A Bigger Pie

Clarification on Religious Giving

After getting some comments/questions about our last post, I wanted to clarify a few things, and also bring light to some questions that I am seeking relating to these issues.

It isn't my intent to attack religions here.  I simply want donors to all charitable causes to be able to know where their money is going, and how it is being used within the community.  The way I understand it based on the research I've done is that religious groups, like other non-profits, are granted tax exempt status because they are raising funds for the specific purpose of doing good within the community.

With that overriding concept in mind, it seems to follow that the members of the community should be able to know where the money is going and how it is being used for the purposes of the organization.  Again, this is true of both religious and non-religious not-for-profit groups.

A great website to use is Charity Navigator, where you can look up a nonprofit and get some important information, including an indication of the efficiency of the organization.  I think all of this information should be made available to the public for all nonprofit organizations.  But, my research indicates that churches are not required to provide the same reporting as other groups.

That is the main thrust of my last post.  All organizations with nonprofit status should be held to the same reporting standards.  When you consider the fact that churches are not, along with the fact that such a large percentage of charitable giving here in the US goes to congregations, anybody can see the potential for abuse.

And, while the potential for abuse also exists in other organizations, the less reporting and accountability we require, the more we're holding the door open for these abuses.

I'm doing more research on this, so I can better understand the differences.  I'm not sure why other groups are held to higher standards than a church would be, but when I am able to provide more information on the specifics, I'll surely post it here.

Religious Congregation Giving

Here's an idea that I don't expect to be popular with everybody. If you look at charitable giving in 2007 we can see that over $100 Billion was given to religious congregations last year.

that's 50% of ALL individual donations. Now, I know there are many good people out there locally doing good work. I also believe there are likely to be some/many local clergy getting rich off donations that were given under the assumption that they'd be put to different use, often by people who can not easily afford to tithe or donate in the first place.

I wonder if there were a system in place to check in on how that $102,320,000,000 is spent, and how much of it actually finds its way into helping the community. Making that information public would do one of two things:

1. We'd all find out that every dollar is pretty well optimized, and being put to good use within the context of the purpose for which it was given, and people can feel comfortable continuing to give

2. We'd find that NOT every dollar is being optimized, and there are individuals in power taking advantage of their congregations. In those cases, perhaps some of the members of the congregation would choose to give their money to charities that are more accountable.

$102 Billion is nothing to sneeze at, and if we can find that even 1/4 or 1/3rd of it is going towards enriching an individual at the expense of the community, and that money can be redirected, what kind of a difference could THAT make?

Fund Raising Competition And Seth Godin

Seth Godin is one of the leading thinkers of our time.  When I heard he was to be the special guest on the latest Network For Good NonProfit 911 call, I was sure to listen in.  I've read just about all of his books, and have signed up in advance for his next book, Tribes, and am part of his Triiibes community.  His insights will no doubt play a critical role, as I rapidly turn my vision into reality

Godin never disappoints with his unique and interesting ways to look at things.  If you're not familiar with his work, then read his blog.  It will open your eyes, and help you see things in a new way.

This call was no exception, in that many of the ideas Seth communicated were surely radical to many of the folks listening in.  Most of the call attendees, I believe are individuals working in the non-profit sector.  More specifically, I think it's likely that the majority of them were in fundraising roles.

As always, Godin helped us take a step back, and see the issue from a different angle.  Good work there.  However, in this case, I don't think just one step back was enough.  I must admit, I was surprised.  Had he zoomed out just a bit further, he would have touched on the concept of A Bigger Pie.

Perhaps he took ONLY one step back on purpose.  Or, perhaps not.  We'll have to ask him.

His focus was on getting these fundraisers to help "Flip The Funnel", and allow their existing supporters and donors to start doing much of the fundraising work for the organization, rather than having the organization do it themselves.  It makes perfect sense if your perspective is from that of an individual organization. 

But, from a macro perspective, who really cares if the American Cancer Soceity or the American Heart Association is doing a better job of fundraising?  I mean, other than the employees, who cares?

Are we better off with more money going to ACS or AHA?  I don't know that there's an answer to that, unless you have a horse in the race.  If you're more at risk for cancer, perhaps you feel strongly about that.  Or, maybe you had a relative that recently died of a heart attack, or that issue is particularly important to you for some other reason.  But, for soceity as a whole, there is no right or wrong place to donate between those two, is there?  Assuming they are operating at similar organizational efficiency, there is not.

As Godin says, donating to the American Cancer Soceity is safe...it's hard to criticize somebody for it.  But, by the same token, if that person put their donation towards the American Heart Association, could you possibly call that a "bad decision"?

By encouraging groups to do something remarkable to get attention, and build relationships, which ultimately turn into more donations, Godin is giving each organization info they can use.  And, it's very likely that if enough organizations implement these ideas effectively, the pie WILL get bigger, but only as a SIDE EFFECT.

Zooming out one click further, we can see that if we can increase the size of the pie, then the rewards to the companies that are doing a good job will be even greater.  Plus, on a macro level, we will undoubtedly be better off if BOTH organizations raise more funds.  this doesn't have to be a zero-sum game.

Let's shift our perspective from that of a non-profit fundraising employee to that of our soceity.  If we do that, the main effect and side effect will also shift.  From our new perspective, we can see that the pie is growing.

And, if the ACS or AHA get whooped in the fundraising marketplace by the Komen Breast Cancer Fund, or Habitat for Humanity, then so be it.  If some groups don't catch on, let them lose out to the groups that "get it".  Over time, there is no better way for an organization to grow and adapt (or die, if they cannot) than when they are forced to do so by competition.

My vision is to create the "portal" that will allow us to both:

• increase the size of the pie
• make it easier and more efficient for non-profits to get the message out, and fight for their share of pie

Remember here people, I'm not suggesting we create this competition, it already exists.  We might as well recognize it. 

What we need to do is level the playing field, make it easier and more efficient for groups large and small to compete, create more transparacy for donors, and most importantly, raise the sum level of incoming donations.  If we can do all these things, we will end up with A BIGGER PIE.

And, that is good for everybody, regardless of which nonprofit you work for.

Web 2.0 and a Bigger Pie

In my research, I found that there are many companies out there in the “Web 2.0 for Non-Profits” space.  Unfortunately, most seem to be about helping their clients get a bigger slice of the pie, and not making a bigger pie.

Granted, if giving becomes easier, faster, simpler, more people are likely to give, and will likely give more, resulting in a larger pie.  But, this almost becomes a positive side effect of what is going on, rather than the core purpose and benefit.

I believe if an entity with the right resources came along, they could “shift the curve”.  Rather than simply helping their non-profit clients perform better, giving off the side effect of increasing total donations, this new company could set out to INCREASE total donations.  As they succeed in increasing the volume of donations, this bigger pie would then be available to the existing non-profits. 
A rising tide lifts all boats.

The single closest organization I have been able to find in my research is Network For Good.  On their website, the focus is on making giving easier for people when they are inspired to give.  Take one look at their about us page, and you’ll see:

“Imagine what the world would be like if every time you were inspired to help someone or something, you could -- with just a few clicks of a mouse, anywhere online. That’s the mission of Network for Good.  We make it as easy to donate and volunteer online as it is to shop online, and we make it simple and affordable for all nonprofits, of any size, to recruit donors and volunteers via the Internet.”

Truly a nice idea, but again, it all starts with the presupposition that you are already inspired and predisposed to giving at that moment.  Of course, you can sign up for automatic monthly donations, as you can directly with many charities, and that is a nice feature, but it doesn’t directly touch on what I believe is possible.

I believe we can do so much more. 

Now, there are many other companies out there, in addition to Network For Good, and some of them touch on the same concepts, but none seems to nail it right on the head.

If the right kind of Web 2.0 site were created for giving, there’d be a lot more pie to go around.  So, how do we make it happen?  I'm not sure yet.  I'm considering contacting some of these companies to see if they are willing and able to focus more directly on this aspect of the challenge. 

Anybody out there with ideas/suggestions, I'd love to hear from you.

Too Many Choices???

I’ve had people tell me that they want to give, but can’t make up their mind on who or what to donate to.  Paralysis by analysis….is that really possible?  Of course it is.

With so much information out there today, it’s easier than ever get frozen in your tracks.  Back in the “old days”, like 15 years ago, a few donating opportunities would knock on your door per year.  A walk-a-thon, Girl Scout cookies, and maybe a Jerry Lewis telethon.  You could either give, or not give.  But, the chances of information overload were slim.  Even if you wanted to research all of your options, before the internet was somewhat evolved, I can’t imagine how you would have done so with any level of efficiency.

So, here we are, Web 2.0.  With our dual-core processors and high-speed internet, thousands upon thousands of non-profits are our there, all competing for your donations.  And, the battle-field can be so cluttered, some people freeze up, and give to nobody.  What a tragedy!

Chris Anderson, in his incredibly insightful book The Long Tail, does address the double-edged sword that is more choice.  Too many options can be paralyzing and overwhelming when there is not enough information available to help people actually choose.  When a lack of digestible information is unavailable, and consumers cannot confidently choose between options, no decision is made….and, there you have it:  Paralysis by Analysis.

What do we do about this?  This would optimally be tackled by both the donor and also separately by one (or more) of the many “Charity Portal” websites out there.  Please note “Charity Portal” is my term, not what they call themselves…and, I’m not trying to coin a phrase, I don’t even like the term.  But, for purposes of this particular blog entry, it will have to do.  We’ll come up with something more elegant down the raod.

So, the Charity Portals can take steps to make it easier for the consumer (donor) to choose confidently between their 2 or 19 choices in any charitable category.  Provide more information about the cause, allow for discussions, do a “recommendation engine” (for example:  people who donated to UNICEF also gave to UNAIDS).

And, on the consumer side, if you’ve gotten it narrowed down to 3 or 4 non-profits in a particular category and can’t decide, you can do one of three things:

1. Just pick one and go with it, trust your heart and the universe to lead you to the “right choice”, understanding that each of your options is probably a good option.
2. Donate to ALL of them.  If this will help you take action, just donate to each charity.  Either take the original amount you wanted to give and divide it up equally, or, even better, spread it out and give to all the groups, in an amount that is greater than what you were originally planning to give.  Make a bigger pie!
3. Freeze in your tracks.  Become so fearful of making a mistake, that you play it safe, and do nothing.  That way, you can’t lose, right?  Wrong.  Option 3 is the booby prize…it’s only here to show you how silly it is to freeze in this instance.  Just give, good things will happen

Now, about those “Charity Portals”….

Give At Your Own Speed

Each of us will soon come to the question of “How Much Should I Give”?

Should you:

·         Give as much as you can afford?

·         Give until it hurts?

·         Give a fixed percentage?

·         Not give at all?

·         Try to give “whatever everybody else is giving”?

I could have probably come up with another 10 bullet points if I really tried, all of which would seem like pretty good answers depending on where each of us is in our lives and our perspective.

I come from the school that says the main thing is that we all give consistently, and give in an amount that is “more than trivial”.  While that will be different amounts to different people, the concept is the same:  Optimally, give an amount that might cause you the slightest “inconvenience” or “adjustment”.

If you say to yourself, “man, I could easily afford to give $10 a month”, then maybe you should think about giving $11.  When starting, try to just touch that point where you might have to stretch yourself a tiny little bit, as it will deepen the experience.

One thing not to worry about is how much those around you are giving.  The last thing we should try to do in anything is to measure ourselves against others.  The late, great comedian, George Carlin pointed this out in his own way when he observed:

Have you ever noticed that anybody driving slower than you is an idiot,
and anyone going faster than you is a maniac?

What a brilliant thought.  I use it to help myself stay centered in a variety of life situations.  And, it is tremendously pertinent here.

Don’t feel like your donations are not meaningful when you hear of a Howard Stern at a $10,000 a plate dinner, or Oprah spent $40,000,000 on her school for girls in South Africa.  And, on the flipside, if you were planning on pledging $3 per mile for the latest walk-a-thon and then hear the boss in your office, who makes twice as much than you do pledged $1, don’t judge him as being cheap or a jerk.  What any of those other people chooses to give is their business, and should have no impact on what you choose to do.

When measuring against others, there is too much input, and all of it is out of your control anyway.  Everybody has different circumstances and thresholds. Find what works best for you, and commit to it.

My Personal Charity Experience

The extent of my giving experience up to that point had been pretty well limited.

Nothing against my parents, but if they ever did donate much money to charity, I didn’t know about it.  I kind of remember one or two things here and there, but to the best of my knowledge, it wasn’t a significant part of their lives.

So, ss a kid, I sold raffle tickets door to door to raise money for my baseball little league…not sure if that can be considered giving, but that’s about the extent of it.  And, as an adult, I pledged money for one of my co-workers in a walk-a-thon.  I don’t remember the amount, the cause, or who the walker was, but I did cut a check of some amount.

In between those two very meaningful, world-changing events, there was college.  In my fraternity days, we did a bit of community service every semester.  Most of it was based on ulterior motives.  We were either endearing ourselves to the administration by cleaning up litter around campus or some other worthy cause, or, we were helping to foster good relations with incoming students during “move-in day”.  Now that I think back, it seems that for some reason, most of the help went to all the cute freshman girls.  Oh well.

So, now, as an adult, I decided it was time to give a bit of myself.  I thought it would be cool to be a Big Brother to a young kid who maybe didn’t have a father figure in his life.  I contacted the organization, filled out the requisite forms, and went in for the interview.  It seemed to me that I was the perfect candidate.  Ummmm, I guess not.

I’m sure people get rejected when they volunteer from charity work all the time, you just don’t hear about it that often.  Anyway, that’s what I told myself to try to feel better. 

Yup, I was rejected.

In all honesty, I think it was simply the profile.  I was single, I guess about 32 or 33, and just out of a relationship.  And, when they asked about whether I thought it was ever OK under any circumstances for an adult to have sex with a minor, I answered that it was, and explained myself very clearly.

When I was in high school, I was about 5 months older than my girlfriend.  I’m sure there are other couples dating where the age gap is even smaller, perhaps just a few days.  If a couple of 17 year olds are sexually active (not exactly a radical thought there, is it), and then one of them turns 18, are they supposed to then abstain for a couple of days/weeks/months until the other hits that magic number?  The idea is ridiculous, right?

Well, I guess the folks at Big Brothers/Big Sisters didn’t like that answer.  Although they couldn’t tell me why they turned me down, I drew the conclusion that it was my over-the-top honesty that killed the deal.  I wonder how many people just answer that question with a “NO”, either lying, or not truly considering the exact wording of the question, and their most truthful, honest answer.

So, that was the extent of my experience with charity…rejected as a volunteer!

Then I went to a financial management seminar a few months back where the idea of giving to charity as part of a personal program to INCREASE your net worth was introduced.  That was the start of all this…

What If I Don't Have Enough Money To Give?

As we each think about giving, whether it’s $10 a month, or $100, or $1000 or more, let’s put the idea of making financial donations in proper perspective.

You shouldn’t have to change your life to make this work.  This is not about joining the Peace Corps, and flying off to Tanzania.  Doing something like that is extremely incredibly noble, honorable, and selfless, and if that is your inclination, go for it.  It’s not mine, that’s why I’m here, at the computer.  The world needs more people doing those things on the front lines.  But, that is not the topic of THIS blog.

What this blog is about is us finding a way to make the charitable donations that fund the efforts of those guys on the front lines.  There are already millions people out there doing the hard work.  But more funds are always welcome.  In many cases, programs are greatly restricted by lack of funds, as much as by a lack of qualified volunteers.

I want to be perfectly clear here, more volunteers will always be needed, and I’m not trying to discount the contributions those volunteers provide, or impress upon people that volunteering is not important.  Far from it, it is critical, and, without people out there doing the work, all the funding in the world won’t make a difference.   But volunteers without funding are not as valuable as volunteers with funding, and again, the purpose of our blog is to encourage donations.

So, this is the point where it’s my responsibility to show how easy it is to give $10 a month.  You’ve all heard this one before, right:  If you just cut out your Starbucks every day, and stop going to the movies, and eat beans out of a can every day for dinner, you’d be able to donate thousands. 

It’s easy for somebody else to say, right?  Simply downgrade from a Vente to a Grande, or play golf once a week instead of twice, or get the basic cable package rather than the one that has Showtime, and you’ll have more money for everything in your life. 

While that’s technically true, for many people the thing in our lives we’d want more money for is EXACLTY that Vente Mocha Frap, a movie on cable once or twice a week, and a couple of rounds of golf.  Some of us don’t want to change THOSE things.  So, what do we do?

Give anyway.

That’s right, give anyway.  The money won’t be missed by you, and it WILL make a difference.  Even if it’s just $1 a month, save it up and donate $12 at the end of the year.  It can and will make a difference.  And, what you’ll find over time is that, if donated properly, you may enjoy the results of your gift enough that you don’t mind downgrading from a Vente to a Grande.  More on that to come…..

Why "A BIGGER PIE"?

Why Me, Why This???

I’ve given this question so much thought over the last few months, if I were to write it all out here, it might be the world’s longest blog entry.  So, let’s just start with the basics, and that will get our blog started off on the right foot, with more to come.

I hadn’t ever really done much for charity.  One of my next entries will cover my limited involvement up until this year, but suffice it to say that I had pretty much been an “every man for himself” kind of guy until recently.

I had an epiphany a few months back.  It wasn’t while meditating or from some mystical visit from a divine being or anything cool like that…it was at a money management seminar.  The suggestion was made that you should give 5% - 10% of your post-tax income to charity.  “FIVE PERCENT???”

Notice, I didn’t even process the 10% part in my brain?

To some people, their first reaction is no reaction at all.  Many people already give that much to the church in tithing.  But, to me, having never given much of anything, 5% was a pretty radical idea.

I listened to their reasoning, and I went home, and I thought about it.  I processed it very logically, within the context of how it was presented…the spiritual and financial benefits of giving.  The idea being that you feel better when you give, and, giving promotes a feeling of abundance.  On top of that, the more money you earn, the more you have available to give to help others, and the more you also get for yourself (which, at the time, was the whole reason I was at the seminar in the first place, or so I thought). 

I made my first donations to The Smile Train and Vitamin Angels …but lately, I’ve been thinking on a much deeper level about the concept of charity in our society, why some people give and others don’t, and the role giving plays in our lives.  That’s the subject of this blog, and this is the first entry.What made me take the leap to create a blog about a subject I had never even thought about 4 months ago?  Patience…that entry will come in a couple of days.

For now, if you’re not already actively giving on a regular basis, give it some thought.  Why not?  What would it be like if you were to give?  Maybe not 5%...maybe just 1%.  What kind of a difference might that make?  How might you feel different?

Feel free to check out either of the 2 organizations I mentioned above, or research from a million or so at The Network For Good.