Nonprofit AF

Wealth hoarding, tax avoidance, and how nonprofits are complicit

Posted on September 8, 2020September 11, 2020 by Vu

[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.

How philanthropy fails to support its greatest assets, BIPOC leaders, and what it should do about it

Posted on August 9, 2020September 10, 2020 by Vu

[Image description: A group of protesters, most are BIPOC, most wearing face masks. One person in the center appears to be talking on a bullhorn. Others are holding up signs. Image by Josh Hild of Unsplash.com]

Hi everyone, real quick before I get into today’s topic—since the launching of the Community-Centric-Fundraising movement a month ago, the team in Seattle has been excited but also overwhelmed by the incredible response from you all! Thank you for your patience as we sort out the logistics. More is coming, including a meeting to discuss the creation of local CCF chapters (it’ll likely be on 8/20 at 12pm PT, sign up for the mailing list if you haven’t so we can send you more details).

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A few months ago, I left my job after being an ED for 13 consecutive years across two organizations. “How does it feel to be retired?” people would ask. “I’m not retired,” I would joke, “I’m Financially Untethered, aka FU!” (This was before the pandemic, when I still had a sense of humor). It was a needed sabbatical, and I was looking forward to recharging by re-watching Avatar: The Last Airbender, Battlestar Galactica, and The Golden Girls.

One day, I got an email from Angie Kim, President & CEO of the Center for Cultural Innovation. “I’m wondering if you have a soft landing? Can our work (www.ambitio-us.org) potentially fund you, give you a business card, and act as a platform so that you continue to be in the field in ways that might work for you?”

Through our conversations over the following months, I got to understand what Angie meant by “soft landing.” This is what conservatives do for their leaders. They provide them with support to ensure that their work continues. If a right-wing pundit gets fired or leaves their position, you can be sure the conservative movement will rally around them, help them get a new job, a slot on Fox News, a post at a research institute, a book deal, a litigation lawyer, a spot on Dancing with the Stars, or whatever. They understand that their most effective leaders are their greatest weapon, so they do everything they can to protect and invest in them and their ideas.

9 crappy paradoxes that shape nonprofit and philanthropy

Posted on August 2, 2020August 3, 2020 by Vu

[Image description: A golden retriever puppy, lying on the ground, their paws on the sides of their faces, looking sad and adorable. Image by birgl on pixabay.com]

Hi everyone, quick announcement: Please put August 10th at 12:00pm Pacific Time on your calendar for Community-Centric Fundraising’s first town hall meeting. Sign up here and we’ll send you the zoom link. Until then, the (CCF) Hub is designed to provide alternatives to our default white-centric fundraising narratives. It features about three new thought-provoking pieces of content each week, including “How prospect research can help nonprofits become less racist and more inclusive,” “What I Learned from Losing Two Jobs in the Fight for Racial Equity,” “‘You want a director of what now?!’ When orgs that are hiring are too lazy to know what they want,” and the first episode of the Ethical Rainmaker podcast, where CCF Co-Chair Michelle Muri and I talk about fundraising and equity. Check it out!

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I’ve been spending a lot of time flossing while thinking of how to categorize the challenges in our sector (What, like your quarantine activities are so much more interesting). Many of the stuff we deal with falls under the category of “well-meaning people inadvertently making nonprofits’ jobs harder.” Here are a nine. I’m going to call them paradoxes, though some of these are not paradoxes exactly, but are more like dilemmas, conundrums, or shenanigans. I’ve written about a few of them, but they keep coming up and remain a problem, so it’s good for us to review and have common language to push back. If we want our sector to succeed, we need to be aware of these paradoxes and control for them.

Why we need to move away from empathy in our fundraising approach

Posted on July 13, 2020July 13, 2020 by Vu

[Image description: Black-and-white image of two people, likely children, walking down a dirt path, facing away from the camera, the taller person having their arm across the shoulders of the shorter person. Image by Annie Spratt of Unsplash.]

Happy Monday, everyone. I hope to see you at the Community Centric Fundraising’s launch event today at 11a PDT (you can still register to join). If you can’t be there, please sign up to get more information on future events. Our next one, on 7/24, will be about the data we collected from the Fundraising Perception Survey. (Spoiler: A majority of the 2300 people who responded to the survey, both BIPOC and white, are not happy with the way our sector has been doing fundraising.)

I am also thrilled to announce that the Community-Centric Fundraising Website is up! Check out communitycentricfundraising.org! The CCF Hub will serve as a central area for reflection and learning. Already there are several pieces on there, including

12 Years a Fly in the Milk, a brilliant, honest, and moving video by Marisa DeSalles
10 Reasons Why Fundraisers and Nonprofits All Need to Support Defunding the Police, an important essay by Erika Chen encouraging fundraisers to take a stand.
The Power of a Fundraiser: Why You Are the Key to Systems Change a thoughtful piece by Michelle Muri exploring the critical role fundraisers play.

There is also a list of some CCF-aligned actions you can take at your organization. Please keep in mind that these actions, crowdsourced over the years, are not comprehensive, and this list will change and evolve. The exciting and necessary work of this movement is for all of us to reexamine the philosophies that ground so many of our practices in the sector.

It’s time we fundraise in a way that doesn’t uphold white moderation and white supremacy

Posted on June 29, 2020July 2, 2020 by Vu

[Image description: A person holding out their hands on which are several coins and a piece of paper that says “Make a change.” Image by Kay Yukawa on Unsplash.com]

The past few months have been challenging, testing all of us our limits. At the same time, it has also been amazing to see more and more folks owning their complicity and power, being bolder, and challenging established norms. Our communities cannot afford for us to doubt ourselves, be too deferential, or always default to philosophies and processes that we were trained in.

This includes the way we do fundraising. The fundraisers in our sector, of whom I am proud to be one, are dedicated, hardworking, and endlessly creative. We have to be. We know that if we stop, if funding stops flowing, real people’s lives are affected. Thank you to the amazing development professionals in the field, without whom our programs and services would not be possible.