Nonprofit AF

Exploring the fun and frustrations of nonprofit work

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Foundations, stop playing the reckless game of Funding-Chicken

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[Image description: A chicken with reddish feathers an a yellow beak, starting directly at the camera, looking very quizzical. Image by Hannah Oliver on Unsplash.com]

Hi everyone. Quick reminder: The second part of the Philanthropic Reforms town halls is today, 10/5, at 11am PT, where several prominent sector leaders will be exploring policies and strategies on foundations and Donor-Advised Funds to prevent wealth hoarding and tax evasion. This is the follow-up from the first town hall, which I moderated. Here’s the recording.

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Durfee Foundation President Carrie Avery and I were discussing over email the power dynamics between funders and nonprofits. While there is much to talk about, Carrie brought up a really good point that I had not considered before—the term “Foundation Program Officer” is weird:

“Why an officer? An officer makes me think of a police officer, a probation officer, someone in a position of power whose judgment can have a devastating and decisive effect. If foundations want to work with their ‘nonprofit partners’ then why is the person on the foundation side of that relationship called an officer? Language matters. Let’s start a movement to rename this role!”

I agree, and while we’re thinking about new titles, let’s completely reimagine what the role entails. It should be less micromanagey—like a boss who constantly watches over you to make sure you don’t steal office supplies—and more expansive, like a favorite colleague that you can commiserate with and occasionally play pranks on.

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It’s time to expand our perspectives and conversations in fundraising

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[Image description: Two hands, outstretched, holding a baseball-sized ball made of US money, including a $100-bill. This is the first image that came up when I typed in “fundraising.” Image by HeatherPague on Pixabay.com]

Hi everyone, a couple of quick announcements. Thank you to the 1400+ colleagues who attended last week’s webinar “What’s Broken in the Foundation and Donor Landscape?” put on by CalNonprofits, Community-Centric Fundraising, Nonprofit AF, Institute for Policy Studies, and Inequality.org. We discussed wealth hoarding, tax avoidance, and the problems with Donor-Advised Funds. You can see the full video here.

Next week, 10/5 at 11am PT, we have the second part of the series, focused on solutions, including potential policy changes. Speakers include Farhad Ebrahimi, Founder and President of the Chorus Foundation; Ellen Dorsey, Executive Director of Wallace Global Fund; Assemblymember Buffy Wicks (D-Oakland). The legendary Jan Masaoka of CalNonprofits will be the moderator. It will be good! Register here.

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Over the past few weeks, it’s been nice to see the Community-Centric Fundraising movement growing. The Slack channel has been increasing in numbers, along with the Facebook page, Twitter, and Instagram (I am not sure what Tik Tok is, but I think we have that too).

What I am especially thankful for is the content Hub on the CCF website, which produces new thought-provoking articles, podcasts, and videos each week, curated by colleague Stacy Nguyen. Last week, I read “8 ways to make fundraising more accessible for people with disabilities” by Elizabeth Ralston. One of the tips was “Include a physical description when you first introduce yourself […] this can really help a person with low vision have an image of who is speaking and in turn make them feel included as part of the festivities.” This was something I had never considered before. Thanks to what I learned, I have started describing myself in virtual events: “Mid-age Asian man with short unkempt black hair, thick black glasses, wearing a blue button-down shirt, and surrounded by a pervasive aura of vegan sexiness.”

We need to be honest with ourselves (and no, not about the pervasive aura of vegan sexiness). The conversations we’ve been having in the field of fundraising need to change. They are dominated by topics along the lines of how to retain donors, show more gratitude, increase planned giving, write better grants, which CRM is the best, etc. Often these can be boiled down to the overarching topic of “Tactics to help you raise more money for your organization.”

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Democracy hangs in the balance. Nonprofit and philanthropy need to stop being neutral.

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[Image description: A crowd at a protest. The person in the center holds up a sign that says “No justice, no peace.” Image by Clay Banks on Unsplash.com]

Hi everyone, apologies for the likely brusque tone of this week’s post. Like many of you, I am shaken by the death of Justice Ruth Bader Ginsburg; may her memory be a blessing. It is hard for us to celebrate the life of an extraordinary (and imperfect) leader when there are so many terrifying implications now that she is gone. Already Trump and McConnell plan to ram a nomination through, despite what they said four years ago about not confirming SCOTUS nominees during election years. The hypocrisy and moral bankruptcy are astounding but not surprising. We need to ensure Biden/Harris are elected and the Senate is majority blue, then expand the Supreme Court, set term limits, grant statehood to DC, pass the Voting Rights Act, end the filibuster, and get rid of the electoral college, among other things.

If you’re asking me why I’m talking about politics on a nonprofit blog, I need you to shut the hell up. Believing that nonprofit and philanthropy are somehow separate from or above politics is how we’ve been complicit in perpetuating unjust systems. And yet we keep doing this. Last week, I gave a keynote virtually where I reminded folks that kids are still in cages, that Black people are still being killed by the police, that Indigenous women are still missing and murdered, and that everything is still being controlled by rich old white dudes and we need to get more women of color elected into office. In the chat stream was a sniveling remark along the lines of “Wow, this presentation did not need to be so political.”

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Not showing the salary range in job postings is archaic and inequitable. So why do we keep doing it?

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[Image description: A magnificent grey/white winged unicorn, floating above the clouds, their wings spread in breathtaking splendor, their long silver horn gleaming in the sunlight, two front legs raised, wisps of ornately curled…smoke…coming out of their mane for some reason. Majestic AF! Image by KELLEPICS on Pixabay.com]

Hi everyone, quick reminder, if you’re free next Monday 9/21 at 11am PT, join me on this webinar to discuss wealth hoarding and tax avoidance. We’ll be focused on these questions: “What are the current rules governing philanthropy, especially foundations and donor-advised funds? How do these operate in practice? Are wealthy people using these vehicles to game the system?”

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Five years ago, I wrote “When you don’t disclose salary range on a job posting, a unicorn loses its wings.” This has contributed to some contentious arguments in our sector, namely about whether unicorns have wings. Since then, however, I’ve been glad to see so much progress being made. Many states now have laws requiring the disclosure of salary information, as well as to make it illegal to ask for candidates’ salary history. An increasing number of organizations in our sector, such as Momentum Nonprofit Partners and NTEN, have started requiring salary to be disclosed on their job boards. Meanwhile, across the pond, Show The Salary and other colleagues are publicly calling out organizations who still engage in salary cloaking, and to their credit, many organizations are listening to feedback and changing their practices.

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Wealth hoarding, tax avoidance, and how nonprofits are complicit

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[Image description: A squirrel, looking alert, standing among green blades of some type of plant. I think they’re a squirrel, but I can’t see their tail so can’t really be sure. Either way, this image has nothing to do with the content of this post. It is there to help calm you down while we discuss a serious topic. Image by JoeBreuer of Pixabay.com]

Happy September, everyone. Holy hummus, it’s September! Fellow parents with school-age children, I hope you are doing ok. Hang in there. We’ll make it through this together. When things get tough with virtual schooling, just remember the old adage: “The days are long, but the years are—You better not be playing Minecraft again! Get back to your Zoom class this instant or no media the rest of the day! And you! Those loose fruit snacks you found under the couch are covered with dust! Throw them away, or at least rinse with water before eating!”

I know we all have a lot on our minds, and unfortunately I must add one more thing for us to think about. Three months ago, I wrote “Have nonprofit and philanthropy become and white moderate that Dr. King warned us about?” Since then, I have been grappling with the question of how effective our work is as a sector. Are we actually doing good in the world, or have we tricked ourselves into believing that we are while in reality we’re allowing inequity and injustice to proliferate? The reality is that we’re doing both, and it’s important for us to untangle these dynamics.

Recently, I read the Gilded Giving report by the Institute for Policy Studies. It examines the trends in giving in our sector and what it means. It paints a picture that is not pretty. Here are several points we should pay attention to:

  • Starting in 2010, a bunch of billionaires signed a pledge to give away half their wealth. Since then, their combined wealth has actually doubled. From $376 billion in 2010 to $734 billion as of July 18, 2020.
  • Over the first four months of the pandemic, when everyone has been struggling, the 100 living Pledgers who were billionaires in March actually INCREASED their wealth by $213.6 billion, or 28%, from 758B in March to 972B in July.
  • Small individual giving has been in decline over the past two decades. Between 2000 and 2016, the percentage of households giving to charity has dropped from 66 percent to 53 percent.
  • Large gifts, however, have been increasing. Households making over $1M claimed 33% of all charitable deductions in 2017, up from 12% in 1995.
  • The number of foundations in existence increased by 68% between 2005 and 2019, from 71, 097 to 119,791. During this period, their assets more than doubled, from $551 billion to $1.2 trillion
  • Donor-Advised Funds (DAFs) have grown even more rapidly in number and assets. DAFs have no legal mandate to pay out anything each year. Donors take tax breaks immediately when they transfer their wealth to DAFs, but they are not legally required to actually distribute those funds to nonprofits.
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