, gets adjusted every year. But if you’re doing it for ah, non profit organization, your deduction rate is much, much smaller. It’s I can’t remember the number, but it’s like 14 cents, um, so you don’t get the same benefits when you’re doing it for another organization?

[00:31:53.82] spk_1:
Is that for a volunteer or that applies to employees. Also,

[00:31:57.84] spk_0:
it would apply to anybody who’s taking that deduction on their own s. Oh, okay. Okay. Yeah. Best for the non profit to reimburse.

[00:32:34.54] spk_1:
Yeah. Spitballing. Okay, um, I’m glad you’re smiling over the three martini lunch. That’s good. Let’s go. What? Well, we could cynically say that was a gesture A KN award for focus on Well, doesn’t have to be Wall Street, but we could be most cynical and say it was for the president’s Wall Street friends to now deduct all there all their fancy meals in New York City at 100% instead of only half.

[00:32:40.54] spk_0:
Yeah, that’s right. And I I think that’s the cynical viewpoint

[00:32:50.54] spk_1:
e. There’s no question of that. That’s time. But then there’s the

[00:32:51.25] spk_0:
other side of that. Well, can stimulate the restaurant

[00:33:11.14] spk_1:
well, and they stimulate the restaurant economy. Yes, industry. And also there are small businesses. Everybody does not own a Wall Street business in New York City. Of course. All right. Onley only only holds 80% true. Um what? Anything else? Anything else that you think non profit need to know about P p p two point. Oh,

[00:33:16.64] spk_0:
well, I think out of the same kind of act where the pee pee pee loans came out of was important provisions regarding the charitable contribution deduction. So as long as we were talking about deductions, I thought it might be important to know that

[00:33:30.57] spk_1:
for your donors,

[00:33:48.44] spk_0:
Yeah, so for donors. So when we talked about deductions and itemizers, you know, as a result of the Trump Tax Act, um, some years ago, now a tw the start of his administration, we ended up with having, you know, itemizers, um, mhm being reduced from, I think, something like 35% of all taxpayers, down to about 10% of taxpayers. Meaning that 90% of taxpayers would not get the benefit of a charitable contribution deduction because they would take the standard deduction rather than itemize. It would be better for them. So the vast majority of taxpayers, the math, vast majority of small organization donors are not going to get a tax benefit from giving a charitable contribution anymore. So, you know, we’re still relying on them to do it because they believe in the organization and its mission and the people there, and you know what it’s doing but the tax benefits not going to be there anymore until the cares Act provisions last year that said, Well, even if you’re non itemizing, you can deduct up to $300 Is an individual $600 for a married joint filer? Um, above the line, basically. So you can you can get that deduction even if you’re not itemizing.

[00:34:55.48] spk_1:
Take the standard deduction, but you can add another up to $300 per person,

[00:36:21.13] spk_0:
Right? So what this bill does is it Extended it out. So now we will. The previous bill was going Thio run out and we’ve got now an extension of this for another year, so that is a good thing. So that was only gonna last through 2020 Now, Now we have it for 2021 A ZX well, and and, uh, another thing or are somewhat related thio that are just sort of other relief provision. The measure provides an additional $300 per week and unemployment benefits through March 14th is gonna be helpful. Um, there’s a moratorium on evictions that was going to expire December 31st, 2020. And now that’s, um, uh, going to be extended out for a month. Not very much, but every little bit helps right on $25 billion available in additional federal funding for assistance to renters. So we will see if that if that actually plays out. And finally, there’s an extension of the Cares Act employee retention tax credit through July 1st. So that’s a credit. So versus a deduction, which you take after you figure out what your taxable, you know, um, in determining your taxable income. I’m sorry. And the credit after you figured out what your taxes are that would apply against your taxes. So there’s an employee retention tax credit. Um, that’s been made a little bit simpler. It’s a little too complicated for probably people’s interest on this radio program. But take a look at it as a tax credit might be really valuable to some organizations that might not otherwise qualify for PDP. Forgivable

[00:36:46.96] spk_1:
long. Okay. For employee retention. Yeah. Okay. Okay. How about we leave it there? Gene Sound. Okay,

[00:36:54.03] spk_0:
That sounds great, tony.

[00:37:58.63] spk_1:
Okay. Thank you again. Thank you for doing P p p re ducks. Two point. Oh, uh, course. Gene is managing attorney of Neo. You’ll find the firm at neo law group dot com. He’s at G Tack, and you should be subscribing to the wildly popular non profit lob log dot com. Thank you very much, Jeanne. Always a pleasure, tony. Thanks Next week. The hot sauce principle. 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 ceo and by dot drives Prospect to donor. Simplified for a free demo and a free month. Our creative producer is Claire Meyerhoff Shows 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 non profit radio big non profit ideas for the other 95% Go out and be great

Nonprofit Radio for December 20, 2019: Impeachment, Say What? & #SaveDotOrg

I love our sponsors!

WegnerCPAs. Guiding you. Beyond the numbers.

Cougar Mountain Software: Denali Fund is their complete accounting solution, made for nonprofits. Claim your free 60-day trial.

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

Get Nonprofit Radio insider alerts!

Listen Live or Archive:

My Guests:

Gene Takagi

Gene Takagi: Impeachment, Say What?
What’s your nonprofit allowed to say about President Trump’s impeachment and potential removal from office? What about the 2020 election? What’re your employees allowed to say, where and when? Gene Takagi has the answers. He’s our legal contributor and principal of NEO, the Nonprofit and Exempt Organizations Law Group.

 

 

Amy Sample Ward

Amy Sample Ward: #SaveDotOrg
There’s a possibility that management of the .org domain will be privatized. The #SaveDotOrg movement thinks that’s a bad idea. NTEN is part of the opposition movement and Amy Sample Ward explains why. She’s our technology and social media contributor and CEO of NTEN.

 

 

 

 

Top Trends. Sound Advice. Lively Conversation.

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

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

Get Nonprofit Radio insider alerts!

Sponsored by:

Cougar Mountain Software logo
View Full Transcript
Transcript for 470_tony_martignetti_nonprofit_radio_20191220.mp3

Processed on: 2019-12-21T13:49:21.532Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2019…12…470_tony_martignetti_nonprofit_radio_20191220.mp3.628627623.json
Path to text: transcripts/2019/12/470_tony_martignetti_nonprofit_radio_20191220.txt

[00:00:12.14] spk_1:
Hello

[00:00:41.93] spk_2:
and welcome to tony-martignetti non profit radio. Big non profit ideas for the love, their 95% under aptly named host. Oh, I’m glad you’re with me. I’d turn extra tropic if I saw that you missed today’s show. Impeachment. Say what? What’s your non profit allowed to say about President Trump’s impeachment and potential removal from office? What about the 2020 election? What do your employees allowed to say, where and when? Jean Takagi has the answers.

[00:00:43.68] spk_3:
He’s our legal contributor and principle of neo the non profit and exempt organizations Law Group,

[00:00:51.04] spk_2:
then save dot or GE. There’s a possibility

[00:00:53.45] spk_3:
that management of the dot org’s domain will be privatized. Save dot org’s movement thinks that’s a bad

[00:00:59.84] spk_2:
idea, and 10 is part

[00:01:01.88] spk_3:
of the opposition movement. And Amy Sample Ward explains why she’s our technology and social

[00:01:06.93] spk_2:
media contributor and CEO of 10 on tony Steak, too.

[00:01:14.04] spk_3:
Thank you for 2019 were

[00:01:14.24] spk_2:
sponsored by wegner-C.P.As guiding you beyond the numbers wegner-C.P.As dot com. But Cougar Mountain Software Denali

[00:01:54.24] spk_3:
Fund is there complete accounting solution made for nonprofits tony-dot-M.A.-slash-Pursuant Mountain for a free 60 day trial and, by turn to communications, PR and content for nonprofits. Your story is their mission. Turn hyphen to dot CEO, and I’m hoping that we’re gonna welcome Jean Takagi back. Do we have him? We’re trying. OK, uh, he’s in. Is he in the conference? Okay, we’re trying to call the conference, so I don’t know. Gene probably cannot hear us. So what we’re gonna be talking about is, um,

[00:02:02.93] spk_2:
some some stuff on, uh, what’s permissible

[00:02:37.85] spk_3:
for 501 See three’s to talk about, um, whether it’s around impeachment or the election election earing things like, Are you allowed to host a candidates forum? Candidates debate. Um, what about promoting issues versus candidates? What do your employees allowed to do? And that’s Ah, that’s what we’ll be covering. We’re gonna

[00:02:38.21] spk_2:
do Jeanne Jeanne! Jeanne! Jeanne! Jeanne! Jeanne de la machine. We got him. Jean Takagi is the managing attorney of Neo,

[00:02:44.28] spk_3:
the non profit and Exempt Organizations Law Group in San Francisco. He edits the wildly popular non profit law block dot com and is the American Bar Association’s 2016 outstanding non

[00:03:02.08] spk_2:
profit lawyer. He’s at G tak. Welcome, Jean Jean. Great. Ah, great to have you. I know you were there, but we were having

[00:03:04.94] spk_3:
trouble getting in. But now we’re now we’re in, You’re in and we’re

[00:03:12.26] spk_2:
in and s so it’s a very communal Wonderful Are you doing out there? Looking forward to holidays? I’m sure

[00:03:15.50] spk_5:
I am. How about you turning

[00:03:17.13] spk_2:
very much? Yeah. I love this

[00:03:18.50] spk_3:
time. Uh, we have a couple of weeks off from the show, and I have nothing scheduled for a couple of weeks. So, uh, it’s

[00:03:25.47] spk_2:
good time, too. I mean, I’ll be working light work light, I guess. And good time.

[00:03:30.99] spk_5:
Same way.

[00:03:31.64] spk_3:
Yes. Excellent. Good for you. And

[00:03:33.71] spk_2:
good time for reflection.

[00:03:38.44] spk_3:
I think on the new year, I like that you have any, uh, any goals for Ah, 20

[00:03:42.73] spk_2:
20 that you want to share or anything exciting coming up in 2020.

[00:03:53.29] spk_5:
Really excited. My partner, Aaron, Brad, Rick and I are going to be teaching a course at Columbia University starting in January, so we’re really looking forward to that in their non profit a management program.

[00:03:59.50] spk_3:
Wonderful is not gonna bring you to New York or you teaching virtually.

[00:04:03.29] spk_5:
We’re teaching online, but we may make out a trip itude in New York

[00:04:07.89] spk_2:
trip or two. But you gotta let me know. Of course.

[00:04:10.12] spk_5:
Absolutely.

[00:04:16.83] spk_3:
I mean, unless you want Oh, yeah. I hope you don’t want to stealth in and stealth out. Not not. Talk to me. I certainly wouldn’t do that if I were visiting San Francisco again.

[00:04:20.94] spk_2:
Um, okay, so let’s start with the most timely.

[00:04:30.74] spk_3:
Um, President Trump was impeached two days ago in the U. S. House of Representatives. Um,

[00:04:31.72] spk_2:
what’s, uh what can we talk about?

[00:04:33.38] spk_3:
If we’re 501 c three around that

[00:04:48.90] spk_5:
Well, it’s a great question and, you know, because they’re different types of 501 see threes and different types of non profit. I should make clear that we’re only talking about public charities here. There’s different rules for different other types of organizations, including private foundations for public charities. There’s quite a lot they can talk about.

[00:04:56.93] spk_2:
OK,

[00:04:57.64] spk_5:
we should also differentiate between impeachment, which has already happened, and the removal from office, which is still going to be a matter of legislative action, specifically a supermajority vote by the Senate whenever they get that before them.

[00:05:11.85] spk_3:
And

[00:05:12.57] spk_5:
I know that’s related issues.

[00:05:16.20] spk_2:
Okay, uh, because there go ahead. Yeah. So Well, why? Why? Why do we

[00:05:21.09] spk_3:
distinguish between those two. This is a big

[00:05:24.51] spk_5:
authority happened,

[00:05:25.38] spk_2:
Yeah,

[00:05:32.43] spk_5:
so because it’s already happened, you know, charity are fairly free to comment on

[00:05:33.34] spk_2:
that action. They’re

[00:06:33.93] spk_5:
also free to comment about how they feel about governmental leaders in doing their jobs. And, you know, it might be really important to do so in the context that it may really impact the charity’s mission. And, you know, for example, I would think that charity to mission is to end hunger, for example, for for American suffering from poverty. They might have a great deal to say about the administration’s rule to end food stands for like about 700,000 people. You know, the 700,000 people are making, on average 2200 and $50 a year. And if you want to comment on that at a charity, that’s okay the same way you can comment on the impeachment whether you think that that was proper or not. But what may not be okay if you’re gonna be talking about the electability of that person for or in any way talking about the upcoming election so you can talk about impeachment in and of itself on dhe. Whether it was, you think it was right or it was improper. But you can’t start to talk about, um, or start to influence the upcoming election. So that’s a little bit of a fine line. Thio. Walk on

[00:06:58.93] spk_3:
okay, and we’ll get to the election and election hearing. What about the coming potential removal from office, The trial in the Senate and, you know, advocating one way or the other for what you think. The Senate, your organization thinks because we’re talking about the organization level, we’ll get. Individual employees will get to that, too. But what your organization thinks about removal from office.

[00:07:14.68] spk_5:
So you know, there’s no absolute guidance from the i. R s on the impeachment of the president. Surprise. But, um, there’s It’s generally thought to be attempting to influence the legislative action inaction by the Senate.

[00:07:26.24] spk_2:
The mall’s

[00:07:51.21] spk_5:
within the tax laws, definition of lobbying and not political campaign intervention. So we know that there’s an absolute bar to, um, you know, endorsing or supporting or opposing candidates for public office. That would be election hearing in that not allowed by any type of 5 23 but public charities are allowed to engage in lobbying so long as it’s considered not substantial, and commenting on a potential legislative action like the removal from office action that will fall before the Senate would be considered lobbying. And to the extent that charity can lobbying and there are some limitations involved, the charity would be free to do so. But again, it has to walk that fine line because we are coming up to an election year on. Dhe has to look like it’s not trying to influence the election itself. So you don’t really want to talk about other candidates for office or on the general overall qualities of Trump as a candidate for another four years. But you want to talk. If you want a charity, you want to talk about the removal from office specifically about what, before the Senate. Why, why would he be removed from from the office? So you’re really took ing taking a look at those two articles of impeachment and commenting on the merits of those articles?

[00:09:02.54] spk_3:
Okay, understand? We need to take our first break when we come back very shortly. We’ll, uh, well, we’ll talk more about lobbying and what’s allowed, not allowed there. And, uh, we’re taking a break for, um, for wegner-C.P.As. Of course, in the new year, might you need a C p. A, whose service is excellent, who provides clear directions and timetables and who’s easy to work

[00:09:10.88] spk_2:
with. That’s not me talking.

[00:09:22.82] spk_3:
That’s from the testimony. Old. That’s not my opinion. That’s, Ah, the opinion of someone who’s worked with not with wegner in the past, a CZ you’ve heard the past few weeks. So if you

[00:09:26.02] spk_2:
do talk

[00:09:39.50] spk_3:
to partner, you eat each tomb. He’s a good guy. No pressure wegner-C.P.As dot com And now let’s go back to Jean Takagi and Impeachment. Say what? Okay, we’re

[00:09:39.89] spk_2:
allowed to do some

[00:09:56.68] spk_3:
lobbying, you said, as long as it’s not substantial. Uh, how do we measure substantiality? Substantial ability. Substantiality substantiality. I think it’s I think that’s what This How do we make whatever helps called Republic

[00:10:33.26] spk_5:
charities there Two ways to measure it? Sort of. The default way is just what the law cost backs and circumstances, and that leaves it up to the Iraq to determine whether you’ve engaged in too much lobbying or not. And if you want to challenge it, ultimately, a court and nobody really wants to go down that route. So, you know, professionals typically uses guidelines. You know, there was this old case that said, you know, 5% of your resource is that should be okay that, you know, anything under 5% should be okay. You want to think about your expenditures, your volunteer time? You know the amount of publication space you’re giving all of those things. If it’s about 5% or less of your resource is you’re probably not too worried about exceeding the lobbying threshold under that backs in circumstances.

[00:10:42.37] spk_3:
Okay, Yeah. 55 percents pretty low.

[00:10:46.35] spk_5:
Yeah, it’s pretty low. Um, but, you know,

[00:10:48.39] spk_3:
for some

[00:11:26.97] spk_5:
organization, that’s all they want to do. But you know, the better choice for the vast majority of charities. And I would say, almost the no brain and choice for charities that are not churches who are ineligible to do this but share other charities that are eligible to make the 5018 lobbying election. I’m. And that that is just a basically 1/2 page born where you put name, address and check a box on it. If you make that election of the charity which could do it any time at all. Um, you get thio, measure your lobbying strictly by your lobbying expenditures, and the limits are just so much more generous.

[00:11:27.98] spk_3:
Okay,

[00:11:28.59] spk_5:
so it’s 20% of your 1st $500,000 of what they call exempt purpose expenditures or mission related expended

[00:11:36.12] spk_3:
choker.

[00:11:36.75] spk_5:
20% of that

[00:11:40.62] spk_3:
100 $100,000 right there and it’s it’s deemed non substantial.

[00:11:46.76] spk_5:
Yeah, yeah, And there’s a separate limit for grassroots lobbying, which is lobbying a different type of lobbying, where you’re not going straight to a legislative body or an employee or member of the legislative body. But you’re going to the public and you’re asking them to contact a member of the legislative body and you have a called action included in that. So if it’s grassroots lobbying, it’s 25% of that total lobbing limit.

[00:12:11.99] spk_3:
But

[00:12:51.64] spk_5:
expenditure limits under Bible one h are much, much more generous than that 5% kind of rule of thumb that we look at the other time again. Um, a big, big tip for any public charity that wants to, um, discuss the removal from from office, um, stay positions on that before it gets to the Senate or wallets in the Senate, the 501 each election could made and be made any time. And it will be effective for the year. And would you make the election? If you decide you don’t want to, you know, continue electing it. Which might be the case for super big charities. Um, where the 5% could actually be, You know, a lot of money you could, you know, revoke your election that anytime after as well by just filing the same form and checking a different box. So a no brainer election for most public charity.

[00:13:00.35] spk_2:
Okay. Okay. So and we’ve talked

[00:13:15.52] spk_3:
about this before. I was probably the April 2016 which was the last election year. Um, you and I talked about advocacy generally, and I think the 501 h came up then. So you’re still a five. A one c three. You’re just making this 501 h election for the year.

[00:13:23.94] spk_5:
Right? So

[00:13:24.75] spk_2:
what do you

[00:13:25.08] spk_5:
make it?

[00:13:25.49] spk_2:
Your sort

[00:13:26.16] spk_5:
of permanently on that until you revoke it. But all it does that 501 age super easy election to make this thing. We don’t want to tell the IRS everything about our lobby. We just want the IRS to measure our lobbying on what was spent. We don’t want to try to estimate volunteer time How much of our office space is dedicated to lobby? We just want to tell them exactly what we spent and recorded on our financial for a lot. So, so much easier to report, so much easier to track. The limits are much easier. And if you violate it, if you go over the lobbying limits without the election, that facts and circumstances test.

[00:14:00.03] spk_3:
Yeah,

[00:14:00.37] spk_5:
you violated in any one year, you can lose your Bible. One secret that

[00:14:04.58] spk_3:
Okay,

[00:14:04.93] spk_5:
But if you make the election, you have to violate it over a four year period, not just one year, but over a four year rolling calendar. And then you have violated by more than 50%.

[00:14:16.61] spk_3:
Wow. Okay, so that

[00:14:18.03] spk_5:
that’s just so much more advantageous.

[00:14:39.09] spk_3:
It is sort of a no brainer. And for those much generous, much more generous limits. Okay, cool. All right. 501 inch. Thank you, G. Um, what about our our individual employees? What are in terms of what resource is they’re using when they speak, when they when they speak publicly? What? What are the rules around employees?

[00:15:56.92] spk_5:
Well, you know, first thing to recognize is is individual tax First Amendment rights, right? So they have the freedom of speech. They have the freedom to say whatever they want. Charities shouldn’t control what you know their employees or their directors or officers are saying in their individual capacity. But they should control what they’re saying as representative speaking on behalf of the charities. So there’s that distinction to make so again don’t control what you know your your employees and your staff members and volunteers are saying about impeachment or removal or any other wegner slate of action or political endorsement. But make sure that they don’t use any charity. Resource is in doing so, and that’s really important. Don’t let them use their work email address. Don’t let them use the work. Tell a boat. Don’t let them perform those activities. If they’re, they’re, you know, working on campaigns in the office and the charity’s office. And if they should put their name on with the name of their employer, which is a charity on like an endorsement list of a political candidate. Make sure that there’s some sort of Astra’s back says that the name of their employer is only listed there for identification purposes and doesn’t represent an endorsement by the charity itself.

[00:16:22.14] spk_3:
Okay, Okay. Um and so what? What employees do on there personal time and their personal Facebook Twitter email all all, uh, really of no concern to the to the charity.

[00:16:28.54] spk_5:
Yeah, but social media is actually a good point about hitting that gray area, tony, because you probably follow your twitter, tony. So you

[00:16:37.06] spk_2:
probably follow you

[00:16:42.79] spk_5:
individuals who are on Twitter who have both their name and their charity affiliation like listed?

[00:16:46.34] spk_2:
Yeah, in

[00:16:55.29] spk_5:
their account, it might be in their Twitter handle, or it might be in their short bio underneath. You know, the Twitter handle. And that’s where it becomes kind of tricky. Who does that Twitter handle belong to? Does it belong to the individual or doesn’t belong to the charity And could the chair to get in trouble if there is a political endorsement or a statement of opposition to a candidate for public office?

[00:17:12.21] spk_2:
Yeah, I always

[00:18:04.09] spk_3:
have presumed. Although I’ve never followed upto see whether my presumption is, uh is accurate that someone who has the charity name in there either in their handle or, as you say in their short Twitter bio, has another account that doesn’t talk about the charity, Asai said. I never have investigated to see whether they do or not. I’m following their charity account. Um, so maybe maybe people don’t. But that would seem like the better the better practice. And especially if, I mean, shouldn’t that be in a, ah charities social media policy that if you’re going to use the charity name, you know, there are prohibitions around what you can do with that and then and we encourage you? Or we insist that you have, ah, private well non A non charity Twitter account for all other all other non work purposes.

[00:18:56.44] spk_5:
Yeah, conservatively. You know, I kind of like that type of policy, tony. But for practical purposes, it’s kind of like our president or or Hillary Clinton when she was running, separating their kind of personal accounts from their work account. Um, there they are co mingled all the time, and not just by charities and their employees, but by four profit in their employees, so disclaimers can work outright prohibitions and requirements that they have a separate, Um, a Twitter account or face social media account may be helpful at times, but often times you know they’re just going to combine the two. So, um, just be careful about that one thing about, you know, sort of the election hearing prohibition that you can’t endorse or oppose the political candidate. One thing did note is that the Republican Party platform and President Trump himself said they really don’t like that Prohibition often referred to as the Johnson

[00:19:14.09] spk_3:
and Johnson

[00:19:14.70] spk_5:
talked about that before.

[00:19:16.87] spk_2:
Well, they

[00:19:17.05] spk_5:
want to get rid of it, although most the vast majority of charities. And I think the mast majority of churches. I don’t want to get rid of it because I could turn all charities into these election vehicles for where donors say, You know, I’m not gonna give you this donation unless he said a message to all of your members and donors of, you know, in support of a political candidate, and that would suddenly be okay.

[00:20:05.12] spk_3:
Yeah, that’s we’ve been talking. We talked about that. Probably when it around the time it first became a proposal, or at least well, I guess it’s been in the platform. The party platform, you’re saying. But there was some There was more talk about it, I don’t know. A year and 1/2 for two years ago, and we, you and I discussed the Johnson Amendment. Um, it hasn’t happened. Maybe because of the nonprofit community opposition. What what’s your scent? You were you were monitoring that very closely. What’s your sense of where it stands?

[00:20:57.67] spk_5:
Yeah, you know, I think the non profit community’s opposition was very, very helpful in that there were there were others who were opposing it. A CZ well, with a matter of policy. And I think as people got more educated about it, it became less and less popular. Um, it was a way for dark money. T sort of enter into the political system where we didn’t really know where the sources were in. People were getting tax deductions on top of it. So it’s something that be really bad. But the reason why I brought it up here is because if an organization wasn’t quite sure, it was speaking out on impeachment or removal from office, and you know we may be crossing that line. Well, conservatively, I would say, Yeah, the closer we are to election time, you’ve got to be careful even within the bounds that I said that it might be a lobbying activity and not, uh uh, banned political campaign activity. But closer do you are to election that could turn into what looks like a political campaign activity. If you’ve never spoken about the impeachment itself, and you just never it looks like your charity was never interested in the issue until just like, you know, a few months before the election with the

[00:21:25.32] spk_2:
happened that

[00:21:48.92] spk_5:
looks like this casted election hearing communication. But overall, I’m not sure that the I. R s and the current executive branch is really that interested in enforcing the political prohibition laws because, you know, doesn’t resonate with what their messaging has been. Maybe a little bit risk. And it would have been for four years ago.

[00:21:49.85] spk_2:
Okay? Yeah. You still

[00:21:56.54] spk_3:
want to err on the side of caution, right? I mean, I, you know, because they there could be some exception to their enforcement activity or priorities or something. So but

[00:22:01.99] spk_2:
you’re you’re the

[00:22:11.33] spk_3:
conservative conservative guy, at least in terms of legal legal advice of the legal advice side. You know, um, least that’s Yeah,

[00:22:13.26] spk_2:
that’s always been your You. You’ve always been cautious

[00:22:15.77] spk_3:
about advice you give. Yeah,

[00:22:41.47] spk_5:
Yeah, I think when we have a lot of smaller to medium sized organizations amongst the client, there’s just less risk capital, you know, private foundation with, you know, $10 billion might have a little bit Arjun for taking a risk and maybe fighting it in court if they felt like the I r s sir. Uh, neutrino general not correct in their interpretation of whether a lot was violated. But for most small and medium sized charities, they can’t afford to have that battle.

[00:22:49.70] spk_2:
We’ve been

[00:23:15.61] spk_3:
talking mostly about candidates. You mentioned a little bit about issues, but let’s make issues issues clearer versus candidates. Are you saying that if you’re non profit now, as an organization has has been following an issue for a long time and not just doesn’t just start commenting, you know, 60 or 90 days before an election, then eyes that part of the facts and circumstances test for people who don’t for organizations that don’t take the 501 h election. Is that Is that one factor?

[00:24:01.94] spk_5:
Well, just commenting on issues themselves, it was If it isn’t stating a position on a piece of legislation, you’re free to do that all you want. So if you’re educating the public about a particular issue, whether it be climate change or, um, you know, immigration, um, you couldn’t talk about broader issues and educate the public. You know, if you’re giving material facts and you’re doing it in a non part of objective and fair manner, that that should be sort of a fundamental thing of what you do if it’s gonna help further your mission. But when you start to comment on a particular piece of law or legislation and say, you know, this is either a good piece of legislation or this is a bad piece of legislation

[00:24:11.27] spk_3:
or this

[00:24:11.70] spk_5:
new legislation that we need now you’re entering into the realm of lobbying and subject to those limits that we just discussed the 501 h limits or the the facts and circumstances with

[00:24:26.22] spk_4:
Okay. Okay. Um,

[00:24:28.72] spk_2:
you still there, June? I am okay. Yeah. You

[00:24:41.39] spk_3:
Ah ah, word or a syllable at a time seems to pop out, and then it got quiet. So I I, uh I got concerned. Okay, You’re still with us. All right. Good. Um, thank you for flushing that out.

[00:24:43.22] spk_2:
What else? What else

[00:24:44.49] spk_3:
do you think listeners need to know?

[00:26:06.27] spk_5:
Well, there are all sorts of other things that public charities do around election time. Um, you know, they can’t endorsers support any candidates for public office, But the concert, we engage in voter registration and get out the boat drives. You see that all over the place, and you’re gonna continue to see it over the next year. So a CZ longer again there, you know, conducted in the neutral, non partisan matter without reference to, you know, any of the specific candidates or political parties, you can host a candidate debate or forum. I think many of you have seen those, uh, you know, hosted by a public charity. And again, the purpose of the, uh, debates reform should be for educating the public. So you have to be very careful about not doing it in a partisan man is not with leading questions or a selective choice of topics that that might influence the public one way or the other. Be careful about your selection of moderators and how you comment on the candidate’s response. Yes, I want to be careful about the time allotted to each candidate. You know, it would be very wrong if you allowed just one candidate. If there is, it just came down to the presidential race, for example, and you let one party’s candidates speak for 90% of the time and the other candidates to be 10% of the time. It will be pretty clear where that charity is leaning.

[00:26:28.95] spk_3:
Okay, So to borrow the old Fox News motto, you need to be fair and balanced, but not fair and balanced like they were where a court ruled that they were de facto, not fair and balanced. Need to be really fair and balance. I think

[00:26:29.39] spk_5:
that’s that’s right,

[00:26:30.53] spk_2:
and and

[00:26:35.50] spk_5:
obviously a charity will have its own mission statement to think about. But they’ve got a sort of put it in their back pocket a little bit when they’re designing those type of debates. Reformed Also, voter guides, Kennedy questionnaires, um, also permissible and even candidate appearances. If you’re providing equal opportunity for all candidates, you see that on television is Wow.

[00:27:05.64] spk_3:
Okay. Okay. Um well, we have just about a minute or so left. Uh, what? Ah, what do you want to leave us with for the for the year on this topic?

[00:27:17.93] spk_5:
Well, I think I’ll just say I think people should be really active in their advocacy. In furtherance of their mission. There are a few resources that are out there. Board sources stand for your mission. Campaign has some excellent resource is on the Alliance for Justice gives you more than mechanics of what I’ve been talking about. What type of advocacy, What type of lobbying, what type of political activities public charities could do on. There’s some nuances to all of this. There’s another layer of election law that may be on top of all of the tax law we’ve been talking about. So those resources are good places to go and go ahead and advocate as much as you can for your mission.

[00:27:58.17] spk_3:
Junior. So modest. Another very good source is non profit law blawg, which is at non profit law blogged dot com. And Jeanne, I wish you lots of

[00:28:01.34] spk_2:
let’s of enjoyment, lots of good time.

[00:28:03.07] spk_4:
Uh, I

[00:28:03.64] spk_3:
hope you enjoy your holidays and the New Year

[00:28:07.14] spk_5:
Happy holidays to you and your family. Tony,

[00:28:28.89] spk_3:
thank you very much, Gene. It’s a pleasure. And thank you so much for what you’ve done for 2019 and what we’re looking forward to. In 2020 he’s Jean Takagi, my pleasure, managing attorney of Neo, the non profit and Exempt Organizations Law group. He edits that non profit log log, and he’s at G Tak. Now it’s time for a

[00:28:33.08] spk_2:
break. Cougar Mountain software designed from the bottom up for nonprofits The same nonprofits we’ve been talking about, the ones, the ones we all know. Non profit radio, for God’s sake. What does that mean For you?

[00:29:00.64] spk_3:
That means fund accounting. No more spreadsheets to manage your restricted grant funds. Also fraud prevention and exceptional customer service. You’ve heard all that in the testimonials. Cougar Mountain has a free 60 day trial on the listener landing page at tony-dot-M.A.-slash-Pursuant. Now let’s transition,

[00:29:03.15] spk_4:
uh,

[00:29:03.88] spk_2:
subtly, but ah, but smoothly, uh, suddenly and

[00:29:27.75] spk_3:
smoothly to tony stick to and my thanks for you. Our listener. Listeners in 2019 were the number one podcast for nonprofits. Most listened to, uh, most longest running, most consistently produced, most sponsored just generically. Overall, you can say Number one podcast for nonprofits. And

[00:29:35.00] spk_2:
that’s because we have so many listeners. So I am grateful

[00:29:49.24] spk_3:
to you. Thank you for your listening If you have shared the show. I appreciate that as well. Thank you for that. That’s how we grow the audiences by listeners sharing what? What

[00:29:49.94] spk_2:
they believe is good content. So thank you with you. Listen, live or archive.

[00:29:54.54] spk_4:
It

[00:30:13.47] spk_3:
makes no difference. Thank you very much for listening. If you want to see my thank you wishes from the Chesapeake Bay, then you can view the video at my thank you video. Thank you so much. We

[00:30:13.61] spk_2:
have a B sample ward. We do not have

[00:30:55.80] spk_3:
any sample word. She hasn’t called into the conference line yet. Okay, well, uh, when when we do connect with her, um, we will be talking about save dot org’s. The issue is that the dot org’s domain that we all use I don’t use you all use. I actually don’t use I’m dot com for my for my business. Um, but you all use it. You know how important it is. There’s the potential that it will be managed by, ah company ethos, which is the water, you know, you may know ethos water. Um, that’s the company that may gain control of the dot or domain. And Amy and I will talk about how these things are all managed. Um, we

[00:31:03.55] spk_2:
have Amy as Amy called in yet

[00:31:40.84] spk_3:
means not. Okay, So what we’re gonna do is, um Let’s do the live listener. Love will do that. And if you will give me a nen dull Jin ce for a few seconds, I’m gonna get my phone and share with Emily. Amy sample Ward’s contact info so that Emily can text and call Amy. So hang on while I get my phone. Okay? The dreaded dead airtime.

[00:31:43.74] spk_2:
But I told

[00:32:11.54] spk_3:
you was coming. So, uh, you had you had time to prepare, so it should not have been dreadful. Uh, for you, So I’m getting her in my pulling up in my contacts. Okay, Emily, Here you go. There’s the ways to contact Amy. Sample word. Please Do use my phone actually, or whatever you want to use. All right, so we’ll be talking about dot Organ. There’s a movement. Does The hashtag is saved dot or Ge? Well, I’m only works

[00:32:29.19] spk_2:
on that. Let’s do the lifeless in love and it is extensive. My gosh, Um let’s go abroad first. Tokyo, Japan! Oh, konnichi wa Ramat Gone Israel! Welcome, Live! Listen, love to Israel as well as Japan. Gwangju, South Korea. You’ve

[00:32:35.28] spk_3:
been with us before. Gwangju. Thank you so much. Seoul, South Korea as well. Um

[00:32:41.53] spk_2:
Brazil. Mina Mina Gerais meant Minas Gerais. Jakarta, Indonesia,

[00:32:42.64] spk_3:
Capital of Indonesia, of

[00:33:07.84] spk_2:
course. Live! Listen, love Thio. Each of our foreign listeners and they continue coaching men city in Vietnam. And, uh, well, we see Vietnam from time to time. Thank you. Live low about to Vietnam and touch skin sherry in Uzbekistan. Yeah, it was Pakistan. Not too often, but we’ve heard from you before. So very glad. Very glad you’re with us. Who’s Becca? Stan? Vietnam, Indonesia, Brazil, South Korea, Israel, Japan.

[00:33:20.68] spk_3:
Multiple. South Korea, of course. Want credit that live? Listen, love. After each of those, uh, countries and coming abroad, we’ve got, um Brooklyn, New

[00:33:24.94] spk_2:
York, Cheyney State Park, Kansas. That’s interesting. Cheyney State Park. Are you actually in the state park? You can, uh that’s interesting. You listening from the State Park. Wonderful. I’m a very

[00:33:43.26] spk_3:
big advocate of state parks. Public lands. You got it. You gotta have park. That used to be the motto in New York City, but it applies throughout the country. Doesn’t matter. Of course you gotta have park green space. Um,

[00:33:49.29] spk_2:
Ashburn, Virginia. San Francisco, California, Tampa, Florida, Fairfield, Connecticut. Live love everywhere. We’ve got her. Okay, well, on the heels of the live love Let’s see now we got to make her wait,

[00:33:55.85] spk_3:
because there’s no way that I’m doing a lot of love without the podcast pleasantry. So now she’s gonna

[00:33:59.60] spk_2:
have to wait. She called in late. It’s our own fault. Um, the podcast pleasantries are over 13,000 listeners.

[00:34:06.65] spk_3:
You heard me say it on Tony’s Take Two. But

[00:34:09.17] spk_2:
I’m grateful. Thank you so

[00:34:10.49] spk_3:
much for being a part of our listener audience. The podcast listeners. Thank you.

[00:34:23.20] spk_2:
Any sample Ward. She’s our social media and technology contributor and the CEO of N 10. Her most recent co authored book is social change Anytime, everywhere

[00:34:26.74] spk_3:
about online multi channel engagement. She’s

[00:34:32.63] spk_2:
that amy sample ward dot org’s oh dot org’s. This is considered a potential personal personal threat dot ord and she’s at a me RS ward. Any sample ward. Welcome back.

[00:34:53.87] spk_0:
Thank you. I’m not sure what happened. I’ve been trying since, like, 10 20 to get in. And I assume I always assume user error trying to re dial, and it never let me in.

[00:34:57.38] spk_2:
Okay, Well, we had the same trouble

[00:34:58.91] spk_3:
here, actually trying to connect with Jean Takagi. We saw that he was in the conference system, but we couldn’t get in ourselves to connect with him so on. And so it’s probably not user error times, too. There’s something flunky.

[00:35:12.16] spk_2:
And the reason we’re using

[00:35:21.69] spk_3:
this conference system and rather than having you call the studio directly, which we almost always do, is because there’s some problem with the with

[00:35:21.81] spk_2:
the phone line. Four lines? Yeah.

[00:35:23.94] spk_3:
So we’re using the conference line. Of course, we need the phone line to get the company line, But

[00:35:33.87] spk_2:
anyway, well, you’re a technology technologist, our technology contributor. It’s wonderful until it fails. I mean, I’m almost I’m almost sorry for saying this. I do apologizing. That was gratified that you have trouble with technology too.

[00:35:43.21] spk_0:
Oh, don’t worry. People are always so happy when an 10

[00:35:46.72] spk_2:
says that something

[00:35:48.02] spk_0:
that happened because it’s so validating.

[00:35:51.43] spk_2:
You

[00:36:22.00] spk_0:
know, it happens to all of us, because at the end of the day, all these tools, they’re just tools, right? They’re not perfect systems. Humans built all of them and humans that themselves. They’re not perfect. So things are bound to happen. But I think it’s really interesting the way folks respond when something, you know, technological is happening. That is not what they want. You know, the folks who get really frustrated and upset, and it’s like, Well, sure, But you know, how far is that getting

[00:36:23.35] spk_2:
you

[00:36:24.02] spk_0:
or the folks who are like, Oh, I’m gonna you know, like MacGyver my way around, just like you all did. So good. Good for you for having a productive response,

[00:36:34.73] spk_2:
Thank you very much. And for you as well.

[00:36:36.44] spk_3:
You kept trying. And, uh, I could I could imagine that your frustration was growing as 10 30 Pacific time came and went, which is the time I I was expecting your call. I can imagine your heart rate was rising blood pressure as well. But you

[00:36:51.11] spk_2:
mean I mean,

[00:36:51.78] spk_0:
what could you know? I usually like to dial in early and listen.

[00:36:54.52] spk_3:
Yes.

[00:36:55.08] spk_0:
And so I tried. But

[00:36:57.23] spk_2:
you know, to know about it

[00:37:00.06] spk_0:
anyway, here I am.

[00:37:04.26] spk_2:
Indeed, let’s talk about save dot or ge I While we were waiting

[00:37:06.00] spk_3:
for you, I was introducing the topic. I explained the listeners that there’s the potential that the dot org’s domain could be managed by a private company

[00:37:20.46] spk_2:
ethos My saying that right? Or they are ethos right ethos. Okay, which is the water that they’re also there? I think

[00:37:25.44] spk_3:
they’re best known for water. At least that’s the way I know them. Their social.

[00:37:26.07] spk_2:
No, they’re

[00:37:26.36] spk_0:
brand new, so I don’t think they’re best known for anything.

[00:37:29.42] spk_3:
Oh, listen to the oh, we’re

[00:37:37.08] spk_2:
already getting. They’re already getting some attitude about this subject. All right there, Brandon. E. Hear it? I heard the tone. I know you. I heard that tone. All right, so this is not the ethos water company,

[00:37:42.12] spk_0:
brand new

[00:37:42.83] spk_2:
private

[00:37:43.21] spk_0:
equity firm.

[00:37:43.81] spk_2:
Okay. Oh, brand new

[00:37:45.14] spk_3:
private equity firm. Okay. I didn’t know it was brand new. I just kept seeing equity from All right. So

[00:37:49.39] spk_2:
let’s introduce, I think to get our way into this, we need to understand how

[00:37:54.06] spk_3:
this domain the dot org’s domain is managed. I mean, and I know you’ll be right. I know you’ll be judicious about acronyms because you don’t want to end up in jargon jail S o, I

[00:38:05.01] spk_2:
think. But I think it helps to understand how this

[00:38:07.05] spk_3:
thing this dot org’s is managed.

[00:38:13.47] spk_0:
Right. Okay, so I’m going to try and explain in some somewhat basic terms.

[00:38:18.47] spk_2:
Okay, But then

[00:38:22.62] spk_0:
I will rely on you to interject questions or fast forward or pause, you know, as I go.

[00:38:26.84] spk_3:
Okay.

[00:39:42.59] spk_0:
Okay. So the internet, everyone listening has used it. I’s probably using it to listen even And we know that website, You know, we don’t just write non profit radio. We write non profit radio dot whatever, and the part of the website that comes at the dot whatever follows is called a top level domain. So there cannot. We can’t just go make one up. Those top level domains are managed, and there’s only so many of them. And I can they use the acronym I can as their name, which stands for Internet Corporation for assigned names and numbers. There you can kind of think about them is like the body that’s mento. Organize the Internet, So they’re the ones that say OK, you know, we’re allowed to use dot com and dot or GE and dot I owe and dot. Whatever else, they’re kind of the keepers of the order. So they are involved in olive ist as those keepers of the order. Okay, The next group we need to talk about is the Internet society that is a nonprofit organization, and their mission is essentially to promote a globally connected and trustworthy Internet.

[00:39:48.31] spk_3:
Okay, listeners may see the acronym I s O. C, right. Let’s

[00:39:54.36] spk_2:
have the night knock Internet society yet.

[00:40:31.46] spk_0:
So, almost 20 years ago there, when I can waas working to continue their their work and managing those top level domains, uh, they bid tohave the contract for the dot org’s domain. And there was a lot of conversation about the value of a non profit managing the top level domain that’s essentially four non profit right instead of a four profit domain registrar.

[00:40:36.01] spk_2:
So I can I can is itself a non profit. Yes, okay.

[00:42:38.49] spk_0:
And Internet society is non profit, and they they won the dot or contract, and in the process of that, created another non profit called public interest registry PR, which would be the organization that owned the contract and operationally managed it. But P I. R. Was connected to Internet society, so Internet Society was choosing the board for P i. R. And revenue kickbacks went to Internet society, that kind of thing. So there very closely related as organizations. You No one is like the owner of the other. And for the last, like 18 years or so, PR has managed the dot or domain, and their work has included managing that. Making sure that there’s, um, resource is for non profit. They have they have, you know, everything from sponsoring events to funding training programs, Thio investing in research about, you know, the way non prophecies, the Internet. They’ve done lots of things to kind of re invest the money they make into the use of the Internet by non profit, and everyone kind of thought things were fine. Who write things are moving along just fine, and last month’s just over a month ago from today. All of a sudden, there was an announcement from Andrewsullivan, the executive director of the Internet Society, that they we’re going to sell P. I r to a private equity firm and that it was essentially great news because Internet society would get so much money from the sale that they would create an endowment for themselves. That was kind of position is the only the good news about this was because it would just be so much money for them.

[00:42:44.95] spk_2:
Okay, that was that. That was obviously early day.

[00:42:48.45] spk_3:
That was early day, because I in my research, I didn’t find I didn’t even find that anymore. So that that

[00:42:54.27] spk_2:
must have been that their first position. I’ll tell you what. We got to take our

[00:42:56.90] spk_3:
break, Theo. Only one we need to take. And then you and I can continue to invest the show. Okay. Thank you. Um,

[00:43:04.35] spk_2:
have you ever wondered why some nonprofits

[00:43:13.42] spk_3:
are always mentioned in the news? It’s because they work to build relationships with journalists who matter to them. Turn to communications can help you do just that. They are themselves former journalists. They specialize in helping nonprofits build meaningful media relationships that lead to great coverage.

[00:43:29.45] spk_2:
It’s all about the relationships almost in life. What isn’t There are turn hyphen

[00:43:41.49] spk_3:
to dot ceo, all right. And we have but loads more time for Amy Sample Ward and save dot org’s. Okay, So the initial justification for this well, it’s not really much of a initial rationale. It’s not even it didn’t even didn’t even bother with justification. Just initial rationale was this will be good for I sock will make a lot of money by selling P I R.

[00:43:53.80] spk_0:
Yep.

[00:43:54.31] spk_3:
Okay,

[00:43:59.51] spk_0:
which of course, uh, raise a lot of questions.

[00:44:02.12] spk_2:
A lot of black people.

[00:44:32.91] spk_0:
And now the second piece that we need to talk about happened months before this announcement. So back in the early spring, the contract details for the dot or contract were up for renegotiation with I can and a few things happened in that renegotiation that already have the community kind of in critical response. Those things included some changes to what had, for a long time been part of the contract. One of those was taking away the price cats, so prices could be set at whatever was desired.

[00:44:45.21] spk_2:
The price for

[00:44:47.40] spk_3:
a dot org’s domain is very low, right?

[00:44:50.79] spk_0:
It’s about $10

[00:44:52.71] spk_3:
$10 for the year. Okay,

[00:44:54.88] spk_2:
Okay, you’re more acquainted

[00:44:56.72] spk_3:
with this and I am because I don’t use dot org’s I love Dot or GQ. You know, I make my living at dot org’s, but I don’t I don’t use it personally, All right? So, yeah, it’s $10 a year. Okay, so they’re So the initial conversation about a contract renewal was take away those takeaway a price cap,

[00:45:23.25] spk_0:
take away the price cap, and then some other pieces that essentially made folks feel that it could be organizations with these domains. There’s some vulnerabilities around censorship and that kind of thing.

[00:45:30.91] spk_2:
Okay, So a

[00:45:31.79] spk_0:
number of organizations

[00:45:33.22] spk_2:
and

[00:46:04.28] spk_0:
people had responded to those changes back in the summer and spring saying, you know, Hey, wait a second. This is not right. This does not feel right. This is, you know, longstanding components of the contract. Why’re these Chicken Jane? And despite overwhelming over 3000 responses saying don’t do this, I can. And public interest registry went ahead and the contract gotta prove that way.

[00:46:05.26] spk_3:
Ok, wasn’t I? Sock, actually, isn’t I Sock?

[00:46:09.57] spk_0:
I can

[00:46:10.46] spk_2:
I can. Okay, but I stock

[00:46:12.67] spk_3:
owns public interest registry, right?

[00:46:15.88] spk_0:
Sure. But public interest registry is kind of the manager there. The owner of the contract.

[00:46:21.62] spk_3:
Ok, ok, and they’re the ones who managed the managed. OK, all right, So now

[00:46:43.06] spk_0:
and what is kind of an added so we can think about it as there’s all of these changes happening? And then, isn’t it so convenient that now a private equity firm is willing to pay over a $1,000,000,000 for this contract that no longer includes price caps and includes some vulnerabilities around?

[00:46:50.72] spk_2:
Wait. Oh, I hold on. I didn’t see that. The price tag is over a $1,000,000,000.

[00:46:57.22] spk_0:
$1.12 billion.

[00:47:11.85] spk_2:
Wow. Okay, I did not see that. I was I was wondering, but I hope she’s okay. So All right, so the question All right, So let’s let’s fast forward now. You aren’t

[00:47:20.74] spk_0:
even following who don’t. Maybe you don’t even work in a non profit that has a doubt or domain. You can already see from, like a, you know, business magazine perspective. What? What seems questionable about the situation?

[00:47:29.30] spk_2:
How the hell are they? How the hell is going to make all that money back, right? Yes. On the backs of

[00:47:34.24] spk_3:
America’s 1.3 million charities.

[00:47:37.88] spk_0:
Well, and keep in mind, this is for the entire globe. this is non profit over the entire

[00:47:43.35] spk_2:
world way. Talk

[00:47:49.38] spk_0:
about wanting to have a human rights lens on reviewing this transaction. When we talk about vulnerabilities for censorship, we’re thinking about non profit, not necessarily in the U. S. We’re thinking about non profit in parts of the world where they rely on a dot or domain so that people here in the U. S. No. Oh, this must be a new organization doing good work. I’m willing to donate to them. I’m willing to support them. They’re likely doing work in a geographic region where their government is not in support of what they’re doing right. And having vulnerabilities for censorship means their government could just turn their website off. Right?

[00:48:28.27] spk_2:
So,

[00:49:21.43] spk_0:
uh, there’s a lot happening that is sure maybe not happening in this moment, but very, very likely could happen, right, because these changes have happened. So, um, what has also been challenging is that in a few of these public forums and 10 held a community call and invited the folks from Internet society and PR to come. And John Nevins said that he asked for those changes to be added into the contract, which kind of further creates this web of questioning about who knew this was happening. And how long was this plan, right? If those changes to the contract are what made the contract worth apparently over a $1,000,000,000 how did all of this happen?

[00:49:23.63] spk_2:
Did you have someone from ethos on the call?

[00:49:30.23] spk_0:
We did Eric Brooks, That Theo.

[00:49:50.31] spk_3:
Okay. And he has, uh, yes, I wanna be. I wanna be balanced here because he has a block post that from December 16th where he answers some of the answers, all the questions that a Mozilla Block post had had asked

[00:49:57.17] spk_0:
Answer some of those questions and I would say responded to them. Did not answer them,

[00:50:29.66] spk_3:
You would say responded. Okay, okay. So, like, for instance, on the pricing, um, what assurances gonna dot Or community have that ethos and p i r will keep their promises regarding price increases. We’re committed to limit increases for dot, or domain registrations prices to no more than 10% per year on average, based on domain prices today, that would equate to an additional $1 per year. We plan to embed these pricing commitments in our public benefit LLC or other corporate governing documents that that doesn’t care. Is that not satisfactory?

[00:50:43.24] spk_0:
No, I mean on average. So that could say, over the next 20 years, the average has been 10%. We all understand that Average doesn’t mean every year has to be.

[00:51:05.50] spk_3:
Yes. Okay. Okay. Now Eric says that they are Ah, they’re going to create a P I R. Stewardship Council. Right now, The Stewardship Council, um, concept behind our proposal is to put in place a dot org’s community advisory board body. The council will seek input from the daughter of community and convey the needs of the data or community to P i R. Management provide advice to p ay, our leadership on key matters impacting the daughter of community. And the leading voice in recommending new service is capabilities to be offered through the dot org’s platform to serve the mission driven community.

[00:51:29.44] spk_0:
Yeah,

[00:51:31.06] spk_3:
okay. What? You know,

[00:52:33.02] spk_0:
they had a, uh webinar. I guess you’d call it yesterday. So did and spoke at more length. It wasn’t a discussion or, you know, they didn’t take live questions or anything like that. But they spoke at more length about the same topics. And what we can understand about this advisory council is that the P. I. R. Board and the folks already working there working within this deal will choose who the council is. The council has no actual authority. Oh, our mechanisms for accountability. And, you know, it’s like a group that they have chosen that they say is able to give be back. So I don’t see how it addresses any of the kind of concerns that rest of the dot or community has for riel accountability.

[00:52:35.39] spk_3:
Okay, so your concern is that it would just be like an advisory board on sort of perfunctory and not not without really thought without authority. The authority would

[00:52:48.12] spk_2:
still be may not

[00:52:52.65] spk_0:
be folks who would have divers or critical views because their hand selected.

[00:52:57.75] spk_2:
Okay, well, hey, did say

[00:53:09.60] spk_3:
again Eric Brooks in his block post. He said that there would be standards for qualifications for membership on the stewardship Council. So

[00:53:10.65] spk_0:
sure,

[00:53:11.40] spk_2:
they would think

[00:53:12.31] spk_0:
that’s a pretty like white, dominant view of saying I’m gonna choose my friends.

[00:53:31.50] spk_3:
Yeah. Okay. Yeah, because, Well, yeah, The question is whether the dot or community would have input into, I guess I guess we’re talking about. Enter the terms of this disagreement between ethos and I saw. Right,

[00:53:32.83] spk_0:
Right. So we’re moving from a world where the dot or contract is managed by a non profit organization who would also managed by a non profit er organization and into a world where the dot or contract is held by a for profit entity owned by a private equity firm.

[00:53:50.69] spk_2:
Do it right. Just the principles

[00:54:02.33] spk_0:
of those organizational set up completely changes the context in which the dot or contract is maintained. Right? We’re going from a non profit entity reinvesting any additional funds back into the sector to two organizations that are really meant to maximize profit. Right?

[00:54:18.87] spk_3:
I understand. I do understand. And this falls into the category of I I’ve noticed this more in the past 10 years or so. We

[00:54:23.50] spk_2:
have to I feel like I have to fight Maur for what I did to keep status quo.

[00:54:28.65] spk_4:
Um

[00:54:29.74] spk_0:
Yep.

[00:54:32.60] spk_3:
So this is something that all

[00:54:32.93] spk_0:
right, let alone progress.

[00:54:37.08] spk_2:
But yeah, I’m just I’m just Internet

[00:54:54.29] spk_0:
society. Didn’t feel that it was sustainable to manage PR PR didn’t feel like it was manageable. Thio sustain the dot or contract there’s a different solution to that than completely, you know, throwing it out.

[00:54:56.36] spk_3:
I understand. All right. I’m

[00:54:57.40] spk_2:
gonna let us go

[00:54:57.93] spk_3:
a little longer. We are. Typically, we would end right about now, but let’s let’s go another few minutes. Not not not 10 minutes. Because listeners are pretty much counting on on our but, you know, really go another 45 minutes.

[00:55:09.79] spk_2:
Do we know how much

[00:55:12.26] spk_3:
revenue P I R earns? I don’t know. Over the

[00:55:16.01] spk_2:
past years, Annual 19 nineties

[00:55:18.24] spk_0:
and that kind of thing.

[00:55:20.44] spk_2:
Okay, what do you know?

[00:55:21.19] spk_0:
It’s like 90 year.

[00:55:24.12] spk_3:
90 year? Okay. And you’re saying that the contract price is 1.1 billion?

[00:55:30.09] spk_0:
Correct.

[00:55:40.30] spk_3:
Okay. It takes a long time at night at the rate of 90 year to earn back 1.1 billion. And then it’s a venture profit. It’s a venture capital firm. Well, Fletcher, profit venture capital firm, which is a which is a profit profit firm,

[00:55:46.59] spk_2:
that it would be a long

[00:55:47.44] spk_0:
time if you had price caps.

[00:56:00.20] spk_3:
Yes, but there may be other methods, you know, we’re not, you know, we’re not venture capitalists, so I guess you know it comes with a healthy dose of suspicion, not just skepticism,

[00:56:02.04] spk_2:
but I mean challenge. There’s

[00:56:04.47] spk_0:
so little information that’s been shared and so

[00:56:06.68] spk_2:
many questions way.

[00:56:29.19] spk_0:
We have asked, you know how in the community Call it and 10 held. We directly asked Capital if they could confirm how long they plan to own the new version of public interest registry, whatever the new or profit is, how long they plan, tone and invest in that company. And they their answer was a really long time in terms of this work. Okay, well, in terms of private equity, I mean, a year could be a long

[00:56:38.39] spk_2:
time, you know,

[00:56:55.20] spk_3:
Right on his block post. Eric Brooks says Ethos has stated on multiple occasions that we are committed to investing. P I R for the long haul. Are investors include families and not profit acquisitions with long term investment horizons. Um, okay, now, but

[00:56:56.08] spk_2:
your concern is that they could resell it and then and then and then we And then it’s then it’s

[00:57:27.76] spk_3:
between 22 Private. Well, even if their public to four profit entities contracting and the outside community has no input into what contracts are between two companies any more than you know any more than we can comment on intends contracts with vendors for NTC, it becomes a matter of private contract in the case of every sale. Okay. All right. What should, uh, what your listeners do. What should we be doing? We gotta we gotta

[00:57:34.50] spk_2:
move on What you’ll do, you really

[00:57:36.45] spk_0:
love? You can

[00:57:37.14] spk_2:
go

[00:58:25.50] spk_0:
to save dot org’s dot org’s s a V e D o t org dot or GE where we have posted the recording of the community call, for example, if you want to be able to hear what the folks from these companies have said, uh, you can see the letter that we’ve sent to them that outlined some of the issues in the contract and what is really important right now. As for organizations to sign on and endorse our request that the sale stop or if you can’t sign on behalf of your organization, sign as a person as an individual. Right now there’s almost 550 organizations who have signed on, and we have almost 19,000 people who signed on those numbers really matter and help demonstrate that this isn’t you know, just in 10 and e f f who have a problem, right? This is a lot of organizations diverse people who understand that this is not in the best interest of a non profit, you know, four good world of the internet.

[00:59:14.24] spk_3:
Okay, Andi, uh, some of the other organizations involved Association of junior leagues. I’m just sampling from from a list of crisis text line do something dot org’s listeners know Aria finger Do something dot or GE ff Electronic Frontier Foundation Girl Scouts of us A Independent Sector Meals on Wheels America, National Council of Nonprofits and 10 Techsoup Volunteer Match Volunteers of America Wicked Media Y M C A of the U. S. A Y W c A U s A. All right, Amy Sample Ward. Thank you very much.

[00:59:22.12] spk_0:
Thank you so much. Tony. I really appreciate you kind of diving into this when I know it can feel a little acronym heavy, but it really will impact every single non profit

[00:59:33.62] spk_3:
Amy Sample word social media and technology contributor and CEO of in 10. You’ll find her at Amy sample ward dot or ge and at a M. E. R. S

[00:59:40.76] spk_2:
board and Aimee. Simple word. Lots of good wishes for your holidays. And for 2020. That’s a good wishes. Radio,

[00:59:47.02] spk_0:
I hope 2020 means we get to see each other in person.

[00:59:51.12] spk_2:
Well, we will it ntc

[00:59:52.47] spk_3:
But we need to go beyond that. Hopefully.

[00:59:54.43] spk_0:
Okay.

[00:59:56.03] spk_3:
Thank you so much, Amy.

[00:59:59.01] spk_2:
Next week and the week after, there are no shows. I hope you enjoy. Enjoy the hell

[01:00:24.21] spk_3:
out of your holidays. Take time for yourself. Disconnect off grid. You know what all that means? I don’t need to flush it out. I hope you do it. I hope you do it for yourself. Friends, Family. Do it. Take the time you need. You need to take time for yourself because you’re in a giving profession. So no show for two weeks. If you missed any part of today’s show, I beseech you, find it on tony-martignetti dot com

Nonprofit Radio for February 15, 2019: DEI & Governance

I love our sponsors!

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

WegnerCPAs. Guiding you. Beyond the numbers.

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

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

Get Nonprofit Radio insider alerts!

Listen Live or Archive:

My Guest:

Gene Takagi

Gene Takagi: DEI & Governance
Diversity, equity and inclusion run deeper than having folks of color on your board. Are you managing treatment, access and opportunity for non-white males? Gene Takagi and I talk through the issues, goals and methods. He’s our legal contributor and principal at NEO, the Nonprofit & Exempt Organizations law group.




Top Trends. Sound Advice. Lively Conversation.

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

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

Get Nonprofit Radio insider alerts!

Sponsored by:

View Full Transcript

Transcript for 426_tony_martignetti_nonprofit_radio_20190215.mp3.mp3

Processed on: 2019-02-15T23:46:00.277Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2019…02…426_tony_martignetti_nonprofit_radio_20190215.mp3.mp3.739300197.json
Path to text: transcripts/2019/02/426_tony_martignetti_nonprofit_radio_20190215mp3.txt

Hello and welcome to Tony Martignetti non-profit radio Big non-profit ideas for the other ninety five percent on your aptly named host. Oh, I’m glad you’re with me. I’d be hit with like Oper diagnosis if you made me breathe in the idea that you missed today’s show. D I and governance, diversity, equity and inclusion run deeper than having folks of color on your board. Are you managing treatment, access and opportunity for non white males? Jean Takagi and I talk through the issues, goals and methods. He’s our legal contributor and principal at Neo Non-profit and Exempt Organizations Law Group on Tony Steak, too planned giving one piece at a time. We’re sponsored by pursuing full service fund-raising data driven and technology enabled Tony dahna slash pursuant but Wagner CPS guiding you Beyond the numbers. Wagner cps dot com Bye. Tell US Attorney credit card processing into your passive revenue stream. Tony dahna slash Tony Tell us and by text to give mole donations made easy text. NPR to four four four nine nine nine Always a genuine pleasure to welcome Jean Takagi back to the show. He’s managing attorney of Neo, the Non-profit and exempt Organizations Law group in San Francisco. He edits the wildly popular non-profit law blogged dot com and he’s the American Bar Association’s twenty sixteen, outstanding non-profit lawyer. He’s at G Tak. You know, it means Gene. Gene, the law machine. Welcome back, Jean Takagi. Thanks, Tony. How are you? It’s a pleasure to have you. I’m well, thank you. Happy New Year. Happy New Year to you as well. Thank you. I think maybe this is just the first shot misses. And you’ve been on before? Yeah. You have been on to the new year. No, I haven’t. I think this might be the first one was the first buyer, and this is February fifteen thousand. Alright, well, so we wish you a happy New year anyway, on DH and I I hear you wishing it back. So thank you very much. It’s never too late. Never too late to say pleasant things to each other. Um all right. So diversity, diversity, equity and include vision. I feel like we should first identify our terms. That is that is that everybody knows that diversity, equity and inclusion are not the same thing. This is not like, what’s the law, you know, aiding and abetting. You know the law, he says. The synonyms mean the exact same thing. Break and enter or, you know, a dahna bet this’s not this is not that this is not that. So what? What? How would you define diversity? Arika? Well, I think you know, it’s a great point that that it’s not a belt and suspenders approach these three different terms, meaning three different things. So diversity, I think, is the range in way people different people differ, and it’s used often in reference to race, ethnicity, gender, age, national origin is big, and the news now religion, disability, sexual identity and orientation, socioeconomic status, marital status, language, physical appearance and just a number of other characteristics. So it’s just reflects the way that we’re all different from one another. Equity is the quality of being there, I think, with respect her rights and treatment, and access and opportunity and advancement for all people. It’s kind of the constitutional principles that we think of equal protections of the law and all of us having the right toe. Life, liberty and justice and persons and organizations that work towards a more equitable society focus on understanding the root causes of the inequities, and they’re looking to identify and eliminate barriers and, of course, increase justice and fairness, both on a micro level on on a macro level and that final term Tony inclusion is really the state of creating or maintaining environments in which any individual or group Khun B and feel welcomed, respected, supported and valley to fully participate, embracing differences among different people. So diversity gets us one part of the way. But without inclusion, diversity may mean very little. Yeah, on organization could be diverse. But that doesn’t mean that it’s inclusive because divers is just a photograph of ah, multi racial, multi ethnic, multi gender aboard. But that doesn’t mean that that that that board is inclusive on DH, creating the right kinds of environments like you’re talking about. Yeah, absolutely right. So if we you know, we might approach that that topic and in a bit. But if we just bring in people of marginalized communities like certain minority groups or certain gender groups or all of the other categories we talked about and they’re just tokens but not given any authority, and they just make for the good picture that you were talking about. Well, that’s not inclusive. Or and that’s not equitable at all. That’s just having diversity for diversity. Stake? Yeah. Yeah, for a good photograph and a like a check box or something. All right. So is this. Ah, well, this is an area that non-profits are, uh, working on. I mean, it’s an area that our whole countries working on. It’s it’s in our culture with black lives, matter and metoo and, uh, marriage, marital equality. So it’s this is not certainly certainly not unique to non-profits, but but our our national consciousness has been raised. Um, how do you feel? Or how are non-profits faring? I mean, and what do you see among the groups that you work with? Two? Sure. I mean, it’s a great point, Tony, that this is in our national conscience. And, uh, there are a lot of tension and controversies where these what I will think our our moral issues are at play, and we’re looking at legal solutions on sometimes opposites sides of what some people will consider moral and Justin, others might say, are not a matter of morality but my position. And I think the position of most of the organizations we’ve worked within. And I’ll note that we do work in San Francisco, and we work with them non-profits in New York as well. And those air, certainly, um, uh, centers that that might be seen as more liberal than other areas. But, uh, there are, I think, these basic beliefs that, you know, some people are born with certain advantages or disadvantages, no choice of their own. Some people are born with certain characteristics or abilities, and some are not have no choice of their own. And many of us believe that we should work TTO help assure that all people have equal rights, equal protection, equal opportunities. And that’s sort of the moral case for saying, you know, diversity, equity and inclusion in our non-profits really matters because if we’re not leading in these areas is a nonprofit sector there’s there’s a question about that’s not a core value, really, is what the work we’re doing just focused on benefiting certain groups and maintaining status quo and improving the status quote for certain people with power and privilege. So that’s that’s kind of where I stand on that. Yeah, um, we may as well just call this right out. I mean, I feel an obligation to do that, You know, when we say certain people, some people no fault of their own, whenever you know, born with privilege and power and status. I think talking well, We’re talking about white males. There’s a There’s a white male supremacy culture in the country. And, um, that’s what creates structures that are oppressive, you know, day to day to people who don’t enjoy that power and have that that perceived status and and you know it. It creates a lack of opportunity and oppression and, ah, difficulty and just like day to day struggle, that it’s hard. It’s hard to. It’s hard for others for me to appreciate. I try, but it’s hard to understand the full the full impact of it. And I appreciate that, Tony. It’s I mean, it’s a different I mean obviously a complex and difficult to discuss subject. It makes us all uncomfortable, which is part of the reason we need to have these discussions on the board level and on a broader organizational level. Let me sort of make one sort of caveat to all of this. In America, with white male culture can be seen is, you know, the dominant color alter with the power and privilege very fairly in various duitz. Observe that, and that’s obviously a very informed opinion that you have with others and I’ll even say it’s not an opinion. It really is a fact. But marginalization goes beyond race to, you know, and and gender. It goes to sexual identity and orientation. Religion, nationality, wealth. Wealth is a big one. I think age now disabilities, um and I don’t necessarily, you know, have the capacity to understand all of those aspects, and nobody really has the capacity to ask, Understand the aspects of marginalization for all the different groups that we may have. And we do categorize people on a number of different levels and have to recognize that these are off often overlapping and interdependent zsystems um, that that involved discrimination and disadvantage, and some people refer to this is intersectionality. But it is something that we’re all dealing with this country and the one that you raise. Maybe it’s the one that’s primarily on her, uh, our attention right now. And that’s kind of the white male dominated, uh, power and privileged class of individuals and how our institutions have developed over our history with that perspective on informed by that group on how difficult it is to change on recognize the problems that we have if we just continue to go down that path and try to make little incremental changes to the system to make it a little bit fair rather than to think about rethinking some of these and re imagining how how more equitable systems could take their place. But the white male power structure, though I that’s the that’s the root of all of it. It it seems, you know, the more I read and think that’s that’s the foundation of it. Of all the all the inequities, I myself apologize. We’ve got to take a break, but we’re coming right back to this gene. Stay right there. But I have to take care of our sponsors, too, Pursuing their newest free book, The Art of First Impressions. It’s all acquisition. To attract, acquire new donors, you have to make a smashing first impression. They re book has the six guiding principles of ineffective acquisition strategy. How to identify your unique value, plus creative tips. You’ll find it on the listener landing page at Tony dahna slash Pursuant Capital P for please. Now let’s go back, Tio, My conversation with Gene and D. I and governance. All right, So Jean, you know, and so I think that’s the route is the white male supremacy, Um, and you know, And so you and I have to have a safe, you know, safe space for conversation. And it so happens there thirteen thousand people who are going to listen to this. But, you know, you and I, we know each other. So we I for the first time in, like, eight and a half years, I’m feeling a little awkward, but, um, I think if I say that, then that helps me. Teo, we’ll give it voice and just recognize it and say that’s that’s how I’m feeling. But we have to, you know, we’re two people who have known each other for for those eight and a half years, we’ve had lots of conversations where? Thirteen thousand people? Well, years ago, it was only fifteen hundred. But now it’s thirteen thousand. Have listened, and we’ve always been fine. So you know, you’re in a safe space. I’m in a safe space way. Have we have good heads when we have good judgment and, you know, just we have to just, ah, acknowledge there’s a little There was a little attention. At least I was feeling it you know, and just have toe. Okay. You know, these are just the’s air manageable topics. Fair enough. That sounds okay. Absolutely. Tony. And I’m appreciate you having you know, this conversation. It’s obviously one again that’s super sensitive, and I’m sort of, um, the beneficiary of certain powers and privileges myself, so I can appreciate. While I’m of Asian American descent and I have dealt with certain inequities because of that, I can certainly appreciate the many powers and privileges of I’ve had because of my background, including being a male and including living in AA community, where Asian American males are not that uncommon. So it’s a difficult discussion tohave, and everybody’s gonna have a different perspective on this, but I think again, making sure that people do have this discussion at every table. So at the board table, at the dinner table with your family, I think these are important discussions and, um way only benefit by talking about this. Even if there are disagreements. And even if there are attentions and a certain level of uncomfortable feeling that I get generated by them on get’s, you know, we challenge ourselves. I mean, you know, you have your own business. You’ve you’ve broken out. You’ve you’ve challenged yourself in lots of ways. I have my own business. I have a show that, you know, half years ago didn’t exist, you know, So we’re open to challenge, and so we shouldn’t fear another challenge. We’re just taking on another challenge. I gets a sensitive topic, but that doesn’t mean it’s insurmountable by any by any stretch we’re both accustomed to challenge. So we’re challenging ourselves. I mean, you spent twenty minutes on Twitter, hominy, hominy, uh, you know, postings the seasons, challenge yourself and break outside. And those who don’t think differently think, think like everybody else. And where would we be if we all were of that sort? You know, I mean, you see that stuff on Twitter and Facebook all the time, And so now we’re, you know, I mean, you and I live it, Ah, lot, because we have our own businesses. But now we’re doing it in a a different way. A different arena, but still the same thing. It’s the same concept. It’s a it’s a challenge. And it’s ah, it’s overcome oppcoll I agree? Absolutely. Absolutely. If you don’t have the difficult discussions, then you’re probably not advancing a zoo, group or organization. Very well, right? And if you don’t challenge yourself, you’re not. You’re not advancing and growing as a person. That’s because that’s what I was getting to absolutely agree. So All right, so what if you’re on a board and you feel you’ve, you feel like, uh, the board does not reflect or the leadership of the organization. Let’s even bring in the CEO of senior leadership. But you’re a boardmember because we’re talking about defying governance. Um, and you don’t feel like the that that leadership, as I defined it, represents the the people that you’re serving doesn’t represent the communities that you’re serving. What do you think you should do? Hyre It’s a fantastic question, and I think that’s the one that everybody is asking right now, Tony. And partly because we keep getting these results, uh, that show that the nonprofit sector has really not been leading by example in terms of diversity on its board of directors or diversity in its leadership. I think the first thing we need to do is acknowledge that is that we’ve been doing pretty much a terrible job is a nonprofit sector in terms of getting diversity on our boards and diversity in an inclusive way, of course, so I wanted to raise. There was a survey by board source in two thousand seventeen called Leading with intent, and it found that ninety percent of CEOs and board chairs were white. Eighty four percent of board members were white, and twenty seven percent of non-profit boards were entirely wait. And these are bear improvements over a similar survey that they conducted more than twenty years ago. So, yeah, ah ah, highly disproportionate group and we were talking about power and privilege. Um, a really disproportionate number of Non-profit non-profit leaders in governance and CEO rolls are white. And when we talk about this in terms of larger organizations on and sort of the hyre paying CEO position, the gender differences come out as well, where a lot of white males again are dominating on those boards. And in those CEO position, Um, somewhat reflective of, you know, for-profit Fortune five hundred company CEOs and boards where there’s been actual movement, Teo increase att least on a gender basis. Some diversity on their boards. But Non-profits so far have been just doing the terrible drops, I think. Acknowledging that and saying whatever we’ve been doing so far, his not been very good. I think that’s the first place to start. Okay, So you could say, you know, our board is not unique. Our leadership. Sorry of the way. Our seven. Our leadership is not unique. You know, here’s the statistics. The trend is awful. The numbers compared to the twenty years ago, it’s either flat or just our bare improvement there or it’s a walk back. So we’re not unique, but we But we can be leaders on DH. It doesn’t make me comfortable, Teo to be on a to be a part of this organization, that it doesn’t reflect the people we’re serving. Um, first thing I suppose you are a boardmember. Er I don’t Should you? What would you What would you suggest in terms of bringing it up? Would you bring it up in a board meeting now? Probably not mean, you should. You want to have ah, a couple of back channel discussions first, right before you before you make this a, uh ah, ah, anew. What’s it called on agendas? You do boardmember is all the time A new Your business new business before you bring it up is there are lots of hard work that hard work for me to find. If you have a five minute discussion at the end of the board meeting about this topic, it’s not really gonna go. Yeah, you’re very far not introduce it as an issue and put it really on the back burner, if that’s how you’re going to raise it. So I agree some back channel discussions among some of the board leadership and bringing in the CEO to say, You know, this has been a problem in the sector. Let’s take a look at our own board and lets see, do we have this issue as well? And there’s a little bit of, you know, something that’s been called in the racial context. White fragility about being very defensive about about this and think, you know, Yeah, the sector is awful at diversity and equity on board. But you know what? Our boards really different. Even though you know, our composition might exactly make up our community. We’ve got a few people you know who are persons of color, or we’ve got a few people who were women or however you wantto look a diverse. But do they have to testify that you’re being very defensive? Very defenses? I think, having open discussions about, well, what would this organization’s board look like? Ideally, in an ideal world, what would this board be composed of? What different perspectives can we bring in? And why would we want diversity on our board, Our specific board? We know it’s a problem across the sector. We know that maybe on an organizational level, we haven’t always done the best job. But we feel like we have our hearts in the right place. Well, what would this ideally look like? And I think maybe that’s the starting point of discussion to say, Why do we want diversity? What tack of diversity do we want? And ideally, what would that bring out our organization? Why would that make us on it further our mission in a more effective and efficient way. Why would that make our organization be more sustainable over the long run? And maybe after that sort of sort of going for the positive first, maybe after that going? Well, what happens if we don’t do anything about it? Are we going to still be relevant? Are we still going to be around in ten or twenty years? Are we going to still be able to serve our populations as well? If we don’t do anything about these things. So I think those are the questions you ask. Maybe start with the positive and then go to the alternatives. What if we don’t do anything? I’m feeling like Tio. If the board is goingto have, uh, focus on this and have meetings around this and that a professional facilitator could be really valuable because, you know, because of the things that that I talked about and you you seem to feel too, you know, ten minutes ago, and that’s just two of us who know each other very well. You know, but I can imagine a board of eight or ten people, and the defensiveness starts coming up. I could see where a professional facilitator could be really valuable. Absolutely, Tony. And one who has experience dealing with DEA issues. Right, Because they they are particularly sensitive. Just a strategic management consultant who doesn’t deal with this and who might be a member of a powered and privileged class might not have the same perspectives and sensitivities to be ableto bring in the discussion than the understandings of the board members. Teo, be able to move this discussion forward in a way that will actually promote inclusiveness and equity in the organization. Just when would you just said d? I was just thinking this is a really It’s a good thing they don’t call it, uh, equity inclusion and diversity. That would be I’d improvised explosive device. And this this stuff can be really explosive. So if you’re not so I think I just if you’re not careful, you could you could you? If you’re not careful, you could die from the i e d of D I Yeah, that’s absolutely all sorts of possible acronyms. And I hear E. D. I is a frequent acronym on this issue as well. But, yeah, put the put the letters together in the wrong order, and those are the bad things that can happen. You could die from the from the explosiveness of deeds of I of d I. So All right, So what are some of the positives? And, you know, we were going to take inventory. The positives. Then we’re going to take inventory of the negatives to the fear the change. Some people gonna lose their board slot over years. This is obviously not gonna happen in six months. It’s not even happening. One board cycle. But if it’s going to if the organization will be committed to it, you know, there’s going to be costs and benefits. But so what? What? What? Can we identify some of the benefits of having a board that does represent Ah, leadership? Sorry, I keep saying board, but leadership that does reflect the community that we’re serving. What We know someone we know, some advantages. I mean, I because I could spitball a couple, but what do you What do you think? Well, I I think maybe the common sense advantage that we can all probably think about say, that makes sense is that when you got diverse perspectives and diverse backgrounds, it’s going to result in. Mohr informed better decision making because it’s not a bunch of people with the same experiences on the same backgrounds in the same kind of understandings of certain things. You’ve got more, more different thoughts, a different thought. Leadership in there and diverse leadership attracts broader community support. It also leads to greater equities because you’re now thinking about well how to our programs or how our services effect not only just sort of people in general, but segments of our communities. How are we doing with our African American communities or with our Latin next communities or with our Asian American communities with our LGBT communities? And you know those air things that we can all sort of bring in more diverse boards in an inclusive, diversity. Inclusive manner, of course, brings more different perspectives. Beings Mohr leadership that’s informed by different ideas and different backgrounds on DH that really helps out on, you know, also different networks. You’re opening up the opportunities for for for networking and who could be brought to the organization by having a more representative, diverse and inclusive board just absolutely latto napor networks and I think thunders now are starting to become very interested in this area’s well. So in terms of attracting the funders, if you rely, at least in part, on having grants coming from foundations, um, there’s trying to become more and more interested in this space. And part of the reason why is because there has been a lot of backlash against Thunder’s not taking into account DEA in the past, on their being called out and there have been different books. I’m not sure if you’ve been sort of talking with people about these areas, but on and had your argast has been, he wrote Winners Take all, which was on The New York Times top one hundred books list and that talks about sort of power and privilege and philanthropy and how, it seems, you know, serves to perpetuate inequities. Well, foundations are sensitive to that, and I know there are some foundations like the Ford Foundation, that are actually really moving, um, to address some of the inequities that have been caused by by foundations. There’s rob racial Stanford, who just wrote just e-giving who talks about tax policy and how wealth and philanthropic giving like that by maybe like somebody like Jeff Bezos who pledged two billion dollars to charity is really something that deserves not our gratitude but our scrutiny because of his ability to shape policy. You hung that money, influence things going forward and again in a way that a white male sees importance but not addressing it with a broader community. So I think the philanthropic sector is more interested in funding in these areas now, as they’ve been called out on it. Uh, and so if you’re a charity just dependent upon it, it’s gonna really be important out to your funders, many of them and increasingly, mohr that you’ve got a diverse board that has taken into account different populations that it may serve. Are we gonna take a break? Someone we did have on this show just just a few weeks of December. Edgar Villanueva, Uh, the author of the book de Colonizing Wealth and his thesis that use money as as healing For all the past inequities over centuries, Edgar is excellent. Also. Jean, When we come back, let’s let’s talk some about some of the downsides, the fears that we’re going to have to categorise and and list and deal with also among the leadership for this change. Andi, let’s talk some about token ization, too. Weinger CPAs anew Archive Webinar foryou. Accounting update. What has changed that Wagner knows intimately. If you can get intimate with accounting, you shouldn’t get into it with accountants. But but that’s hard. We’re talking about the topics that they know intimately, and you just need to know them a little bit so you don’t need to be intimate with them like the accounting update. New requirements for financial statements. You find this at regular cps dot com. Click Resource is then Webinars. Now time for Tony Steak, too. Take your plan. Giving one piece at a time. I was watching a tree get cut down in my father’s yard like Abraham like, uh, and I was thinking about planned giving. I did not think about honesty. I was thinking about No, wait, That was, Who was the tree? That was George Washington, not Abraham Lincoln, right? Cutting this tree down. That was George Washington. Um, but I wasn’t thinking about either of those Anyway, I was thinking about plans e-giving there’s a guy up in in the bucket and he throws a rope around a branch so that it doesn’t fall uncontrolled after he cuts it. And that’s just like you need to have a couple things in place. Simple things. Just simple rope, that’s all. Nothing elaborate but simple rope thrown over another branch. You need to have a couple things in place before you start your plan giving like, you want to know who your prospects are going to be. We’re gonna be promoting this, too. You wanna have some? Ah, simple plan for going ahead. And then you can go ahead and start your promotion. The cutting. And that would be, of course. You start with bequest. Just take it one piece at a time. Just the way I watched this guy cut this tree down One branch of the time it took ah, full eight hour day and including all the clean up. So you take it one step at a time. And, of course, I’ve got clips of ah, thiss tree surgery, all as part of my video at tony martignetti dot com. Now let’s go back, Teo. Gene on DH talk about D I. Diversity, equity and inclusion and governance. So, Jean, some of the some of the negatives that we’re going to have to deal with, um what what do you fear of change? I mean, I’ll throw a fear of change. Like I said earlier, some boardmember is going to lose their seats. I don’t know that hands are going to be going up and saying, OK, I’ll surrender my seat, even though I’ve got I’ve got two terms left because our by-laws called for three times. But I’ll give up my last two terms for there to be a person of color in my seat. I don’t think that’s gonna happen. So what are what are some of the negatives were going to deal with? Sure. So, you know, in addition to the one that you mentioned about, well, you know, does that mean I have to go was a boardmember because I’m a white male and be replaced by somebody else? That’s not necessarily the case, but that is certainly one of the fears that comes up more. General fear is maybe that Hey, we’ve got some great board members here, but they happen to be white. Does that mean we have to let them go? So that’s one of this year’s They’re stuck on a government structure that says, okay, maybe we were goingto have at nine boardmember Zohra ratio of four to ten, and you have ten board members and nine happened to be white. And you think they’re all great people? You don’t want to lose any of them, so the side as well, we can’t make our board more diverse without losing good people. And that’s a difficult discussion. Tohave One solution maybe increased the size of your board. You go. It’s not It’s not an either or, you know, good, bad. Kind of No, that’s a center in institutional structure. Way. Have to sacrifice some loose, um, good white people so we can get people of color on know just what you suggested. How about we just expand the size of the board? Yeah, but in some cases, it might be good for some people to step aside. And I say that with respect to age as well, because, well, we haven’t talked about it very much. Ah, Non-profit boards tend to be kind of older to Tony as you may know, uh, and young people, particularly millennials. Andi, even some Jen acts are just not getting onto boards. And they’re losing interest because nobody’s recruiting them. So people stepping aside to let in younger generations new thoughts, new ideas, new backgrounds and bring them onto the board, I think is just incredibly important as well. Yeah. You know something? I’m I’m thinking, um, you know, any of these solutions or methods? I really I don’t want to call a solution a method of process that we’re talking about. Jean, you know, may or may not work for aboard, but I guess what my goal for this show is just to encourage the conversations. You need to figure out what’s gonna work best for your organization. Um, you you know? So yeah, you need to You need to tailor these ideas of just But but think about it, you know, be introspective. And if there’s if there’s some If there’s angst, you know, talk about it and give it voice and think about a way a way forward of making the situation better. I could not agree any more with you, Tonia. Absolutely right. I did want to address some of the other challenges, a swell that you raised about having these discussions. Because while it’s great to say, you should have these difficult discussions, there are these barriers to them. And so I think it’s okay to acknowledge that there barriers, including this fear of losing good board members or maybe getting kicked off the board yourself. But, you know, in addition to that, you know, people are thinking about well, in our mission really isn’t about diversity on, and it isn’t about racial equity. Our mission is about something else. It’s to increase, huh? Education in the sciences or it’s tio promote the art or to do something something else doesn’t Apparently, att leased the surface level have, ah, racial lens on it. So people think, Well, it’s working, invest and to do this right, Tony, you talked about bringing it consultant. The board has got to be prepared to invest money and time. You’ve got to do it on the budgeting process and you’ve got to say, diversity, equity inclusion. This is one of our core values, and we are going to invest as if it is a core values, and that is another barrier it’s going to cost money, it’s going to take time. It’s going to take time out of your board meetings because this is a difficult discussion that you’re not goingto have in fifteen minutes. Uh, it’s going to take time, and it’s going to be probably something that goes on forever. So these aren’t short term solutions that solved a particular initiative. These are ongoing discussions that aboard needs tto have to mean make sure that it continues to promote and observe its core values. And I would say that board members, individually you talked about the board of the whole thing, that this is the rule to have these discussions Well, I’m going to argue that a boardmember individually has a fiduciary duty. If D. IE is a core value of the organization to bring it up, Teo, talk with first, you know, private conversations with individual more members. But make sure that that goes to the full board, because if acting in the best interests of the organization is your fiduciary duty, which it is, and G I is a core, value the organization while doing things that further your mission and are consistent with your core values. That is your legal duty. And while you might not get into any legal liability situation for not observing him, it’s still your legal duty to do it. So I would say it’s really imperative upon individual board members who have identified D. I as in core Valley of their organization to make sure that it gets stated that way. And that discussion goes to the board and that investments are made on decisions are made, which will cost something. So to make investment means you’ve got to take money and time out of something else and put it towards this. It’s now time to start doing that for a great many organizations, take money from something else, or find right, raise more money. Correct. There may be sources of money that, uh, that will support this kind of work. Um, I don’t know, but but it’s again it’s not an either or thank you, that’s that’s excellent the way you explained Gene the individual responsibility, because if yeah, because if we all just looked to the if we all just looked to the collective and the collective never raises it, I mean, the collective is just a the collective just a bunch of people. And so if the collective never acts, then that none of the people are. If none of the people are acting, then the collective will never act. That’s why I’m trying to say it sticks me in the circle. Curious way of getting to things. But so, you know, if if every individual’s waiting for every other one, it’s never gonna happen. Um, okay. Uh, all right. When we come back, I got taking a break. When we come back, let’s talk some about organization, Gene. Tell us can use more money. You need a new revenue source. You get a long stream of passive revenue When cos you refer process their credit card transactions through Tello’s. It’s that simple. You give fifty percent of each individual fee and those things add up. That’s the long stream. Month after month after month. Watch the video. Then send your potential companies to watch the video. You’ll find the video at Tony that m a slash Tony Tello’s Let’s do the live listener love. Um it’s ah goes out wherever you might be from Guten Dog which would be Germany to Ni hao, which would be China two Konnichi wa which would be Korea. Um konnichi wa is what konnichi wa is Japan. I’m sorry on genes on Kenichi while Japan, of course. Because Korea is Anya Haserot. That’s right. Yes. Uh, So the live love goes out and that’s for the listeners abroad. But the live love goes to the domestic listeners. Nonetheless, sometimes I do abroad first. Sometimes I do domestic first. So this time I’m doing their broad first But the domestic listeners throughout their fifty states because it’s not only the continental United States we’ll bring in Alaska and Hawaii also, of course, the live love goes out there. So wherever you are listening, live love out to you and the podcast pleasantries, too are vast podcast audience. I’m grateful that you are with us been subscribing the numbers keep rising pleasantries to our pod cast audience. Okay, Jeanne, Um so organization. What? What does that look like? When people of color, uh, or other, uh, other classes are brought in as tokens. What? What does that look like? What that looks like Tony is it’s awful. Well, let’s use the person of color a CZ example. You have, ah, vast majority of the the current board composition being white, and that board decides what we need. Toe add a person of color onto our board. Um, so they bring in one person of color, maybe an African American individual. They bring them on the board, and then they take the picture that we talked about at the beginning of this show. It makes for a better picture than it wass before. Um, but that individual boardmember is really not given any additional power or duties. They’re not asked for their different perspectives that they bring onto the board. There’s no plan to incorporate that person’s background in knowledge to influence what mate be done with the organization’s planning efforts or its future board governance structures. So that person is just brought in there for the good looking photo that shows a more diverse board than it wass on DH by excluding such person from from riel positions of influence and power. Yeah, that’s really just making them a token. And that’s what we’re talking. There’s the key. Yeah, they have. No, they have no power in the organization. There’s no plan for rewarding sharing the power. Um, yeah, the power center isn’t changing. And if it’s one person that that’s probably that to me, that would be a red flag has to be a pretty small board for one person, too, to make a difference and to be incorporated into power structures adequately, Um, and you know the kind of something you know, sometimes you’ll see the diversity committee, right? And so the so the people of color, the lgbtq, you folks, whatever three older folks they’re put on the diversity committee, and that’s it. She really just be called the Divers committee. We have a committee that’s diverse, That’s it. That’s what they do. That’s their structure. That’s their charge to be diverse. Okay, we have a diverse committee, you know, Um, you know, it’s it’s it’s insulting on its It’s also counterproductive because people know when they’re tokens when when they’re not given the levers of power or access to them. People know that, you know, they feel it, and it’s just going toe. It’s gonna create resentment and animosity. It’s It’s counterproductive to have ah, a diverse committee. I agree. Chun hee. So in there, lots of stories where persons of color who get invited onto boards find themselves being the only, UH, person of color on that board and being appointed to a diversity committee. Um, and that gets to be a routine. They join other boards with similar sort of bored compositions, and again, they’re asked to be part of a diversity committee. And, well, if that diversity committees actually given enough power and influence to effect change so that diversity, in an inclusive way is really strengthened in the organization and its governance. Well, that’s one thing. But if that diversity committee, year after year, is just for the photo op, uh, and just for the Grant proposal that says we have one, well, that’s really classic token ization. And and that’s something that is counterproductive in the incredibly you’d be better off not having that individual joined the board. That will be a terrible board experience for that person as well. Let’s talk about how this is a e-giving deviating from what I was thinking, but it is important. How do you share the levers of power? A. CZ. So if the leadership is, is all white what? What do they do? What do they need to do? Latto give real power, too. The their newly new people of color, etcetera. They’re newly diverse board members. What does that look like? Sharing the levers of power. What? You know, I need you to talk a little bit so I can think about it cause I just thought of it myself. How do you do that? How do you start to share power? Great question. And that would be kind of one of those generative questions that board should have. Ah, long discussion about once identified D. E A. Is something they want to prioritise and adopted the core values, and I think they’re a few ways to do it. The first way is to decide well, the first thing to do is recognize every boardmember actually has no interference. Individual power. Every boardmember individually has no power unless it’s delegated to them individually. While they have no power. Collectively, as the board, they’re the ultimate power of the board of the organization. So collectively they have power individually, they have no power. So bringing on one person, colored just to be an individual boardmember not delegating any authority to that individual is classic. Token is but you have officers. So you have a chairman of the board. You may have a vice chair, you may have a CEO. You may have a development director, some of these air staff positions in all volunteer organizations that may all be volunteer positions. And there may be mixes, obviously, but their officers who do have individual authority and that where you have to think about is, is our diversity in an inclusive manner being affected through our officer positions there. Maybe committee positions that have power as well. Where they’re delegated with the authority to do things on behalf of the board and executive committee would be, you know, a typical committee that’s often asked to sort of take over Mohr of the day to day oversight. Then the full board would be and is a person of color, or whatever marginalized group that you’re trying to increase. The first report is that person, or are those people representative on those committees that have important power? And then, beyond that, maybe the other way to think about it is influence. So while I said each individual boardmember has no power different board members have considerable influence. And if you have a board meeting that’s, you know two hours long if you’ve got a board of, like, fifteen people, there’s only so much that each person Khun say and allow everybody to participate right, And that’s often controlled by the chair of the board, sometimes by the executives who run the board meetings, which isn’t always a great way to do it. But somebody is facilitating and latto presiding over the board and the board meetings. And to do that in a way that recognizes that persons from marginalized groups the person that you asked to be on the board, to represent some of those ideas and perspectives and thoughts, well, that might be unfair to say, you know, you’re brought on to represent every person who’s you know in that group. Yeah, that’s on. So just yeah, just to bring those people just to get at least their individual perspectives coming from that background or characterization, that can be important. But if the board members just don’t acknowledge that, you know, and just give them five minutes to speak at a you know to our board meeting because everybody else needs there five minutes. That’s not going to do much to effect change, either, You know, So so. But promotion, um, get mentoring access to the leadership Onda leadership that that hears them. I’d also welcoming challenges to the leadership, you know, not mutiny. But there’s a lot between silence and mutiny. There’s a broad spectrum there, and so welcoming challenges to the authority and even even in public. If you know if something comes up in public and it seems wrong that the challenge to that shouldn’t be defensiveness, marginalization and rebuking, it should be acknowledgment. I’m trying to listen and learn. You know? What is that? What’s the What’s the What’s the source of the conflict that’s been pointed out? Mean those air? Those are things that that I was thinking of. Two as a cz ways of sharing power and e-giving e-giving voice. I got to take our last break. Gene Hoexter give. Can you use more money? Need a new revenue source? Here’s a second way mobile giving. You can learn about it with text to gives five part email mini course. Fiv e mails won the day and you will know no more about text e-giving mobile giving than you did six days earlier. I did it, and I learned it’s easy to get started. It’s cheaper. It’s easy for your donors. It’s cheap for you to get started. There’s just a couple of lessons that come out of this many course to get the email many course Text NPR to four, four, four, nine, nine nine. And thankfully, we’ve got several more minutes, but probably not enough, uh, for D I and governance. Anything else you want to add? Jean, too. I threw something out that I took a break, because that was that was that unfair exercise of power? I’m sorry, E. I got it. I got to take care of the sponsors. I didn’t mean to do it that way. So anything you want, toe, respond to what I just said. I’m going to echo actually what you said because avoiding conflict going for consensus based decision making on boards, I think is really, um, enhances the white supremacy culture or a majority or power privileged supremacy culture. So I think embracing some sort of conflict is important. Having a long term focus and not just a short return focus is really important not to looking to just better perfect the status quo when you recognize that the status quo was largely designed by one group for their own benefit is also another important factor. Now I’ll just leave you with a few. Resource is so bored. Source has got some excellent subject matters, particularly those written by Veneta Walker, who used to be their vice president and now engaged in consulting. And I’m going to have a chance to talk with Brunetta about four diversity on a webinar coming up in March. So just plug that a little bit and say, look for her readings because she’s a really leader in this space and you can learn a lot. Okay? And now you’re going to be on this Webinar in March, which I’m sure you’re going to promote at the non-profit. Law blogged dot com, right? Absolutely. Okay, so people need to be subscribing to that. You’ve heard my admonition hundreds of times, subscribed to non-profit law blob dot com and you’ll you’ll find out info about Jean and on the Web in our with Veneta, we still have some time left. Jean What? What do you want to talk about? Well, I’m going to say a few more things than what one is that I was going to mention Edgar Villanueva’s Well, because his book, It’s remarkable de colonizing wealth, and I really appreciated your show with that girl. That was such an interesting show. He’s excellent. He’s excellent. Yeah, the next thing is, maybe once you figured out what you want to do in terms of Why are you bringing diversity on? And how is it going to help your organization pursue or an advance its mission in a better way. That’s the time to start to now, reach out to communities of color on DH. You’re gonna have to go through different ways because the traditional way of bringing in boards for most non-profits that have self perpetuating board, we just ask our friends or we asked our contacts and very much, you know, and I think there’s an evolutionary biology principle of affiliating with, you know, people who are of our similar characteristics, all to do with the selfish gene and and all of that and so that that’s our comfort zone. That’s what we may be predisposed to because it had sametz solutionary advantage in the past just sort of congregate with one another that we’re very much alike. But we’ve got a break out of that. And if you want diversity, you got to reach out and go beyond that. Acknowledge that you may have those those predispositions, but you’ve got to reach out. Consider Boardmember Ching Services, identity based professional affinity groups, colleges, community leaders reach out and be uncomfortable. As you said, Tony, be uncomfortable, get to know new people and get your organization to know new people and new groups and figure out how to do it right. If you’re really open and honest about it, these people are going to want to help us. Well, yeah. Go into the communities that you are under represented by that you’re under representing, uh, set up some meetings. Um, you know, maybe it’s Maybe it’s among your benefit community, The people you’re helping talk to them or uh, but as you said, Gene, you know, goingto community’s going to networks that you haven’t been in. People take a meeting, they’ll take a meeting. And if your genuine and sincere they’re going to hear that, they’re going to hear that and they’re going, They’re going to want to help you. All right, Gene hears. I don’t know if we covered this adequately again. My goal was just to get people consciousness raised and get them thinking about and talking about these things. But I want I want each of us to listen back to this, and you and I’ll decide together whether we should say some more on this or we feel like we’ve we’ve done enough. Not that now that we’ve covered the whole topic. But have we, uh, Have we met the goal? Okay, but then you know what? I set the goal. So I’m open to a different goal to see, see that white powers creeping in and set the goal. And then I’m saying that we’re going to judge it by the goal that I said, So it’s bad. So you and I will collaborate together, and we’ll decide if we’re going together. If we’re going to do this topic some more sound good. I love to do with you and love to actually talk about how you can implement some of these ideas in by-laws and governing documents from illegal angle. There’s your record to it. Okay, It’s up to you if it’s upto us together, if we want to do some more. All right. So he’s Jean Takagi non-profit law block dot com. You got to subscribe to that and follow him. He’s at G tak Gene. Thank you so much for real. Genuine and could have been even tougher. But but it wasn’t as tough as it could have been. So I thank you for that conversation. Thanks so much. Really Appreciate it. Tony. Have a great day. Thanks, Gene, next week. I don’t know if you missed any part of today’s show. I beseech you. Find it on tony martignetti dot com were sponsored by pursuing online tools for small and midsize non-profits data driven and technology enabled. Tony dahna slash Pursuing Capital P by Wagner. CPS Guiding you Beyond the numbers regular cps dot com by tell us credit card payment processing your passive revenue stream, Tony dahna slash Tony Tello’s and by text to give mobile donations made easy text. NPR to four four four nine nine nine are creative producers Claire Meyerhoff. Family Blitzes. The Line producer shows Social Media Is by Susan Chavez Mark Silverman is our Web guy, and this music is by Scott Stein of Brooklyn with me next week for Non-profit radio Big non-profit ideas for the other ninety five percent go out and be great you’re listening to the talking alternate network e-giving. E-giving. You’re listening to the talking alternative network. Are you stuck in a rut? Negative thoughts, feelings and conversations got you down. Hi, I’m nor in Sumpter potentially ater. Tune in every Tuesday at nine to ten p. M. Eastern time and listen for new ideas on my show Yawned Potential Live life Your way on talk radio dot n Y c. Hey, all you crazy listeners looking to boost your business? Why not advertise on talking alternative with very reasonable rates? Interested simply email at info at talking alternative dot com dafs. Do you like comic books and movies? Howbout TV and pop culture. Then you’ve come to the right place. Hi, I’m Michael Gulch, a host of Secrets of the Sire, joined every week by my co host, Hassan, Lord of the Radio Godwin. Together we have over fifteen years experience creating graphic novels, screenplays and more. Join us as we bring you the inside scoop on the oppcoll universe you love to talk about. Wednesday nights eight p. M. Eastern talk radio dot and wives. Theo. Best designs for your life Start at home. I’m David, the’RE. Gartner, interior designer and host of At Home. Listen live Tuesday nights at eight p. M. Eastern time as we talk to the very best professionals about interior design and the design that’s all around us right here on talk radio dot N. Y. C. You’re listening to talking Alternative Network at www dot talking alternative dot com, now broadcasting twenty four hours a day. Are you a conscious co creator? Are you on a quest to raise your vibration and your consciousness? Sam Liebowitz, your conscious consultant. And on my show, that conscious consultant, our awakening humanity. We will touch upon all these topics and more. Listen, live at our new time on Thursdays at twelve Noon Eastern time. That’s the conscious consultant, Our Awakening Humanity. Thursday’s twelve noon on talk radio dot you’re listening to the talking alternative network. Hyre.

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

I love our sponsors!

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

WegnerCPAs. Guiding you. Beyond the numbers.

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

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

Get Nonprofit Radio insider alerts!

Listen Live or Archive:

My Guests:

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

 

 

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

 

 

 

Top Trends. Sound Advice. Lively Conversation.

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

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

Get Nonprofit Radio insider alerts!

Sponsored by:

View Full Transcript


Transcript for 412_tony_martignetti_nonprofit_radio_20181019.mp3

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

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

Nonprofit Radio for October 20, 2017: Disaster Relief & Your Event Pipeline

I love our sponsors!

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

WegnerCPAs. Guiding you. Beyond the numbers.

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

You’re not a business. You’re a nonprofit! Aplos Accounting: software designed for nonprofits.

Get Nonprofit Radio insider alerts!

Listen Live or Archive:

 

My Guests:

Gene Takagi: Disaster Relief

Gene Takagi

We kick off with Gene Takagi explaining how–but first, whether–your nonprofit can help disaster victims. You need a lot more than a big heart and a CrowdRise page. Gene is our legal contributor and principal of NEO, the Nonprofit & Exempt Organizations law group.

 

 

Pat Clemency: Your Event Pipeline

With Pat Clemency at Fundraising Day 2014

Get committed major donors from your events by making them transformational, not merely transactional. Pat Clemency has before-, during- and after-event ideas. She’s president and CEO of Make-A-Wish Metro New York and Western New York. You’ll learn lessons from Rochester and Buffalo. (Originally aired on October 24, 2014.)

 

 

 


Top Trends. Sound Advice. Lively Conversation.

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

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

Get Nonprofit Radio insider alerts!

Sponsored by:


View Full Transcript


Transcript for 362_tony_martignetti_nonprofit_radio_20171020.mp3

Processed on: 2018-11-11T23:45:13.481Z
S3 bucket containing transcription results: transcript.results
Link to bucket: s3.console.aws.amazon.com/s3/buckets/transcript.results
Path to JSON: 2017…10…362_tony_martignetti_nonprofit_radio_20171020.mp3.136977748.json
Path to text: transcripts/2017/10/362_tony_martignetti_nonprofit_radio_20171020.txt

Hello and welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your aptly named host oh, i’m glad you’re with me. I’d get slapped with a diagnosis of arjun. Oh sucks in ic acid urea if you wet me down with the idea that you missed today’s show disaster relief, we kick off with jean takagi explaining how but first weather you’re non-profit can help disaster victims we need you need a lot more than a big heart and a crowd. Rise page genes are legal contributor and the principle of neo the non-profit and exempt organizations law group and your event pipeline get committed major donors from your events by making them transformational, not merely transactional pat clemency has before, during and after event ideas she’s, president and ceo of make a wish metro new york and western new york you’ll get lessons from rochester and buffalo that originally aired on october twenty fourth. Twenty fourteen on tony’s take two i learned something from my mom’s death we’re sponsored by pursuant full service fund-raising data driven and technology enabled tony dot m a slash pursuant also by wagner, sepa is guiding you beyond the numbers, wagner, sepa is dot com you’re not a business you’re non-profit apolo see accounting software designed for non-profits non-profit wizard dot com and tell us credit and debit card processors you’re passive revenue stream tony dot slash tony, tell us a genuine pleasure to welcome back jean takagi every time he’s on it’s a genuine pleasure. A real pleasure. He’s, the managing attorney of neo the non-profit and exempt organizations law group in san francisco, california he edits the wildly popular non-profit law blogged dot com and he’s the american bar association’s twenty sixteen outstanding non-profit lawyer he’s at g tak welcome back, jean takagi. Thanks, tony and my mind. Sincere condolences on your loss. Thank you. Thank you very much, jean. Thank you for that. Um, how you doing out there? What? What? So what? We’re in transition transition season whether what’s the weather been oh, actually, the weather’s been all smoky for you hasn’t it been? It has been and going right in line with today’s. Northern california fires weight got a little bit of rain yesterday really light, but it it helped, but we’ve seen you know more than two hundred forty thousand acres. Burns forty two death more than a billion dollars worth of insured losses so it’s really hit it pretty hard up here, and you’re getting impact hours away from from the sort of the where the most devastating fires are. Smoke and ash et cetera, right? Yeah, well, we’re not getting ashot here, although the particulates in the air have been a dangerous levels. So we’re encouraged teo, stay indoors for many of those days, but at least not visible. Ash in san francisco. No smoke, though. Yeah, that’s definitely feel the smoke and those with sensitive breathing issues. I’ve got to really be careful. So as you said, of course, right in line with our discussion, besides the devastation in the california fires, of course, houston, um, florida on dh not only natural disasters, of course. Las vegas shooting there’s ah, there’s. A lot of potential for non-profits teo do good work if they’re suited for it. Yeah, i mean that’s, that’s very true. And we’ve had a very tough year in terms of natural and man made. Don’t forget puerto rico. Yes, thank you very much. I i don’t want to make the mistake of puerto rico is part of our united states? Yes. Thank you for that. Thank you very much, jane. Yeah, and, you know, people want to do good things. And, you know, as he said, a lot of people want to give with their heart on dh people run charities, and those people also want to do something. So the question, you know, is like, well, what can we do and what’s the first question that we should be asking if we are in a non-profit were ceo are chief fund-raising perhaps or a boardmember well meaning boardmember what’s the first analysis we should weigh should we need to look to well, i think the first thing you have to do is you have to look at your mission because, you know, your mission dictates what you’re allowed to do. So if you have a purpose of raising funds to help homeless people in new york, all your donors have entrusted you with their money for that specific purpose. So even though the board and the employees might say, oh, my gosh, we’ve got to get relief out to puerto rico let’s, take the money that we raised in the past that we have. In reserve and dedicated towards puerto rico. While that might be a really admirable and understandable a desire, you’ve got to remember that you owe you own obligation to your donors who had given for homeless people in new york in that case. So checking out what your mission says, and he got a look at your articles of incorporation, our certificate of incorporation and by-laws how you’ve been marketing to your donors to figure that out? What kind of trouble might you get in with, say, the new york attorney general, if you’re a charity that ah, it does have the mission you described and nonetheless sends some relief money, teo puerto rico, or anywhere outside new york, right? I think you know, i think most regulators they’re going to be a little bit easy if you’re raising new money. Tio go outside of your mission that’s not what you’re supposed to do if it’s outside your mission, but i don’t think they’re going to come down hard on you for that, i think where they may come down hard is where one of your donors complain that their money was used for something that wasn’t intended, because that was not within your mission. So if they use existing money and it’s that that hurts what the organization is able to do in terms of furthering its current mission, that becomes the problem i see on dh. Yeah, it only takes one one upset donorsearch tio to write a letter or start an inquiry and you could end up in some trouble. Yeah, or drag it through the media, and then you get a bunch of upset donors, you know, you know, the mission was really something that they were connected with, which, you know, led them to make the donation in the first place. Um, if you let’s say your mission is brought enough that enables you to to send relief of some type teo outside your state way. Have i heard rumors about these things, like charity registration laws and such on other other operating rules that require you to be registered before you start working in another state? Yeah. I mean, that part of your area of expertise, teo. Healthy? Yeah. You’ve got to be careful if you can actually do programmatic work or have boots on the ground in the foreign state you may need to be qualified to operate there, so there may be some additional filings that you need to do again. If you’re you got a limited presence, nobody gets hurt. Nobody complains regulators within that foreign state are probably going to be happy to have your help in the event of a disaster, and probably the risk is going to be low. But what if somebody gets hurt? Yeah, that’s, that’s where you could get in big trouble and when you’re raising funds from a new area, so if you if you got boots on the ground in texas but you’re in new york or california charity and you’re not registered in texas, what if somebody starts to complain about why isn’t my money helping those? You know that i intended to give two? What are you doing with my money? And they start to complain to the attorney general in texas, that might be an issue if you don’t have a good explanation for why you haven’t registered in, perhaps it’ll be a slap on the wrist, and they’ll just tell you, teo, teo, register now and maybe give you a small penalty but if somebody complains loud enough and you you really haven’t been responsible with that money that that could get you into some big trouble. Understand? On dh, why and why take the chance you it’s just it’s. Just not the way to operate. It’s, time for a short break. Jean, please indulge me. We have a slightly different format. Now. Pursuant they’ll help you find your existing donors who are hiding in your file. The ones who are prime for upgrade how do you identify them? And deep in your relationships, they’re free. Webinar is find hidden gems lurking in your file aptly named it’s past eleven, or is over. So why am i talking about? Because it doesn’t matter if it’s over you watch the archive just like non-profit radio it’s the same thing, so it doesn’t matter that it’s past. You will find the archive at the non-profit radio listener landing page tony dot m a slash pursuing also they have a new content paper for you and that is twenty seventeen digital year end fund-raising field guide, which are the channels and advertising strategies that give you the highest return on investment. How can you tweak your year end campaign based on your donor expectations and what are the insider tips on digital fund-raising from some of the biggest non-profits i think you’ve heard me say big non-profit ideas for the other ninety five percent. Here you go. The weapons are in the paper or on the non-profit radio listener landing page. Tony dot, m a slash pursuing capital p now i want to get back to jean talking disaster relief. Thank you for that indulgence. Gene. Um, let’s, let’s continue. So i was just saying that you know, it’s, why? Why put yourself at risk? It’s just it’s not what you’re bored should be advocating it’s, not what you should be pursuing if if if you don’t belong there because there are alternatives, i think that’s absolutely treat, ernie, i think you know, not just in terms of the filing, but in terms of whether you have the infrastructure to actually do work over there and whether people donating to you in a foreign state is the best use of charitable money to get relief down into that state is another question you have to think about. So would it be better in certain cases for you say, hey support one of our, you know, charities that we’re friendly, whether we have a relationship with in texas, for example, for hurricane harvey relief, why don’t you give to the community foundation of houston? They’re they’re a great organization. They know you know what they’re doing, and if you have a pre existing relationship with that organization or you vetted them in the past, maybe it’s better to have your donors give directly to them rather than to you and for you to figure out howto fund-raising in texas? Yeah, andi let’s think through what you’re committing, teo again, the motivation is purely altruistic, but what you’re getting yourself into in terms of logistics, you know, if if you’re not on a lot of a lot of drives, i see are not for cash, but therefore things that people need clothing specifically and or maybe housewares and things. Now you’ve got this truckload of stuff, not near where the disaster is, you know, it’s not so easy to get truckloads into a disaster zone. I mean, think about you have to think about what you’re committing yourself to absolutely, and it may cost more to transport those non-cash in that foreign site, then it then the materials are worth, in which case the health is almost useless. You do have to be careful. I don’t want to completely discourage e-giving good like food and clothing. Sometimes that can be helpful. But if that’s really true, when you’re local to the disaster, you’re far away. Cash is so much better. Yeah, because of that logistic concern and all right, so you mentioned, you know, potentially partnering with a charity that that you’re familiar with and directing donations there. What about what about you, fund-raising would you be allowed to fundraise and then give all the cash? Let’s assume it is cash now because you’re distant to the to the charity? If if that’s not within your mission. No, i guess not. Then, right? Yeah. It’s. Not within your mission’s. Kind of the same thing again. The risk is probably low if it’s new money. So you know, if you have a broad enough mission or if you could see that there’s no geographic limitation in your mission. For example, if you’re like a humane society or s p c a. But you don’t say exactly that. We only help people who are for you. Know animal welfare in new york, perhaps then you can you can start a campaign to provide for support of for animal welfare in these disaster stricken regions. Um, and and you can do it through through grants a cz well, tony, so you can raise money from your own donors who are interested. As long as you’re very clear about why you’re raising that money and that it’s going to go to the to the disaster stricken area rather than been locally, you’re clear about that. Then you might find that that partner, charity or potential grantee with which to give that money to rather than try to start a new program, a relief program, it somewhere where you have nobody there. Okay, okay, um and there is ah, resource i’m aware of if you don’t have some kind of partner, really pre existing partner relationship. Charity navigator is very good about being proactive in the face of disasters. I get their emails and they’ll put up a page with charities that they have vetted and redid highly. That there is that our local to the disaster area. So that’s a that’s a method i mean it’s designed for individuals, but certainly a charity that wants to do this work and find a partner, and they don’t have one you could use the charity navigator resource is yeah, i mean, they’re they’re different ways to vet potential grantee charities and the more money you’re going to send, of course, the more vetting that you would be expected to do charity navigator can be a helpful resource is resource for charity’s looking for, for donating, for maximizing their effectiveness and efficiency, and hopefully avoiding any scam charity second about the sad thing is, whenever disaster hits, you get a number of scams that are out there that proclaim themselves to be true charities, and perhaps they even have five, twenty three status, but they may not really be doing the work that they’re doing. So you do really want to be careful, especially as a charity, you know, who should be the great example to its donors that you know howto that e-giving and ensuring that charitable funds are properly spend it. If you’re the bad example than have what donors trust, you know you you want to bet them very carefully. So do you think charity navigator is not? Sufficient for a charity vetting another charity correcting it depends upon, you know, upon all of the circumstances. So if if you’ve got a huge grant to make, then probably want to do a little bit more work than that. But if you’re you know, you’re going to give ten thousand dollars to hurt, you know, for hurricane released in charity navigator recommends community foundation there. I think you’re pretty safe. Okay, okay. Um, and you need to be careful in your in your materials if you are goingto be encouraging these gifts that you are targeting a charitable purpose. Ah, charitable class of people and not a subset or some certainly like a family or something. Yeah, and that gets really tricky because, you know, individually, you know, we may go. Oh, my gosh, i know somebody in puerto rico, and they could really use the help so i’d leave my charity to direct money towards maybe another charity in puerto rico. But maybe i’d actually like to direct my money straight to this family because they just got this really compelling case. Oh, and i put up an ad on my website looking for my donors in california. Uh, to give money to help this one family in puerto rico? Well, if the donors are making the gift and just using the charity as a conduit to get it to individuals specific individuals that are named, then that gift is not tax deductible. It’s not considered a charitable contribution, it’s as if they gave directly to the individuals that they’re trying to get their money. Teo and if the charity, all they do is act as a conduit and that’s that’s going to be problematic, and if the charity then give the donation receipt to the donor thing that your your your money is tax deduct deductible, despite you directing it towards individuals now i can get the charity in trouble so different ways to do that, but a lot a lot of people are getting that wrong where a lot of charities, they’re getting that wrong and have to be here. Yeah, right, so we’re talking about charities. I mean, if you as an individual have family in florida or puerto rico and you want to do something as an individual, then you know we’re not we’re not that’s, not what we’re talking about because you’re not. Claiming that the gift to you will be examined our deductible from federal income tax, right? So by all means you should you should support your family, members of your friends that are there that are hit by disaster and don’t want to discourage that at all, but if you’re trying to give to a charity and get a deduction for it, then then you’ve got to think about making sure that you’re not using the charity just to the condom. And charity has to make sure that it doesn’t allow itself to be used just to the conduit, although i should add that the charity might add examples of individuals that helped. I say we help all of you know, we’re helping all of these families, including be specific ones, make your donation and trust us to put it to bed. Yeah, well, that’s, you know, of course that’s just that’s very good storytelling and good marketing is toe personalize your your broader work t the individual level, right? We’re not talking about that. We’re not talking about your your what? Your marketing, but what you’re claiming we’re their money goes, is not to that family that you just highlighted in a you know, a very touching video. That’s that’s what? That’s. What we need to avoid, right? Okay, so since we’re talking about individuals, what about individuals raising money for a charity? Weii, we see some of that. We see a good amount of that. How does that work? Yeah. So that’s that’s always tricky. So a lot of charities don’t like it when individuals are starting to raise money for them because the individuals may say different things about the charities, some of which may not be true. Um, and the individuals maybe raising money that go to themselves first. And perhaps they’re going to give some or all of it to the charity. Charity has no control of that if the money is going to the individual’s first, uh, also, the donors who gave to that individual won’t get a charitable deduction for giving to just another person and not giving directly to the charity. So it becomes if it’s done informally like that. Like you just all give money to this one person and this person, then you know, who’s promising to give it to charity actually does give it to charity. Well, that person gets a deduction, but all the other people that donate it to that one individual don’t get it right. And that person gets a deduction for all the money that was given to him or her because those were a gift, right? Because those were gifts to an individual and that lets you use may. So i collected ten thousand dollars in gift those were those were just personal gift from person to person on dh if they go over the gift threshold and they may have to pay, then people have to pay a tax, but we’re not going that high, so let’s, say, an aggregate from, you know, fifty friends. I collect ten thousand dollars, i think. Give that to a charity, aiken aiken claim a ten thousand dollar charitable income tax deduction, assuming i meet other limitations and, you know, exempt things like that, but generally, i could claim that deduction for the whole amount. Yeah, you might be able to the charity may not know that you’ve collected it from other individuals. They just hey, we got a ten thousand dollar gift receipt for ten thousand dollars. Thank you very much. Um, on the other hand, you know, the friends that gave the money to you if they hear about this, and especially if he didn’t give all ten thousand dollars right charity? But you said well, and i had three thousand dollars worth of travel costs in my time we had overhead, right? Right, yet that’s going to upset a lot of people that’s the wrong way to do it, but there is a right way to do it. So so if the charity authorizes an individual and you know, the charities will naturally authorize own employees to fundraise on behalf of the that the the organization through, you know, the organizational means, like the website and fund-raising events and all of that, if their sanctions but, you know, they could make unauthorized volunteers to fund-raising a swell and boardmember zehr often fund-raising on behalf of their charities, you know, as individuals who are authorized to do so? Sure, but they’re not collecting the money directly themselves or if they’re taking a check, they’re immediately giving it over to the charity, and the check is going to list the charity’s name on it? Yes, right? Okay, okay. Let’s. See where? What about what about helping businesses can can a charity fund-raising help businesses that air devastated by a disaster? Yeah, it’s a good question, because some people go, can i make a grant to a for profit organization that kind of kind of strange but charity’s can engage in grantmaking or, you know, providing assistance to businesses in different situations, and this plays out a lot in disasters in the event of a disaster. So if the business owners are it’s a small business, a mom and pop store in the mom pop are are needy and distress as a result of the disaster. After that, business might be their lifeline, and providing assistance to the business in that case might be fine. It also might be finding a broader sense if the community was deteriorated as a result of a disaster. So investing in economic development and combating community deterioration and blight, that’s all charitable purpose. So as long as again it’s within your mission to be able to give such support, you could do that also lessening the burdens of governments of the government says this is something that you know is public works we need toe, give back and develop our small business community here. That got terribly hit by the disaster. If the government is doing it, probably used tenants. Okay. Would that include infrastructure repair, too? Yeah, it would. Okay, so all sorts of things that you could do, you can you can help building costs, rebuilding cost. The one thing is, you know when to stop when that bible that’s probably the time with charitable. Okay, right. We don’t need to be buying partnership shares in the private in the privately held company. Okay, we’re buying in. We’re going to go. We’re going to become general managers of the llc. Alright. That’s beyond the pale. Okay, hyre now, there was something pretty high profile talk about individuals. I know you. I think you know, i don’t know much about sports but this there’s a guy named j j watts and he plays one of the sports balls. Hey, does something in in sports hey raised thirty seven million dollars for orm. Or maybe you think it’s still being counted for harvey relief in houston through his foundation. But there’s a lesson there that you want to talk about? Yes. What is? Football player with a very, very popular what? I called him what’s i’m sorry. Does your watts restaurant? I don’t even know whatever he plays baseball with j j watt. Pardon me, mister. What? Okay. Pit so and very compelling figure. And he made an appeal after hurricane harvey to collect money raised money for relief in houston. And, you know, at first, you know, his ambitions were very small. I think it was even less than a million dollars that he was hoping to collect to give back, and he has a foundation. So a fiver onesie three foundation that he runs, and they i think they’re really focused in on sports programs for children. But he heard about that, you know? Well, didn’t hear hear, just hear about it, but he, you know, he was in houston, so he was just well aware of the hurricane in the immense damage that it has done, so he wanted to make a difference. So he went on to a crowd funding site called you caring. Uh, and he wanted to raise money. So my wilson here is he did, you know, top thirty seven million dollars, and i think he stopped the campaign right now, but this is a foundation that was very small, it and i applied his efforts and believe me, you know, he probably raised by that otherwise might not have been raised. So for that that’s fantastic. On the other hand, i don’t know that his foundation really had the infrastructure and was prepared to do relief work in all of the sudden they have thirty seven million dollars, they don’t know how much staff they had don’t know how much expertise they had in this area. So there you know, there’s, some criticism, and i think disaster relief. Oh, and charities are likely to face criticism right away because getting aid to the individuals is very difficult to do and having a plan to do it. It is tough, it’s hard just to give to anybody who puts their hand out and although you want to that’s not the responsible way to do it, so they’ve got to come up with a plan if they’ve never done it before it’s going to take more time for the plan. So i think the lesson there is just in terms of figuring out again, as we said. Before, if you’re a foreign charity coming in, if this isn’t the work that you do you want to think about, you know what the best way to make use of that money is? Perhaps, if you, you know, i had been the figurehead for a campaign by the community foundation, or he decided to give, you know, the money he raised to the community foundation that’s actively involved with multiple non-profits on the ground, working with smaller communities in that area that could get the money to the people who needed it the most, or or you know, the the need to address the needs right away might have been more efficient. So i think that’s the one without wanting teo, criticize the foundation itself, and j j watt, you know, participation in doing tremendous work, it would be great to see the money just really effectively and efficiently used and not for building brand new infrastructures in a brand new area of charity that an organization has never done before. And i want to credit eugene with something that you alerted me to in las vegas. The clark county commission chair was raising money, and he was not. Clear where the money was going until you jean takagi i asked about it and then and then he became transparent, so unfortunately have to leave it there. But credit, credit hat’s off to you, jean, for in increasing transparency and fund-raising we’ve talked about it so many, many times. Congratulations for that. Okay, what? I’m not sure packing climb full credit, but i’m glad that that they responded alright. Small victories jean takagi he’s, our legal contributor managing attorney of neo check him out at non-profit law blogged dot com and at g tak thank you for so much, gene. Thanks, tony. My best. Thank you, pat. Clemency and your event pipeline coming up first, wagner, cps there’s so much more than just cps way beyond lots of added value, they do go way beyond the numbers. They’re true to their tagline, major gift, best practices and common mistakes. It’s, one of their archived webinars, covers five best practices and five common stakes equally balanced. See how they do that it’s like a balance it’s like thea it’s, like the assets have to equal liability snusz owners equity it, see how balances five and five but then they add the single most important thing you can do to have a more successful major gift program, so if you’re thinking you’d like to beef up your major e-giving program or benchmark against others, get some outside perspective, perhaps on your fund-raising never hurts to have ah, fresh set of eyes and and ideas lofting over what you’re already doing. No need to sign up. No need to register it’s archived. Watch it right now, it’s the major gifts webinar and it is that wagner cps dot com click resource is than webinars to browse everything, everything else that they have ah quick resource is and then you see the full collection there blawg other webinars and those guides that you’ve heard me talk about world. The templates and sample policies are that’s all under guides, so check out wagner cps dot com resource is and then go to town apolo software you’re non-profit but what kind of accounting software using using software made for business and i never gave this a moments thought never inside my ken i liketo work that word, kenan whenever i can into ah, until conversations it was never within my cannon just like that word. Can um, but when apple is became a sponsor, it seems to make some sense you need accounting software that is made for non-profits that’s what you are and his age of niche software, and help us a knish knish and i’m not comfort with can i like a lot niche it’s a little affected? Try to stay away from that in this age of niche software, you deserve it. So whether using quickbooks or terrible cash or one of microsoft products or sapi whatever super duper whiz bang books, whatever you’re using, those are for business except the well. The super duper whiz bang books is not for business, but if it did, if there was such a thing as a super whiz bang books, super duper was bank books than merely about duper. Then that would be for business. But you’re non-profit so take a look at apple owes accounting it’s accounting software designed for non-profits and to find them you go to non-profit wizard dot com now time for tony’s take two i did a video on something that i learned so far from my mom’s death earlier this month. The importance of end of life planning my family is so good, and i am all of us or so grateful that she died quietly in a hospice very soothing pastoral place. I’ll shout it out, vilma re claire in saddle brook, new jersey, where they do comfort care and they understand managing management of pain. It’s on twenty five acres and there’s trees and the rooms are beautiful and not sterile like a hospital, which is not to put down hospitals but totally different missions on dh no alarms, chai ming and beeping and people scurrying in the hallway. Not like that at all. So ah, hospice hospice planning. I’m encouraging you to give thought to your own or your family members end of life planning it’s just it’s it’s got new importance for me, and i could see the value of it for my mom, for our family to mean hospices for the support of the family, just a cz much as the patient, so end of life planning. Take a look at the video it’s at tony martignetti dot com i’m sure there’s a lot more than i have to learn about my mom’s death that this is what i’ve got so far that was tony take two let’s, take a look at the live listener love where’s it going out is going out to ann arbor, michigan, woodbridge, new jersey and woodbridge. I gotta compliment you, woodbridge. You’ve been very loyal. Uras loyal is seoul, south korea, so woodbridge special listener love live listen, i’m about to you. Tampa, florida, staten island, new york, delmar, new york. Oakland, california. Los angeles, california, california. Of course our thoughts while los angeles in the south, but oakland near the devastation, as gene and i were talking about live love to all those locations and live listeners. Let’s, go abroad to germany, we can’t see your city, but gooden dog nonetheless federal, argentina, hanoi, vietnam vietnam has been occasional, but not too much glad you’re with us. Hanoi thank you, live love to you, seoul, south korea, on your haserot comes a ham nida and san pedro, san pedro, costa rica i might know some people in some pedro i know some people in costa rica. I wonder if that could be sheri and ah, shari and gary. Live love to san pedro, costa rica affiliate affections. I feel like going out of sequence. So what? You gonna beat me up for it so grateful. Lots of affections to our affiliate am and fm listeners. I’m so glad you’re with us and the podcast pleasantries to the over twelve thousand so glad that you are with us the bulk of our listening audience. Thank you, podcast listeners pleasantries to you. Here is pet clemency with your event pipeline welcome to tony martignetti non-profit radio coverage of fund-raising day two thousand fourteen we are in times square, new york city at the marriott marquis hotel. With me now is pat clemency. Her seminar topic is the event pipeline turning event guests into major donors. Pat is president and ceo of make a wish metro new york and western new york kayman c welcome to the show. Thanks, tony. Pleasure to have you you have a pretty desperate territory new york city and western new york it’s an interesting territory, but i think it really is empowering in the sense you get a chance to say all sorts of markets in which you can raise money and it’s really the opportunity to understand how donors react in their markets. And and you know what? The universe was they? Won’t want to make a difference and how far west does western new york go in your we cover the major cities of buffalo and rochester seventeen counties it’s just go over to buffalo. It does. Okay, so we don’t have the middle of the state, but we have a new york city in nassau county and then seventeen states counties upstate. What do you see that non-profits are not quite getting right around events and transitioning donors from events. Well, i think, you know, we all start with special events. I mean, there’s, no question about it, i think it is the recognition that there is a discipline that can make those events were quarter and smarter and are part of a major gifts strategy if we see it as an event that we efficiently come into and go out of without seeing its capacity to build a pipeline of donors for other kinds of fund-raising particularly major gifts, i don’t think we make it a lot of candy, so today we really talk to have great dialogue around the issue about some of the things that we can do to make a special event three distinct parts it matters deeply what we do before going into the event, we’ll talk a lot about planet, but planning in a different way, that really makes us understand who is coming, who are the prospects the day of the event? How do we really connect the donor’s? Not just with the event, but with the mission and how they can make a specific difference and how we then engaged him in the journey, not with the event, but with the organization over time. It’s really the third ingredient in and so it really is very helpful to think about it as more than simply even itself. I’m gonna ask you to talk even closer to the mike because we have now we have the background noise because lunch lunch is over, so stay nice and close. We don’t pick up too much outside background noise. Well, let’s start with the natural place of planning. What? What should be redoing as we’re planning the event to be planning transitioning hyre attendees to teo to our donor ranked i think wolber too often we start berkeley just a rather than the strategy. What are we trying to do? And who are we trying? To attract and we also need to cast a wider net if you think of the donor pyramid. I mean, we’re looking at our past event guests and hoping people who will be new to the event will also come, but we’re not looking for the clues that people give us. And so we found there was great opportunity looking at direct male donors give one hundred dollars more, and when we did some wealth screening, we found out they gave us one hundred dollars, not because that was their capacity, but we had a box and they checked it and they gave us one hundred dollars, but we understood it. When we looked at it, they had so much more capacity, but we never got around to asking them. So looking a little bit more broadly and thinking about the strategy of engagement, we basically said, if you look at an event just as a single time, we’re going to invite him again next year. But if we look at the event and over late, a lot of the major gift strategies we have the ability to change the whole dynamic, your royalty won’t be that the event it could be that the institution and would be a longer term engagement if we get that right in the planning stage. That’s what we want, right? We don’t want just coming up year after year, and does this include people who come? They may only come one time because there connected with the honoree or just a friend of the organization brought them way convert those kinds of people. Well, you know, it’s very interesting we learn a lot from our buffalo rochester offices because they have a very different evergreen strategy. Honorees are looked at differently than we look at them in new york city, and they are on it for body of work. So as a result, most of their strategy is thinking about how do you get the same donors to renew at higher levels each and every year? So now we’re beginning to implement that, saying, regardless of the honoree, how do we get more of our sponsors to renew? And then for those one time donors who come because of a gala honoring, we need to do some more screening and think about who else in our boards within the make-a-wish family knows them, so that the relationship can transition to the organization, not simply around the honoree. What else can we learn from rochester and buffalo? Well, you know what i think it is? The universal is people want to make a difference, and we just have to make sure that we’re not leading with what we need. But we understand that the first conversation is the donor’s needs, and the donor wants to be able to make a difference how our job is to take them on the journey by showing them how treating them like an investor. And that is a really key difference. Very often we ask for what we need, and we never think from the donor perspective, what about the organization will really resonate with them for the long haul? Do you really feel that upstate or western new york is better than downstate new york at this? No, no, i mean, they they’re scale is very different than ours. I mean, it’s, a smaller scale. But we i think the best thing about fund-raising is if we are open to understand the best practices exist everywhere they learnt from us. We learn from them and i think it’s. Fine, but i think the interesting thing is in every market, if you begin to institute this practice of looking at a bent donors not just as jonas sporting event on an annual basis but really, truly look at it as a pipeline wei have seen donors seventeen hundred dollars to ten million dollars or from our five thousand dollars to five hundred thousand dollars. It isn’t a journey overnight, but the fact of the matter is some of our very largest major gift owners. Their entry point was at an event it was how we dealt with that that made all the difference as to whether or not that became a continued transaction. We sell a ticket, you come to our event or if it really became a transformational relationship with the mission of the organization, are there other specific things that we should be doing in our planning? Aside from the concept of the lifetime donor, the longer term relationship? Are there things specific to a no to the invitations? Who invites them? How they’re invited before the event? What else should we be doing specifically? Well, we began talking about if we were to really make this part of our major gifts strategy, what are the shifts that we need to make? And when you think about it, our invitation is to an event we needed teo even change the messaging we’re not just inviting you to invent. We’re inviting you to share and join in this extraordinary mission and that’s very subtle, but it’s a very big difference. And so we even change the fact that when you come to a gala is a perfect example. Think about how we spend the first hour at cocktails just kind of wandering around. Instead, registration is outside, so the minute you enter the doors, you are coming in and part of a community of like minded people who believe that this is some of the most important work we can do for kids. And you are meeting wish families and volunteers on board members course searching you out as a guest that evening, in that first hour becomes a really important message about we welcome your involvement in this remarkable work. How do we convey that message in our cocktail hour? Well, it’s really about storytelling and changing? Who tells the story? So if you think about it very often at a gallop, whether it is during the cocktail hour, it’s during the main speeches of the night, putting up the ceo, they’re putting up the board chair. We’re talking about the past. We’re actually talking about statistics and how much money we raised in our case, somebody wishes granted when we change the dynamic of who the storyteller wrists really should be the people who experienced the mission first hand and as we tell the story through their eyes, it says to a donor here’s exactly what your donation would do here’s exactly how it makes a difference in that moment for a lifetime that’s a very different relationship from the beginning of the point where that donor enters the gala, if we’re going to focus on storytelling at our events and it might be a very big one memory big gala or might just be a smaller could be anything smaller, gathering, maybe even a meeting. Absolutely we need thio sounds like have a very consistent message that the leadership is conveying that trickles down to all the employees and then also the board is conveying right when we need to have consistency and messaging well. You don’t have consistency in a couple of things. I think you have to have consistency and messaging for sure, but you also have to build a culture where the board and the staff are engaged in thinking about who’s there, you know, there’s, not a throwaway seat in any event, and when you think that it matters most, there is a greater level of engaging on the part of the board in the staff pretty work that gets done who’s at those tables who should we know how we welcome them? What would be important to them? And it allows boards to be successful? You know, something tells me you’re from boardmember i’ve given you every contact i have there’s, nobody else i can approach hold this empowers boards to reach out to other people that the organization knows and be champions at night for the cost. So there are signs that we’re assigning people, too, to meet specific people during the evening during the event absolutely and beyond that, you’re the eyes and ears. Every single person has a role, kind of just surveying the room and learning what what they’re hearing that night and reporting it back. So, justus, we schedule an event on a day before that event takes place. We also have the debrief date by which boardmember volunteer staff get together. What did you hear? What did we learn? In very often? One piece of information about somebody was in the room is magnified. Then buy another piece of information and out of that then becomes thought. Okay, the event is over, but it’s only really big beginning in terms of engaging that donor long term now in the life of the organization and so part of the debrief is what’s next. What are some of the opportunities? And you’re right, we have to be on the same page. If someone were to say to us post event, i’d love to be involved how you have to be able to convey what the options are many and there’s not going to be one that works for everybody. But everybody needs to know here some of the ways that you could be involved in an ongoing basis. So we’ve transitioned from beginning the planning stage two day off now, or we’re at our event. What else? A little bit there. Sorry, that was allowed. What? Else should we be thinking about oh are executed the day of to create this transition? Well, i think the other thing that you could do very, very well is start with the strategy what’s the message that you’re trying to convey that should be the threat of connection to everything that’s being done that night and for us was really talking about the ripple effect of wishes in the ripple effect of wishes is a moment in time, yes, but it also has a lifelong impact. So one of our speakers was a thirty five year old executive with a wall street firm. He was a wish child seventeen years ago, and so the impact or him wass it had a ripple effect through his life. The life of his brother, who they really had a hard time when he was diagnosed with cancer. As the family would tell you, everybody’s diagnosed cancer, you know, said everybody has cancer feels like and so the threat of connection of his wish was in that mama with his brother. But it was also over his life he became a wish raining volunteer helping others but imagine his role now explaining to people in his way that this investment that you will make tonight in support of this event, hasn’t it has an impact come on the future generation of kids who are just like me, that’s a that’s amazing way to tell the story. So the first part is what we’re trying to do. We’re trying to show the ripple effect over time, cross families in communities, and so all of those voices were part of the program that once that strategy is that you can always worry about the logistics next, but you’ve got to get that piece of it and too often in event planning for the night of we think about the logistics, but we haven’t really thought about the strategy and that that’s, what we lead with and that story telling is is just a one part of it. Next is if you’ve told the story, then you’ve gotta provide a tangible way for people to make a difference, and so we don’t. We do a lot of fund-raising at night, but its not around an auction for things. We had one great item this year, and the rest is all about an auction to allow people. To sponsor wishes and that’s the meaning of it. You go from the programme which told the story from the perspective of families who have experienced it and then give people the opportunity to share in joining the mission by sponsoring future wish it was incredible to watch the little store ones, and some don’t respond to the wish. A season for wishes any or twenty five thousand dollars donation in the room, about an individual wish, right down to a thousand dollars and watching the room right up every time somebody was part of the community that was making a difference was really an extraordinary thing. It allowed people to know that this was a really special thing, that in this time in place, we’re all making a difference. We got to take a break, tell us credit card and payment processing. How about a passive residual revenue stream that pays you each month? You can check out, tell us payment processing, because that’s, what this is going to mean for you as one of their partner non-profits, you will get fifty percent of every dollar telling skits, half of what they earn from the businesses that you refer. Goes to you and they have this incredible offer that is only for non-profit radio listeners you refer business, they’re going to look at tell us, is going to look over their processing fees and determine whether they can save the business money if they can. Then of course, that business hopefully we’ll sign up with tell us, because that’ll mean a revenue stream for you. But of course, you know that’s up to the business. If tellers can’t save them money, you get two hundred fifty dollars, tell us cannot help them by saving them fees they’re going to tell us is going to give you two hundred fifty dollars. So who is this apply to think about businesses that you’re boardmember zone local merchants that maybe the local dry cleaner or maybe a car dealership or it could be a target store? Whoever it is, local merchants supporting your work? Um, restaurants, dealerships, maybe i mentioned car dealerships of storefronts any kind? Independent artists, your family members, anybody that takes credit card payments. If tell us can’t save them money, you’ll get two hundred fifty dollars, and again, if they sign up with tell us, you get half the revenue each month that’s the continuing residual revenue stream. Check out tony dot, m a slash tony tell us that’s the only place where you going to find this two hundred fifty dollars offer now, let’s, go back to pat clemency. I’m going to ask a little just sort of a digression just about the logistics of that that auction for wishes. Did you have people predetermined that would that would be bidding on on any of the any of those auctions and those wish auctions way we thought about was, how could we make it? And i don’t mean to suggest the whole thing’s really know. Not only did you have one or two people who you knew would get the ball rolling, they were all legitimate that’s we wouldn’t do that, but but there’s a couple things that we were able to do before tony. So three board members came forward and said for new donors who never made a donation before to make a wish, the ability to come and make a difference for a child that’s a pretty important thing. But how much more would they feel the impact of that initial donation if we came up with a challenge match, so three of our board members got together and one hundred and seventy five thousand dollars was put up in advance. They pledge this and they would match donations of two hundred seventy five thousand, so that was a huge thing. We also knew from a couple of donors at the wish auction for somebody who couldn’t be at the gala, they were out of town was still a way to participate, so for people who weren’t there and want to participate that’s part of our culture now you always have this opportunity give even if you can’t be there. So we knew a handful of dahna they do it’s what you do for the ones who couldn’t be there, so they have already pledged it, and they made that commitment right before, and so we let people know that we were able to do that. Those two things are done in advance. We know that if if people know that the donation they make is going to be doubled there’s a likelihood that they’re going to give a little bit more on dh, then the other one to find a way to let donors who just can’t not be there that night. How else could we participate when it’s about wishes anybody can participate? And i think that helped a cz well, so that’s kind of the two things we know going into the night come and way announced to the audience and then the third part of our trilogy stories after the event, what do we need to be now? Follow-up should be planned during planning, right way we should be thinking about what our follow-up is gonna be while we’re doing the advance planning it is, but we’re hearing a lot that night, and you’re understanding what the individual journey might be for donorsearch we can talk about own overall strategy were also listening to the donors needs as well, and that we hear that that night so that’s that’s an important thing. But, you know, i i think there’s a couple of great examples, our ten million dollars donor started out as a seventeen hundred dollars, went on. He bought tickets to a mets game where they were doing a benefit for make a wish and to see the journey after some of the events, it was where he got to the traditional stage was when he was able to make a difference for the individual wish kids. So he began to grant wishes and then began to think, well, if i could grant a wish, i wonder if i could do more. Then he began to grant a wish a month for five years. Sixty kids, when you think about that and that his attitude wass but i could inspire others by this, and i have to lead by example. So in his office building, he took down some of his paintings and put up something that we have designed, which was simply a tree, acknowledging those wishes that have been granted so simple. First name of a child and a wish. And when you came up into his lobby, you immediately saw that this was somebody who was champion the cost. So he then, as he got closer after after having been an event donor now he’s making a difference for children. And so when it became time to start thinking about the next generation wish children, you know, in two thousand thirteen, we were thirty years old and we had grand on ten thousand wish and we had a big bowl dream for the future. We want to grant the next ten thousand wishes because we understood now importance and impact. I want to grant those ten thousand wishes in a decade. Well, how do you sell somebody on a big, bold dream? Will you go to your best investors in the cause? And he said, well, i like to give you a down payment on the future. And that became the largest individual gift in the history of make-a-wish worldwide from an individual. And think about that for the for the future of this organization. You know, here was somebody who went from seventeen hundred dollars, two. Ten million. But it was never about ten million dollars for hemos about the ability to change ten thousand lives. So you think we moved from transaction? You know, i give you tickets to this event because you gave me a donation moved to the transitional stage where we could say thank you for making a difference for that child to the transformational stage would thank you for making a difference for the future of the mission that’s where the journey goes if we take our special event and understand that each of those stages the preplanning the night of and what happens after are all distinct but equally important segments that can help that donor journey. Okay, we still have a couple of minutes left. Anything you want, teo. Hopefully you do have something you want to share that we haven’t said yet. Well, i think, you know, one of the things that i was really struck by wei had our gala on june twelfth this year, and there was a couple who had come forward and they were security. They secure the honore, and they were great in helping support the fund-raising around ten. And as they thought about sending a letter out two people to solicit funds from business colleagues and family and friends, i learn a lot when you see the letters say, right? And this one just simply said we got involved with make a wish because we learned about Micah 6 year old who want to be a ballerina. We stayed involved because over the years, we’ve seen hundreds and thousands of kids whose lives have been forever changed, and what i realized was here was a couple who came to an event. Was a cultivation event just to learn about make-a-wish and they heard that story and that stayed with them, and now we have an event for which they were such an incredible catalyst as a couple raised one point, six million dollars the fund-raising they did was extraordinary, they’ve been doubted wishing for security, and yet they never lost sight of the fact that it was at an event that was learning about that one child that touch them and made them want to do more. I don’t think i really understood that power of their motivation until that moment, but what i did but, you know, that’s, the discipline that we need to put in place, that’s the story telling you a story telling all the way in which we don’t look at this as a transaction it’s so much more an event can be so much more and could be such a powerful part about how we welcome donors into the extraordinary missions that we all support gonna leave it there. Ok, tony, thank you. My pleasure, pat clemency. She is president and ceo of make a wish metro new york and western new york and thank you. For bringing lessons from rochester and buffalo. Thank you, my pleasure or listening to tony martignetti non-profit radio coverage of fund-raising day two thousand fourteen. Thank you so much for being with us next week. I may do sexual harassment in non-profits may check that out. Spend some time with that. If you missed any part of today’s show, i’d be seat. You find it on tony martignetti dot com were sponsored by pursuant online tools for small and midsize non-profits data driven and technology enabled pursuant dot com wagener cps guiding you beyond the numbers wagner, sepa is dot com appaloosa counting software designed for non-profits non-profit wizard dot com and tell us credit and debit card processors you’re passive revenue stream tony dahna may slash tony tell us our creative producers claire meyerhoff sam liebowitz is the line producer shows social media is by susan chavez, and our music is by scott stein you with me next week for non-profit radio big non-profit ideas for the other ninety five percent go out and be great. What’s not to love about non-profit radio tony gets the best guests check this out from seth godin this’s, the first revolution since tv nineteen fifty and henry ford nineteen twenty it’s the revolution of our lifetime here’s a smart, simple idea from craigslist founder craig newmark insights orn presentation or anything? People don’t really need the fancy stuff they need something which is simple and fast. When’s the best time to post on facebook facebook’s andrew noise nose at traffic is at an all time hyre on nine a, m or p m so that’s, when you should be posting your most meaningful post here’s aria finger ceo of do something dot or ge young people are not going to be involved in social change if it’s boring and they don’t see the impact of what they’re doing. So you got to make it fun applicable to these young people look so otherwise a fifteen and sixteen year old they have better things to do if they have xbox, they have tv, they have their cell phones. Me dar is the founder of idealist took two or three years for foundation staff to sort of dane toe add an email address their card. It was like it was phone. This email thing is fired-up that’s why should i give it away? Charles best founded donors choose dot or ge somehow they’ve gotten in touch kind of off line as it were and and no two exchanges of brownies and visits and physical gift mark echo is the founder and ceo of eco enterprises. You may be wearing his hoodies and shirts. Tony talked to him. Yeah, you know, i just i i’m a big believer that’s not what you make in life. It zoho, you know, tell you make people feel this is public radio host majora carter. Innovation is in the power of understanding that you don’t just put money on a situation expected to hell. You put money in a situation and invested and expected to grow and savvy advice for success from eric sabiston. What separates those who achieve from those who do not is in direct proportion to one’s ability to ask others for help. The smartest experts and leading thinkers air on tony martignetti non-profit radio big non-profit ideas for the other ninety five percent.