082: Marc Ecko, Craig Newmark & Naomi Levine – Tony Martignetti Nonprofit Radio

Tony’s guests this week:

Marc Ecko, CEO of Ecko Enterprises

Craig Newmark, founder of Craigslist & CraigConnects

Naomi Levine, executive director of the Heyman Center for Philanthropy & Fundraising at New York University

Read and watch more on Tony’s blog: http://mpgadv.com

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Hello and welcome to the show it’s tony martignetti non-profit radio big non-profit ideas for the other ninety five percent. I’m your aptly named host it’s friday, march ninth, twenty twelve i certainly hope very much that you were with me last week because what you would have heard was b f d board financial dilemma. What do you do for board members who can’t read your balance sheet? The authors of the board members easier than you think guide to non-profit finances answer that andy robinson and nancy wasserman explained why understanding finances is critical so boardmember is, preserve your good work and protect themselves. We helped your board achieve financial literacy this week. I’ve got three conversations all pre recorded with marc ecko, craig newmark and naomi levine first thoughts on branding and other business lessons applicable to charities from marc ecko, founder of the very consistent brand echo enterprises, then craig mark the found of craigslist and craigconnects has ideas about simple communications and knowing when to stop talking. I interviewed mark and craig at the next-gen charity conference last year, and we closed with naomi levine, executive director of the heimans center for philanthropy and fund-raising at new york university last may, at a reception for my show, she and i talked about professionalizing fund-raising and enhancing its stature. The role of trustees, government oversight, motivation for small charities and the future of the charity community. In between. Those segments, at roughly thirty two minutes into the our tony’s, take two. Something different this week of a vintage standup comedy clip from july two thousand eleven. Of me, this show is supported by g grace corporate real estate services. And i’m very grateful for their support. Right now, we take the break. And when we return conversation with marc ecko, stay with me. You’re listening to the talking alternative network. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call a set to one, two, nine six four three five zero two for a free consultation. That’s lawrence h bloom, too. One, two, nine, six, four, three, five zero two. We make people happy. 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 welcome back. Right now, i have a conversation prerecorded with marc ecko. Hope you enjoy this. Welcome to tony martignetti non-profit radio coverage of the next-gen charity conference were at the tribeca performing arts center in downtown new york city. With me now is marc ecko, founder of eco enterprises. Specifically, we’re gonna talk about some of his board leadership on ah, with ticket, a children’s home, sweat, equity, education and every loop he’s sort of a founder of each of those and is on the board. We’ll talk a little about that. And also his presentation today on how we make people feel at next-gen marc ecko, welcome. Thank you. Why don’t you tell us what the work it ah, tick of a children’s home is it’s ukraine? Yeah. Tick. The children’s home is in odessa, ukraine. It was kind of my first entree experience in tow. Philanthropy. I kind of say it’s like we did probably the first hostile takeover of an orphanage in ninety seven. There were no casualties. Not that i know of. And certainly not the orphans of the kids. But maybe some of the prior funders o k could be for the good. Yeah. It was in the end, it netted out really well. But that was my first kind of deep touch experience. Where got toe apply my marketing sensibility. Ah, kind of operational sensibility to things on a not-for-profits sector. Um, and i got the kind of i r r if you will, the return on investment emotionally of being able to see what the dollars were doing on the ground and the touch and feel with, like the kids that that provoked me tow want to come home and you have something that was ah, you know that i could have more of ah, instant feedback loop on ah, as getting to odessa the frequency of that it was quite hard. And i still i obviously go, you know quite frequently, but the operators really on the ground, they’re the ones that are on the day today. So i, ah, started investigate the education sector, um managed to become a boardmember of ah, big picture learning, which is an alternative high school program. Alternate high schools all around the country. Great operators of, i think, one of the best reimagined high school program in the country. And i won that i don’t think it’s enough credit for it. Ah, but that provoked me to launch sweat, equity, education and sweat equity. Education is ah, and its core design. Ah, curriculum development programme where i was taking the access that i had in in the consumer product industry and kind of making it open source to the eu space. So how do you teach kids to the open hyre versus teaching them to the test? What did that look like like, for instance, could ah, ah, young kid in high school, high school age really was our core focus of cohort. Um what? What is that? They need to know to be a footwear designer in our industry. And what are the information management tools? And how would you measure success? And, you know, not stuff that you would abstractly touch, but, you know, practically touch. So it was kind of, you know, one part reimagining vocational education and another part just kind of increasing the relevance meter on considering products on dh tying that to jobs directly to job. They’re designer, et cetera. Yeah. For where watches fission products, you know, as a consumer product guy, um, that was always the coolest parts of my learning. And then my continued learning in life is that when you idea it’s something you have that you germany an idea, the idea comes back, you know, typically in the way of package or a box. And because that idea’s a sample and the samples all wrong and problem solving to get it right, where were you wrong? And where was the, you know, on the manufacturing side? Wrong. And how do you manage that information loop? And how do you home that? What kind of efficiencies can you get it learned from that so kind of, like, really demystifying my industry? Ah, inside of a curriculum product. So let’s, talk about some of your your board service because you want to tie your work to the to the audience and maybe their relationship with board members. Um what? What do you see? The shortcomings that you have become aware of in the in the way that the the executive director’s or, you know, administrators of the of the non-profits you’re on in the way they relate to our use, their board members. What advice do you have around that? Well, i think today you know, i think the next generation of charity is is ah, is to not think of yourself like a charity. You know, my great experience around sweat equity education was moving from who was, you know, an organization that was run by an executive director kind of classic form e d um, slightly academic. Ah, really good person. Ah, really, really, really good person. But the orientation was an operational. The orientation was muchmore kind of entrenched in the kind of the kind of seeing the world this flat from an operational point let’s talk about let’s talk about having developing this operational perspective. Just have a few minutes that that partly that part laid into me reset, restructuring the organization so that we had a c o o and we’ve reconfigured the organization to get someone out of business to kind of come in. And ah ah, operationalize and bill deficiencies in the organization was a big that’s, a big learning experience for me and one that i think has been ah, very fruit phone is informed. Ah, you know, other boards that i sit on in the non-profits check on dh. How have donors reacted to that at the organising some donors it’s interesting, you know, i’m someone i’m completely self made, so i take every dollar that i spend very seriously. Ah, i don’t have build gates money, but i certainly i think, for the percentage of my net worth and how much i’ve given up from work-life pay over the last decade has been it’s ah it’s been significant, so i take my spends very seriously, and i think there’s some donors to the orientation might be on the foundation side where they’re not necessarily personally stroking the check i mean personally, but rather from a foundation. So they’re an executive at a foundation or from high net worth individuals who, you know, it’s it’s kind of like a loss leader for them. So some folks have ah, don’t like that kind of business orientation, they get threatened by it. They kind of are nostalgic for a certain structure and modeling, which was that that model is coming out of date exactly. And so those are not donors that are relevant to my efforts. Yeah. Ah, and i try to get with like minded folks folks that want to try to ah, build efficiencies and ah! And build ah, you know, i don’t want to say the b word because it sounds maybe a little bit ah, and pathetic a latto being in the philanthropic space, but building the business of charity. Yeah, okay, now. And it takes a certain kind of rigor that we could extrapolated from operating business is to make them run more efficiently if they’re going to be small, medium size. We have just about a minute or so left before i know, i know you have to go and but while you were on stage, you made a point of talking about how how we make people feel. Yeah, and i was thinking of does i was listening to you. I was listening, i was think about donors how we make donors feel about they’re they’re giving, but can you share what, some what you shared on stage? Yeah, you know, i just i i’m a big believer that’s not what you make in life. It’s, it’s. You know, tell you make people feel i think, when when you die that’s what people? Remember, you know, it’s the that’s, the magic and building kind of real authentic connections between peoples i think putting an emphasis on the touch in the field and the and the and the kind of emotional stickiness because that’s what drives and motivates people to kind of want to show up the next day and the next day, you know, ah, brand is really nothing but ah, a fancy way of kind of saying, ah, you know, i’m going to build the the easiest solution to get people to understand my values if they are those folks are my consumers or people that work for me or people that don’t know me, like, within an instance, you know, it’s kind of a little bit like in this maybe a little bit, maybe egomaniacal, but a little bit like believing that you are building a religion and ah, you know, when you think about what steve jobs or walt disney did in terms of the religion of their brands, it’s very easy to become indoctrinated so like a fair manager, and if they operate in the name of apple on the ground, you don’t need jobs in the room to kind of channel that energy and that’s what great brands do good, they kind of informal culture oh! And they inform culture of leadership, clarity of message concensus. Ah, and ah, you know that that in order to build those often in the non-profits back sector, the ones that do get over that hump, they manage to do that are the ones typically have a much larger scale. It’s very hard to do that without kind of the powder to take it, you know, to scale. So, for instance, let’s say a united way is a very effective, you know, um, you know, uh, organization terms of building its brand saved the children. Okay? Ah, well known, but even a smaller organization, i could still have this kind of effective leadership. And, uh oh, there’s, no doubt sharing of culture. And now you there’s no doubt, there’s no doubt, i think it’s but, you know, it’s kind of just pierced its appear like it’s a numbers game, right? Like, the more it’s, hard to scale, a brand that no one knows, like, you know, kleenex, right? But you don’t know, like, you know me nick’s, right? Like, if i said, oh, i used me next you’d be like what? You don’t mean so there’s ah, you know ah. What? I think it could be said for that and i think an an an anecdote for folks in the non-profit space. They need to go around and find other like minded organizations and, you know, should i see this all the time you just came from aa? You know, big summit and ah, get out the vote groups like all around the country and from the rock, the vote, folks toa much smaller kind of local regionalized groups that are more maybe focus around a demographic or a region of the country. But you know anything that they could share and create a kind of an umbrella around to kind of create that scale. Right? I often say to two non-profits to check their charities at the door, check their brand rather at the door. And one of the great ways for them to grow is to find like minded organizations that are willing to kind of operate under the same name. Ah ah ah, if you find, you know it’s kind of odd to me that, you know, i just came from a two day summit where i met someone on the west coast that’s trying to do is get out the vote, play with a digital platform and then someone on the east coast trying to do it to get out the vote play with a digital platform it’s kind of like, aren’t you? Isn’t there some burr dunaj run done and sees here? So even if you like used, we could probably take make-a-wish you guys operate on the same basic digital, like the digital tools, and you guys could re label like white, label them or or be powered by your brand? But how do you build those efficiencies when you’re operating in-kind of small silos and very fragmented co-branded helps give cover and, you know, often the you know, there’s, there is strength in numbers and strength in that kind of alignment of missions, so ah, i feel like that’s. What? Ah ah lot of its one of the achilles heels of the of the non for-profit sector marketa, whose founder echo enterprises. He has just a short time. So we have to wrap. This is tony martignetti non-profit radio coverage of the next-gen charity conference. Coming to you from tribeca performing arts center, lower manhattan. Mark. Thank you very much. My pleasure. Thank you, thanks for saving. Thanks. They didn’t think the tubing getting demanding things. You’re listening to the talking, alternate network, waiting to get me to thinking. Cubine are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam lebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Hi, this is psychic medium. Betsy cohen, host of the show. The power of intuition. Join me at talking alternative dot com mondays at eleven a. M call in for a free psychic readings. Learn how to tune into your intuition, to feel better and to create your optimum life. I’m here to guide you and to assist you in creating life that you deserve. Listen every monday at eleven a, m on talking alternative dot com. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed hi and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com talking alternative radio twenty four hours a day. No. Welcome back to big non-profit ideas for the other ninety five percent right now, i have my interview with craig newmark, the founder of craigslist and craigconnects from also neck from nextgencharity conference last year hears that. Welcome to tony martignetti non-profit radio coverage of the next-gen charity conference two thousand eleven at the tribeca performing arts center in downtown manhattan, and joining me now is craig newmark. Craig is the founder of craigslist and craigconnects greg, thank you for taking time today. Hey, i’m glad to be here. It’s a pleasure to have you craigconnects is ah fairly new venture but you and i talked about it on the show maybe six months or so ago. How has it been evolving? It’s been working out pretty well on a personal basis. It’s help me focus what i want to do in the sense of what causes i should be supporting what group size should be supporting in support of those causes, that kind of thing. It’s helping me better understand how tow really do an exceptional job of supporting some specific non-profits also finding ways for non-profits tto help themselves with the eventual aim of getting very large numbers. Of people connected to social media. All right. And so what have you been learning from the personal perspective in terms of how you should be or how craigconnects should be supporting non-profits well, there’s a bunch of small lessons, okay, one of the one of the most difficult is haven’t finding ways quiet ways to get people in the same space non-profits in the same space to actually talk with and work with each other collapse been a tough one. I’ve also ah realized in a deep way how difficult it is often for small, effective non-profits to be really bad getting the word out about themselves, since often they don’t know how to deliver a good, tight elevator pitch and that’s a bit of a computer industry cliche. Nevertheless, they need to be able to talk about themselves and real quick and tight. So how is craigconnects helping with the collaboration and also helping non-profits deliver their own message? Well, in those specific examples, it’s mostly me speaking directly across people in different groups in terms of what they’re doing, i’ve devoted most of that energy to groups which support military families and veterans um, but very recently and i really mean, last couple days i’ve been starting to devote that now intensely two groups who believe in the future of journalism and that one way to restore trust to news media is to start checking the facts again. S o u mean investigative journalism investigative journalist plays a role, but the idea is that often a politician, for example, will make a statement to a reporter. The reporter will know that he’s being lied to and the reporter should have within relatively easy reach. Someone is check the facts, and it can then challenge the politician is needed um, and in terms of ah non-profits supporting themselves are really helping themselves to convey their own message. Doesn’t that still have to be an elevator pitch, but conveying, ah, cohesive mathos message? What is your advice there? Where you see shortcomings? Well, basically, the idea is that a speaker on behalf of a non-profit or pretty much any organization just has to clearly identify what they’re doing and just try to get it out there in about forty five seconds and then keep repeating until they can do that if they don’t know how to, they need to. Ask someone for help in terms of that craigslist foundation, in fact, does teach that and it’s a boot camp, but that’s only available maybe once or more year. The idea is it’s a matter of applied common sense if you’re doing something and if you’re good at it, you just have to be able to boil it down and to articulate the gist of it really fast. And then no one to stop talking. Yeah, okay, that i was gonna ask you something else. But now that you just said, you know, when to stop talking overselling can be a problem. Yes, it’s quite possible that i’ve just spoken with some folks who had a difficulty knowing when to stop difficulty. No england tio? No, when they were over selling something. Okay. And so how do we, uh, do you have any advice about knowing when to stop or should we be practicing this in front of others? How do we stop? People? I’d say practice in front of people who will be slightly unkind. You okay? Because you need friends who are good enough friends to let you know what you may not want to hear. Yeah, don’t. We learn a lot when we’re challenged when, when we’re told, you know, that’s not quite right sometimes the only way you learn is from people who like you enough, teo tell you, when you’ve gone a little too far, that applies, not lucas speaking, but in my case, my sense of humor. Okay, i won’t ask you to try it out, but but no, but it’s it’s absolutely true, we do learn when we’re when we’re challenged on dh challenge in a good way. Yeah, no so craigconnects is focused mostly on aid for military families you mentioned there. There are other categories of not sure all right craigconnects is working more than one, any one particular area with military families and veterans, but there’s also areas like water and sanitation, micro finance, peace in the mideast. One big area just beginning to be explored is ah helping out those groups which measure the effectiveness of non-profits because there’s a lot of non-profits who do a lot of good but there’s also a substantial number of non-profits hoo ah, tell a good story, but never really get anything done. No outcomes. Another area is this whole idea of restoring trust to the news to news media by restoring fact checking i mean, i’m not in that business and i’m not going to tell him how to do their job, but i want news i can trust again. One area unannounced on the site is voter protection. There are people actively seeking to disenfranchise various groups, young old latinos and other minorities. We’re in america and the effort to to disenfranchise people needs to be stopped. You mentioned the sights or the organizations that evaluate charities or rate charities that’s the guide star helping groups like guidestar, charity navigator is that is that the population that’s exactly right? Guidestar in charity navigator have been around a long time. They’re good at looking at financial effectiveness. They’re moving towards measures of accountability, transparency and then eventually measuring just how good a charity is that serving his client population. I’ve had ken burger on the show ceo charity navigator, and we’ve talked about jerry navigator two point oh, and then what’s coming in three point of the outcomes assessment that’s the deal now for the here and now there’s something called great non-profits stud organ that’s user reviews for non-profits kind of like what yelp does that’s a hero now, and i really do encourage people to look at it and then to write in their own little reviews of non-profits they know something about for charity’s listening if they would like tio if they feel they fall within the missions that craigconnects is working with, how do they go about getting getting the your attention? Well, if you go to craigconnects that or ge there’s a connect link and that’s how to submit something, we need a little bit of a break because we’ve been successful enough to get to be overwhelmed with requests, okay? And let me just ah, closing moment ask you generally what? What what are you planning to share this afternoon with the with the next-gen audience? Basically common sense stuff? They’ve asked me to talk about things i’ve learned doing craigslist in craigconnects that maid apply to people in general, like the craigslist business model ultimately is doing well by doing good in meant that when making it a new company, i decided to step away from a very large amounts of money, not altruistic. Itjust means following through his stuff i already believed in and another founding principle. I think craig was just simplicity, just a little about that. Well, yeah, insights, orn presentation or anything, people don’t really need the fancy stuff, they need something which is simple and fast, all right. Craig newmark is the founder of craigslist and craigconnects craig you very much for being a guest. Thanks, mom. My pleasure, then mar. Pleasure having you. This is tony martignetti non-profit radio coverage of the next-gen two thousand eleven conference at tribeca performing arts center in new york city. I want to thank craig, mark very much for sitting for an interview and also market go. Right now, we take a break when we returned tony’s, take to a clip from my standup vintage clip from my stand up stay with me. You’re listening to the talking alternative network. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed hi and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. 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 welcome back, it’s. Time for tony’s, take two. I’ve been doing stand up comedy since july two thousand eleven. Here is a vintage clip from july two thousand eleven. I did this set at gotham comedy club in new york city. Here it is, durney. When i was in seventh green, i had a terrific krauz lisa magic and i chose the moment to ask her to go steady. To be our seventh grade dance. I can still smell that high gloss varnish on the gymnasium floor. I was there in my powder blue leisure suit. The contrast ing thread on the lapel. I saved my last dance released. Lisa saved her last dance for albert moran. The pain of watching that spectacle when they parted buy-in walked up to lisa. I got close to her mind, hands were sweating, my chest pounding. I got so close, i put my hands on her shoulders in the middle of the dance floor, and i asked, monisha would you go steady? With all her seventh grade charm and sweetness, she said, you are standing on my dress. Years later, albert and lisa, man. Then, sadly, they separated and divorced. Dahna attorney. And i handled that divorce. Handup lisa has been paying the press waiting that is tony’s take two for friday, march ninth, two thousand twelve, the tenth show of two thousand twelve. There is more of that exact that clip mohr that set, i should say on my blogged at tony martignetti dot com right now i have my interview with naomi levin she’s, the executive director of the heimans center for philanthropy and fund-raising at new york university from last may at a reception that i hosted for my show here is that interview. Naomi levine is the executive director of the george h heimans junior center for philanthropy and fund-raising at new york university. For twenty two years, she was in use, senior vice president for external affairs and helped raise over two and a half billion dollars for the university. She is a graduate of columbia law school. She was previously the national executive director of the american jewish congress. Now she is special advisor to the president of venue, and she chairs the board of the edgar bronfman center for jewish student life and the tab center for israel studies. Please join me in welcoming mrs naomi levine. Mrs levine, what do you see as the non-profit role for our society? Let me put this in a kind of perspective that i always used. I don’t think that most people in our society recognized the importance of the non-profit world in our civil society, if you close your eyes for one minute and look at the skyline of new york city, do you hear me? Yeah, you will see that if you took away lincoln center, the hospitals and why you, fordham, columbia and all of the other universities, medical centers, cultural centers, theatres, dance a group, you will see that this would be a very different society, and most people really don’t think about that when they think of the way we all run. They think a government, they think of the corporate sector, and they don’t think of the non-profits but why is that? That that means non-profits are not fulfilling their work in spreading their the message of their good works? I mean, do you think the blame falls on the non-profits for people not being aware, i think i would suspect so let me lead into that as we progress in our conversation because the truth is, i’m not really sure i know that most people don’t realize it and what they don’t realise moore is not one of those organizations could exist without fund-raising they require financial support, and yet do you know a shingle mother who will say to their child, you know, dear, when you grow up, i want you to be a fundraiser. Nobody says that my own mother, my own mother in the last years of her life, when she was living at a place called cat a house in the bronx, i would come to visit her and she’d say to me now remember, when we go down for lunk, if someone asks you what you do for a living, tell them you’re a lawyer, not a fundraiser. She was embarrassed at her law review daughter was raising money. People think of it as selling cookies for the girl scouts, and you ask me why it is that i must tell you i’m not sure, but one thing i am sure if you let me adjustment, just put that on the table is that unless fund-raising is viewed as a profession, a legitimate profession that has talked within? The university not with in all kinds of organizations that provide courses, but within the university, it never will be given the kind of status that it deserves. Dentistry at one point was nothing. You went to an apprentice, yet you learnt how to pull a tooth. That was the end. Lawyers like john adams of your read his book. You know, he was an apprentice in a law office. But once causes were given within universities and got to stamp a university academic approval, they became professions. And the reason i created the heimans center is that i really want to see people take cautious, learn and make this area a profession that even my mother would be proud of you so that’s, hard to go. Let me tell you and you make a very good point that i don’t know any fundraisers who it’s. For whom? It’s. The first career. You know, in my office we had a big staff and we had people who were from every discipline around. They were from journalism, from archaeology, from everything in the world. Nobody studied. And yet if you think about it, i know that i learned an enormous amount. During those twenty five years and every time i prepare for a class, i learned more, i confess to you, i never spent time with my staff talking about ethics. What did we talk about? We talked about what you go, how much money where’s the money, etcetera. Yet when i started to prepare the course on ethics and red doug white’s book on charities on trial and a few other things, i said, you know, that’s, a very important area, and i should learn about it because if you don’t know the law and you don’t know the ethical component and you don’t know board governance and fiduciary relationship, you’re going to get in trouble. That’s perfect and doug white was a guest on my show, talking about his book about ethics, but so now we’re talking about the fundraiser and fund raisers, and you’ve just made a great transition. How about the role of the trustees? What? What are they trustees heir not really fully aware of their roles, don’t you think with respect to the organization, trustees are also fund-raising is if you sit on a board because it’s a nice, prestigious thing to do and it looks good in your obituary in the times it is a wrong reason to be on a board boards have responsibility. They have the responsibility to keep their organization financially secure. That means boardmember sze have to be fundraisers also, you know, larry tisch usedto have he was the chairman of gnu during the time that i was vice president and he had a very simple and crash way. I assume of running his board. He used to say to me, look, we’re not harvey, we’re not princeton. When i put someone on the board, they not only have to be dedicated, decent people committed toe hyre read, but they have tai run my board by the three g’s that people have to give money, they’re not a big amount, but give something to show their commitment to. They have to help get money, and if they can’t do that, they should get off the board because boards have responsibilities. And when you talk about a boardmember they have to be, they have to understand their responsibilities, fiduciary, legal, come to meeting, to read and order to report. Read a budget report there are a whole list of things if this was a class that i could list for you that boards have to do so. The relationship between the fundraiser and a boardmember is really a very close one. What was number three? You said he had three, three, three requirements, money get money there, you get off the moca or get off the board. That was number three, not in a harsh way. I’m not suggesting you tell your boards that i’m telling you you have to try to persuade them to give and then had people onto your board that will shut an example. I never suggested it toe fund-raising they come in and get rid of their boardmember you’ll be in trouble. On the other hand, you have tohave board training on the sarbanes. Actually, the corporation board have been instructed to do that to a close are instructed to give board training, training aboard and what their responsibilities are. Doug and i and and ruth ellen reuben is here. We go around to different boards were invited to talk to them about their obligations under the law federal law state law i venture to say if i went around this room today and most of your fundraisers air sit on board, you would not know a ll the laws that are involved in fund-raising state and federal. I learned that on lee when i started to teach i did not know that when i was raising money. Don’t you think that the trend also is that this is only gonna get worse at the booth state and federal level? That oversight from those levels of government is going to just increase among among non-profits i don’t like the fact that you used the word worse in my book, i would say that’s better, more, more. I know you advocate for even greater oversight. I know you do far more oversight and far more regulation. It is an area that everybody thinks so. We don’t have to regulate the non-cash offiicial very good people. The red crossed of good things university how dare we suggest that they be regulated more. Let me tell you that there is a cz much mismanagement, excessive salaries, all kinds of conflict of interest area occur in the nonprofit world that a car in a profit within the nonprofit sector fights your advocacy of deeper oversight. The non-profit schecter buy-in it’s. Not eager tohave. More regulation. I will confess to you on my staff and friends know this for seven years i have gone up to albany fighting for one lousy bill. One bill that would say that if you’re hired as a professional fundraiser, you should take one course in the a clutch of your entire career in law, ethics and board governance. I think you should do that. And every year it gets through the senate and assembly up in albany and then the non-profits come up and they argue against it in their mind. It’s a slippery slope. You’re going to start regulating your going to stock with more rules. We don’t want that. And the governors who don’t want to start up with such good organizations as the heart association of the red cross, they vito and it drives me insane. Ken berger is going to be a guest on my show in in july. I think. It’s the july first show, the executive director of charity navigator what do you see is the role of charity navigator and similar rankings ratings of charities. Well, i think that anything that helps a donor get on understanding of an organisation is a good thing i’m not in a position to discuss the details of those organization, but i know if their organizations around that help it donor-centric stay and more about the organization in my book that’s fine, more disclosure, more honesty, more open dealings, more accountability, all those words and now on the table when i started in fund-raising i’m a very old person, i’m eighty eight years, so i have lived through different parts and different segments off fund-raising the fund-raising world, and in the beginning, you never heard such words. I never heard such words, but now you hear it more amore schnoll organizations like that play a role onda, of course, it’s controversial because the role that they play helps define what people decide to look at. And of course, donors now are more interested in looking at outcomes, and that becomes very difficult latto measure donors are also interested in, um, percentage of budget that goes to program versus administration, but for some charities, it could be very legitimate toe have a very high percentage going to administration because they’re doing things in, but if they’re going abroad and doing things on the ground in, you know, in other continents, i have always been very conservative. I believe that when a person gives money, not more than thirty five percent maximum should go for overhead and a russian gulf of the program. Now there may be exceptions, and you may be right, but by and large, i think that people should feel comfortable in knowing that the book of their money goes to the project that they want to support. Now there are exceptions, and i think that when you sit down with the donor, like we used to have to sit down with someone who gave us two million dollars for a chair, we had to explain that some of that would go for the over head of that school. You’ll have to be able to explain it, but we never never spent more than thirty five cents of thirty five percent that was maximum mr tisch required even less on, you’ll have to be very open and honest about that talking alternative radio twenty four hours a day. Hi, i’m carol ward from the body mind wellness program. Listen to my show for ideas and information to help you live a healthier life in body, mind and spirit. You hear from terrific guests who are experts in the areas of health, wellness and creativity. So join me every thursday at eleven a, m eastern standard time on talking alternative dot com professionals serving community. This is tony martignetti aptly named host of tony martignetti non-profit radio. Big non-profit ideas for the other ninety five percent technology fund-raising compliance, social media, small and medium non-profits have needs in all these areas. My guests are expert in all these areas and mohr. Tony martignetti non-profit radio fridays one to two eastern on talking alternative broadcasting are you concerned about the future of your business for career? Would you like it all to just be better? Well, the way to do that is to better communication, and the best way to do that is training from the team at improving communications. This is larry sharp, host of the ivory tower radio program and director at improving communications. Does your office needs better leadership, customer service sales or maybe better writing are speaking skills? Could they be better at dealing with confrontation conflicts, touchy subjects all are covered here at improving communications. If you’re in the new york city area, stop by one of our public classes or get your human resource is in touch with us. Website is improving communications, dot com that’s improving communications, dot com improve your professional environment, be more effective, be happier and make more money. Improving communications, that’s. The answer. Talking. The audience for the show is small and midsize non-profits the tagline is big non-profit ideas for the other ninety five percent, what would you like to leave small and midsize charities? With what message for small shops, elections? You’re not different because how you raise money for a big organization and how you raise your trish more fundamentally are not different when we teach courses in our heimans center we, my approach is at the principles of generic, and they involve developing relationships if you know your fund-raising you know that last year, out of the three hundred three billion dollars, it was raised about eighty three percent when you include request come from individuals and individuals will give to small groups, and i’ll give to big groups, so the rules on how you raise that money, the art of the ass is the same. In a little group, you use the same technique to get twenty five dollars, as you will use to get a million dollars, it is developing a relationship, knowing howto ask knowing how to devise your mission statement, knowing the process and the rules and fund-raising knowing what you’re bored should do and that should be and knowing the ethical issues, whether you’re dealing with a little group or a big road, which harder with a little good bye don’t knock it you also perhaps will you social medium or with a little girl? I’m not sure i’m no expert on social media we brought on to our staff of the heimans center last year, marcia vanik she’s, an expert, and she has tried to persuade me that things like facebook and twitter and all that stuff have some value. I am totally illiterate there, but i respect the fact that the coming generations will use it more, particularly the small organizations, and i tell the small organizations, don’t ignore your financial status. Be sure if you can’t afford an audit, at least have very strict rules and how your money is handled. Doug white’s book has a whole list of cases in which organizations big and small got into terrible trouble because they weren’t careful and how they handle their finances. And that is true in little groups as well as big rooms, and that doug white book is charity on trial and that but that goes back to the trustees relationship and trustees obligations even for us, even for a small shop there’s a board and maybe a board of only three or four people, but they have the obligation to be aware of the things that you’re talking about under the law. Whether you’re a big organization are a little charities bureau, which is the hand of the attorney general in the state of new york will look atyou and look atyou carefully and don’t make mistake. I’m not here selling doug’s book i couldn’t give any i’m not interested in that. The only reason i pointed out is that it has in it the cases that are very important for you to understand, and you have to know all the people that got in trouble. Let me give you one example, the american red cross during the nine eleven tragedy, they got in a lot of money, and they used a whole bunch of it for the purpose that nine eleven required that a little bit of money he left over the director of the red cross, one of the most terrific people in the field used that money for the blood drive. She didn’t put it in her pocket. She was fired. Why was she fired? Because the law says if i take money from you for a and i use it for b you’re wrong. I have to use that money for a unless i write to you and i say to you, do you mind if i use it, etcetera? So they’re a little things like that that if you were a fundraiser in this room or a boardmember you have to be very sensitive to whether you’re a little gay root for a big room. We have just a minute or two left. What is it that concerns you most about the charitable sector over the next couple of years? One to two years? Where? What do you think about most what keeps you up at night? Well, i think that competition is very it’s going even increase and the government are cutting back drastically. And so on the shoulders of the non-profits we have to provide for the help that the poor need the abused women or the st joseph’s, full kitchens and all the social services that keep our society going. There’s a book that somebody called claire got eonni road that has wonderful. Chapters on how capitalism could not exist in this country on regulated capitalism without the help of the non-profits we provide the helpful the people that fall between the cracks in our society, and i worry that with the government cutting back and the competition the way it is it’s going to be hard and hard and harder also europe which never was here before, is now facing the situation where their governments are cutting back. They never had a non-profit sector, they relied entirely on government support. Every university in europe is supported by the government. Oxford cambridge is so bone, everyone now oxygen has an office in new york, cambridge has an office in new york and everyone overseas we have more people in our class is now trying tto learn fund-raising from europe, asia, china, every place that’s going to give you a great deal of competition, and so i don’t spend nights worrying about it, but i am certainly concerned about it, and i would hope you find may end that i’m too old to see the end of it, but i would like to see fund-raising fundraisers given the recognition that they deserve and huge. Haven’t you in this room have that obligation to be proud of what you’re doing to make certain that when you work in any agency, people know that without you, that agency is going to close that? This is a dignified profession, and you have to carry that flag. Naomi levine is the executive director of the george heimans center junior junior center for philanthropy and fund-raising at new york university. Thank you very much, mrs loving. Do we have time for where i think you have time for maybe just one or two is your question? Go ahead. Carol weaver, please just shout it out. I’ll repeat it. Go ahead. What do you think about in-kind fundrasing coming together to create a voting we are. Your economy, i i’m told of if we bound together issues way could be a voice in already for your force, which of course, i’m very hyre and for other things, like maybe creating a bank for non-profits you know, i think it’s the variance say, when you make a finger together, you make a fist way have concerned with go ross the industry could we not consider, and i can’t think of a better well, but there are s o the question is generally about how the non-profit sector could organize to be a more cohesive voting bloc now, but their organization like independent sector, you know, so there’s that what else would you like to sell? Well, i can say is most of those organizations are run by their executives, as most organizations are in the average member plays a very minimal role in your right. If the average member played a bigger role and then insistent, i’m sure you think then you would have more effective involvement in albany and other places, but you have the organizations around there’s, a million of them it’s just said in my book there, not doing anything, uh, along the lines. And i think that should be done, yeah, does independent sector is that one of the groups that opposes broader on government oversight, so nobody should fortuny chelation hearts of then that would be, yes, doug white does, even though you panned his book, doug white support, sir, we’re gonna have dug it up for rebuttal after this. Is there another? Is there one more question? If we have time before mrs levin leaves? All right, please join me in thanking her again. Naomi living. And my thanks to naomi levin and her team at the new york university heimans center next week, it’s feared more than death, not the dentist public speaking lori krauz public speaking and presentation skills coach will help you through the fear of your next appearance in front of an audience then scott koegler, our tech contributor, will introduce us to pinterest pinterest dot com the skyrocketing social media property what’s in it for your non-profit keep up with what’s coming up sign up for are in sad or email alerts on the facebook page, like the page you can listen live our archive for i carve listening, go to non-profit radio dot net and that’s where you’ll find our itunes paige, if you are an itunes listener, if you’re if you’re getting this podcasts and subscribing, could i plead with you to goto non-profit radio dot net and leave a review there on the itunes? Paige? I know you don’t have to go backto. Listen, i know you get the podcast automatically, but if you could, i’d be grateful for a review at non-profit radio dot net the following is a public service announcement because i have a soft spot in my heart for belmar, new jersey do you need dental care? Visit the offices of hannah pole dental care in belmar on friday, march twenty third to receive free dental services. Everyone is welcome, regardless of where you’re from, care will be offered on a first come, first served basis. For information, call seven three two six eight one two two two, five that is organized by dentistry from the heart. The show is sponsored by g grace and company. Are you worried about the rising cost of rent for your organization? Do you need a plan for real estate? You’re non-profit owns g grayson company will give you and your board a full analysis. George grace has been advising non-profits on their real estate decisions for over twenty five years. He offers listeners a complimentary thirty minute consultation. G grace dot com or eight eight eight seven four seven two two three, seven our creative producer is claire meyerhoff. Sam liebowitz is today’s line producer shows social media is by regina walton of organic social media and the remote producer of tony martignetti non-profit radio is john federico of the new rules hope you’ll be with me. Next friday, one to two p. M eastern. Here at talking alternative dot com. I didn’t think that shooting. Good ending to do. You’re listening to the talking alternate network, itching to get to thinking. Duitz duitz you could. Looking to meet mr and mrs wright but still haven’t found the one. Want to make your current relationship as filling as possible, then tuning on thursdays at one pm for love in the afternoon with morning alison as a professional matchmaker. I’ve seen it all with distinguished authors, industry coolers and experts on everything from wine to fashion. 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024: Ethics with Doug White – Tony Martignetti Nonprofit Radio

Tony’s guests this week are:

Doug White, author, “The Nonprofit Challenge: Integrating Ethics Into the Purpose and Promise of Our Nation’s Charities”
Academic Director of George H. Heyman, Jr. Center for Philanthropy and Fundraising at New York University

Read and watch more on Tony’s blog: http://mpgadv.com

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Dahna welcome to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent? Do you feel that your non-profit is left out of the media out of conversations with consultants? You have a home here at tony martignetti non-profit radio, maybe call. Last week, we had the bank of america merrill lynch high net worth study, and my guest was the bank’s study expert claire costello, also last week, enviable e newsletters with the newsletter editor and our show’s technology contributor, scott kegel er, that was last week this week, it’s ethics our i’m really excited, very pleased. My guest is doug white, and doug is the author of the non-profit challenge integrating ethics into the purpose and promise of our nations. Charities that’s available at amazon dot com doug is with me live in the studio to talk about ethics and the role and the potential of non-profits in our culture on tony’s take two at thirty two minutes after the hour, i’m going to talk about sexism in the workplace based on my most recent blawg post and also give you ah, on ira e-giving reminder, there is an opportunity for two thousand ten remaining. For the rest of this month, we’ll talk about that on tony’s. Take two. After this break, i’ll be joined by professor doug white, and we’re going to be talking about ethics. Stay with us, co-branding think dick tooting getting ding, ding, ding, ding. Duitz you’re listening to the talking, alternate network, get in. Nothing. You could. Is your marriage in trouble? Are you considering divorce? Hello, i’m lawrence bloom, a family law attorney in new york and new jersey. No one is happier than the day their divorce is final. My firm can help you. We take the nasty out of the divorce process and make people happy. Police call a set to one, two, nine six four three five zero two for a free consultation. That’s lawrence h bloom two, one two, nine, six, four, three five zero two. We make people happy. Are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? Call us now at to one to seven to one eight, one eight three that’s to one to seven to one eight one eight three or find us on the web at www dot double diamond wellness dot com way. Look forward to serving you. 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 welcome back to tony martignetti non-profit radio my guest this hour is doug white. Doug is the academic director of new york university’s heimans center for philanthropy and fund-raising, where he also teaches ethics based fund-raising and board governance he’s, also a senior governance consultant for board source. His other books are charity on trial, published by barricade books and the art of planned giving published by wiley. And i’m very pleased that his most recent book, the non-profit challenge, brings him to the studio today. Doug welcome. Thank you, it’s good to be here. The purpose and promise of non-profits our nations, charities. What was the purpose of your book? Maybe it’s a stunning preface, but i’d like to say that i think the charities have the most promise in terms of acting well in our society. They also have the most promise in terms of leading society. At the same time, i think there are a lot of ethical issues and organizational issues, board issues and so forth that impair charitable organizations when they are trying to do the right thing, but oftentimes don’t so they have a large mandate, i think, and this is just my own. Personal feelings that charities are the ethical sector of society, charities were designed primarily and pretty much solely to do good mor so then government or business, the other two sectors now, that doesn’t mean they’re not ethical. That doesn’t mean they’re not good, but we wouldn’t be around if it weren’t for that goodness component, and we really need to take that more seriously than we do let’s start with a common understanding of ethics. What? What is your definition of ethics? Well, it’s, funny, you ask that question because i’m asked that all the time in my classes, and i have to take pains because a lot of the times when i talk about ethics, people will want to sit in the back of the room and they think they’re going to get yelled at because they’re not ethical or they’re not making the right decisions or they’re just not good people and that’s really not how i look at ethics, ethics is really a process, not a result. If tony, you and i can actually say to each other that two men or two people can disagree to good, people can disagree, and we can’t really mean that because we get angry with each other, if we disagree, then we’re really not giving that any credence. What we really need to do is understand each other’s values the process by which we come to an understanding, and if the purpose of ethics were to find agreement, we would have no success whatsoever. The purpose behind ethics is the decision making process it for me anyway, the decision making process that goes into an exploration of our values and waiting those values and so forth, and then coming up with a reason. And i would call it an ethical decision that may be different from yours. After having gone through that same process, i would have to respect that, and you’d have to respect my process and that’s part of that’s an an essential part of the ethical making ethical decision making process respect. And you say in the book that ethics permeates everything. I i stand by that, yes, it permeates everything now doesn’t permeate what you’re gonna have for dinner tonight. That kind of ah decision no s ow when i say everything, i mean everything important, but anything of significance oftentimes involves values, anything that involves values might be bringing up issues that were going to make us defer, and in the process of that, we’re gonna have a problem if we dont have respect, if we don’t look at it as an ethical decision making process and but even in what i do choose to have for dinner or how i feed myself generally, there can very well be value based ethical based decision making in that as part of my my thought process, right? Thank you. You’re so right about that. I was thinking of it, more of let’s say a spouse and husband and wife are going to decide what to have for dinner. That doesn’t matter to anybody else, but what you’re actually pointing out here is that it doesn’t matter if you’re thinking of being if you don’t like meat or something like that on ah larger ethical basis, absolutely it could very well have an impact on that decision again. The subtitle to your book you know the purpose and promise of our nations charities do you think that we have just a minute, a half or so before break? Do you think our nation’s non-profits have lost the public trust. Um, i don’t think they’ve lost it. I think that the public trust is ah, very strong commodity in our country, and we’re very fortunate to have that trust. I think there are people in the united states who are becoming more, they’re becoming more interested in the way charity’s operate. And because charity’s air having showing so much more force in society, the questions are more important than their more more, they’re louder. And so, my my concern is that charities they haven’t so much lost, the trust of the public is they need to. I think i have a better understanding of what that trust means and to respond to it, and the questions being asked are deeper and more insightful. Absolutely, yes, we’re going to take a break. My guest is professor doug white, author of the non-profit challenge. This is tony martignetti non-profit radio stay with me, talking alternative radio twenty four hours a day. Are you feeling overwhelmed in the current chaos of our changing times? A deeper understanding of authentic astrology can uncover solutions in every area of life. After all, metaphysics is just quantum physics, politically expressed, i and montgomery taylor and i offer lectures, seminars and private consultations. For more information, contact me at monte m o nt y at r l j media. Dot com are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam lebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future you dream of. Two, one, two, seven, two, one, eight, one, eight, three, that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. I really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. Mind over matter, health and fitness could help you get back on track or start a new life and fitness. Join Joshua margolis, fitness expert at 2 one two eight six five nine to nine xero. Or visit w w w dot mind over matter. N y c dot com you’re listening to the talking alternative network. Geever welcome back to the show, of course. My guest, professor doug white, author of the non-profit challenge. Integrating ethics into the purpose and promise of our nations. Charities don’t ask about the tv show the philanthropist. You talk about a little in the book. Why do you think that failed so stunningly? Well, it certainly had nothing to do with philanthropy that’s, for sure, i think it failed because it was so shallow, and this is one of the problems when we talk about philanthropy and certainly with ethics, is that there’s a way of telling a story and then there’s a way of being in the moment of the actual job, and sometimes when you tell the story and then it goes through several rewrites and several editors network, a major network like nbc, you’re going to lose a lot of the you’re going to lose a lot of the effort. So my feeling is that if you ask, it just became a shallow piece of nothingness. Yeah, i didn’t see much philanthropy in the in the siri’s no, there wasn’t, and this is one of the problems with the mass media. There is such a delusion of the important aspects of things in every area, and this is certainly true in philanthropy to and certainly an ethics that when you get so diluted there’s, no story left except for the one bank stuff that the producers think will be interesting what’s your sense of of why people give to our non-profit sector either time or money or or their talent, i really do think there’s a sense of giving to help other people. I really do believe that some people call that altruism. If you look at the definition of altruism in the dictionary, it couldn’t be because altruism says you cannot have any personal benefit back. And i think a good feeling from having done what you have done is a benefits. So i think in a way, there’s, no way we can be truly altruistic. But i do believe we as humans haven’t have ah, a way to think about other people and their tragedies. Three weeks ago, i would have mentioned haiti as one of the examples. Today i can talk about tucson and the outpouring of of of this indescribable feeling of wanting to reach out and make the world a better place for the people who are suffering. I think that’s a big part of it. I think that’s the major part of some people, will say that taxes play a large rule. I’ve talked to enough accountants and attorneys. You might get that impression, but you mentioned a high net worth study, they think. Exactly the tax tax motivations always low, always low, even among the people. For whom it’s most important it’s still not that important. So there i think that it is that and i don’t think it’s an american characteristic, a lot of people say, isn’t the united states the most generous country in the world and that’s true, because we give a lot of money and so forth. But i don’t think that it’s ah it’s bounded by national borders. I feel like there are people around the world that we don’t have a monopoly on that feeling of what i would call altruism for the moment here s so i think that’s the primary reason people are our philanthropic there are others but i think that’s the primary well, you mentioned the two sound shooting and there was a chronicle of philanthropy opinion piece this past week by diana aviv. Yes, on dh she heard a thesis is that the nonprofit sector has a role to play in sort of healing and, well, maybe not so much in healing. That’s not right in civil discourse in creating a civil discourse, i think that’s really what she was getting at. Do you think there’s ah role there for charities? I think there is no other place for that role then in charities, i think diana of eve was on target. I get to that issue myself at the end of the book, the non-profit challenge by talking about the sectors. And where do we look for this kind of discourse? Because this kind of discourse is the backbone of ethical decision making. It’s the backbone of acting good and dinah aviv is correct. If she had a book length article, i think she would have gotten into some of the details. One of the problems is, is we talk about those in highfalutin terms that we have this ability to do this. We we want to be change makers. There’s ah, a lot of evil in the world and so forth. My concern with that is not so much that we don’t recognize that as a general idea. But how do we get it specific? How do we make that happen? And that article didn’t go there. I’m not saying it should have, but we need to go there’s charities and ask those tough questions because she’s right, the non-profit sector has a tremendous role, a tremendous responsibility. Do you think we’re going to get it from business? I don’t think so, and that isn’t to put down business, but that’s not where we’re going to get that answer is not their role and the government. I mean, i’m not really a big fan of government regulation because it’s always this great big hammer and we’re trying to get a fly dun and the regulations usually don’t do the job. So how is that gonna happen? It’s gonna happen in the ethical decision making process? This is gonna happen in what i call the ethical sector, the non-profit sector on that part on that point, i would say diane is right on target, and we’re going to get teo your four pillars of ethical, the ethical process? Yes, we’re going to get to that. What about the, you know, also very timely in the news, the buffet gates challenge to their to their fellow very ultra high net worth people americans mostly not exclusively, mostly the sort of a backlash that that that creates aa concentration of national priorities in the hands off roughly forty families and mostly in the u s do you do? Do you feel that kind of concentration? Do you? Do you think much of that? That backlash argument? Well, it’s interesting, you ask that question? Because right after Mark zuckerberg became the 57 that was interviewed on that point and that question was asked, and i wish i had with me the quote, because i put this up from time to time when i’m doing my talking, lee, then ask who says this, but basically, is that what you’ve just said? We have to be ah aware of those organizations or people who would usurp government activity, and this is george washington in his farewell address spoke to that very issue because what’s going on right now on guy think that bill gates and warren buffet and other philanthropists are wonderful people and they’re doing wonderful things, but a lot of the question comes from who are they to make the decision? Who are they to say, for example, that charter schools are the best way to go? They may be, i’m not making that argument one way or the other, but your question is were really relying on these people of wealth to make. National decisions and as a result of that, this past year, this growing issue i’ve developed a course at n y u for the masters that i’m teaching next year on public policy and philanthropy and how they intersect because that question is philosophical to the core, and it concerns me a great deal that there’s a lot of wealth concentrated in just a few people, and those people will have an inordinate amount of sway when it comes to public policy. But they have altruism at their roots, don’t they? They do. Did i say this was a black and white question? You’re absolutely correct, tony. They have altruism at their roots and they want to do good for society. They want to do well, they want to do good weaken talk about that distinction in philanthropy, but but this is the issue when it comes to philanthropy in general it’s not all black and white. I’m with doug white, and doug is a professor at the gnu heimans center, also the author of the non-profit challenge integrating ethics into the purpose and promise of our nations charities don’t you talk some about some stunning disasters that charities have? Suffered the madoff scheme, the smithsonian institution, stevens institute of technology, emory university, the national heritage foundation. What what can we take away from these crises? Well, the first thing i want to just mention is that it’s important to be specific it’s important to be riel a lot of times when we’re going to conferences, as we were talking before the show began, we talk about charity, eh? Or donorsearch being or this guy or that guy, we don’t get specific and a lot of the times what we what we don’t get as a result of that are the real issues that make the problem. And so in my books, i’ve been very clear about wanting to say, ok, the red cross you did bad smithsonian, you did bad you shiva, which is the made off example that i used you should have done this not because these people are bad or these places are bad, but we need the reality is of things because every other organization is itself a real place and things can go wrong. What we need to take out of this process is that a first of all it’s not going to be under the rug any longer. The public is too interested in this. The media are too interested in this, and they’re going to follow this kind. Of a thing up, and if they don’t, i will, you will in the world is just a different place from what it was five, ten years ago. Now, on top of that, what charity’s need to take away from this is that they need to step up to the plate and be riel they can’t hide the fact that their investment share is also the person where the who’s getting the money to invest and taking a fee from that they can’t hide, that they’re going to dip into their endowment as opposed a cz against what their donors wanted to have happen. That is no longer something that’s going to happen behind closed doors and that’s i think what charities they need to see that sunlight and you don’t you don’t think they have these issues top of mind and their processes, they’re not accommodating that sunlight. I do not think they do right now, a lot of them, not all of them, a lot of them. Yeah, we’re generalizing. I don’t mean to put you on spot say, although the entire charitable sector that doesn’t, nothing applies to everything within a within a community you do see? Ah, good number of a good percentage of the charitable sector. Not answering the call to this sunlight. That’s? Correct? Yeah, i think. And that’s that’s the issue for me. Because of all of the organizations in the united states in the all three sectors, charities ought to be the most comedy tow that you hold your charities to quite a high standard effect, the highest of the three absolute sectors of our economy. Yes, i do. And it represents sort of what? Roughly what percentage of our gross gross national product of gross domestic product? I’m not sure which i think they changed it. The gross domestic product is a while back, so i’ll go with that. And i again think it’s somewhere between it’s fairly large ten to twelve percent. Well, no one really knows. I think maybe you do, but i think it’s somewhere on ten to twelve or maybe fifteen percent of our gross domestic product, which is not a small amount of change now, considerably. No, i think that product is roughly fifteen trillion dollars. Okay, roughly a trillion and a half dollars. Yeah. You you talk about the four pillars of ethics and i want to start toe, get into sort of the substance of the ethics process that you’re you’re advocating? Really? Why don’t you want to tell the audience? What are those four pillars? Well, wait, talk about these words have been known to go we’re talking about how we say phrases and they’re kind of airy and we don’t get down to the details of them. The phrase you had it a minute ago that you’re going to show me the out of the book the phrase for example, transparency, you know, just take a look at that the phrase transfer their word transparency, the word are the phrased disclosure, disclosure, conflict of interest, those air all words that we use nowadays they’re buzzwords we talk about them say, well, we we are we want to be more we want tohave disclosure, we want to be sure we don’t have a conflict of interest, we want to be transparent, and then everybody dances around that. But what does that mean? And so not only are they what i think are the four pillars of of ethics because they asked the charity’s themselves to do the work to get the word out. To get the honesty out to get the ability for anybody else to find out that honesty, i talked to a charity in washington, d c an awful charity who felt that it was doing everything it should because it files nine nineties, as if they should be rewarded for following the law and that’s just the wrong standard to use, especially for a chortle that’s just getting by. That’s just getting by, you know, that’s not anything to brag about, but what we’re so that being understood, what is that level? Where do we go, how do we become transparent? What does that mean? What do we tell people? How do we let them know what that is? Well, today, it’s, easier than ever. We have websites. Why don’t people have their own nine nineties on their websites? Why do they not only not have them, but if they did, why would they only go back three years? Oh, well, that’s, because we’re required to only go back three years. That’s, not the answer. We’re going tow. We’re going to take a break, and when i return, of course, doug white will stay with us, actually, right after the break, it’s ah, tony’s take to doug white is going to stay with us. We’re going to talk in detail about the four pillars of ethics on the fourth one that didn’t, but doug doug did not mention yet is oversight. We’ll talk in detail about those and get into that process of ethical decision making. This is tony martignetti non-profit radio. You’re listening to the talking alternative network. This is tony martignetti aptly named host of tony martignetti non-profit radio big non-profit ideas for the other ninety five percent technology fund-raising compliance social media, small and medium non-profits have needs in all these areas. My guests are expert in all these areas and mohr tony martignetti non-profit radio fridays one to two eastern on talking alternative broadcasting do you want to enhance your company’s web presence with an eye catching and unique website design? Would you like to incorporate professional video marketing mobile marketing into your organization’s marketing campaign? Mission one on one media offers a unique marketing experience that will set you apart from your competitors, magnify your brand exposure and enhance your current marketing efforts. Their services include video production and editing, web design, graphic design photography, social media management and now introducing mobile marketing. Their motto is. We do whatever it takes to make our clients happy contact them today. Admission one one media dot com 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 welcome back to tony martignetti non-profit radio big non-profit ideas for the other ninety five percent time for tony’s take two on today’s show. First thing i’d like to spend a moment with is workplace sexism. I blogged about this in november, and then again just about two weeks ago or so, confirming what i had asked in november, which was, does sexism still exist in the workplace? And i was embarrassed to say in the in the second post, just two weeks ago that i didn’t realize yes, it does. I shouldn’t have even bothered in november asking the question i should have just gone right to the declarative and said sexism does exist in the workplace and the comments that i’m getting on that the most recent post just ten days or two weeks ago some very poignant stories, so suggesting it’s something you might want to take a look at management and boards just ignoring federal law that prevents is supposed to be preventing ah, create sanctions for sex discrimination organization policies being ignored and even to the point of one woman telling story about her daughter, who is a professional fundraiser who ended up quitting her. Job because she was being set up on dates with donors, sons, those comments and all the other stories that are attached to that post you’ll find on my block at m p g a d v dot com in the name of the post is sexism confirmed also want to share with you last minute e-giving opportunity for i r a gift. So under the tax relief act, which president obama signed just a couple of weeks ago, there is a provisioned for donors to make two thousand ten ira gif ts this month on ly the month of january and what you might do is look to donors who have multiyear pledges who may want to accelerate those pledges, and they could do that in the month of january by making a gift that counts toward there mandatory required distribution of their ira counts toward two thousand ten, and then again this year, they could make another gift, which counts there toward their two thousand eleven mandatory required distribution. So if you have those donors who maybe are willing to help you with a two thousand ten shortfall in your fund-raising or as i said, maybe they have multiyear pledges and they’d like to accelerate those pledge payments. Those would be good prospects to talk to you for this opportunity it expires at the end of this month the counting the gift for the two thousand ten is on ly good for the month of january, then for all the rest of two thousand eleven, the ira possibility remains, but it would only be for two thousand eleven minimum required distributions, and you’ll see that block post that’s called gift possibility remains for two thousand ten ira rollovers and that’s also on my block at mpg a d v dot com i’m with doug white, doug white is with us, and we’re talking about his book the non-profit challenge integrating ethics into the purpose and promise of our nations charities, you’ll find his book as well as his other two at amazon dot com and right before the break, doug, we were just talking about your four pillars of ethics just wanted just quickly name them, and we’re going, we’re going toe talk about them in a little detail, but if you just name the four pillars, okay, we have, i think, disclosure and transparency, which are quite close to another and we have a conflict of interest, and the fourth one is oversight on dh those for all our very subjective terms. They don’t have black and white ideas, but i love that you call them pillars. Killers are not mushy, subjective relative things there’s are typically granted or concrete and their towering that’s kind of what you call them pillars. I think you’re absolutely correct and looking at that because i feel that they are the pillars, without which charity will crumble. Would you mind reading this paragraph from doug’s goingto read one paragraph from page one fifty three of his books book, talking about these pillars. Four concepts form the backbone of ethics that non-profit organizations the one we just discussed, actually, charities would do well to structure all of their activities around these practices. Every decision should begin by searching for a fidelity to those words. The people making decisions should ask themselves whether they would do the same thing if they knew their actions would be disclosed to the public to ignore the growing level of interest the public and the regulators have in charities or worse to fight them is a loser. Idea. Akin to automobile manufacture. Emperors fighting the requirement to install air bags in all cars. Doug, how do we ensure fidelity to those four pillars? We don’t we can only hope we can only strive, and in order for that to happen, we have to have a humility about who we are and what we’re trying to accomplish. I can look at examples very small, for example is the smithsonian institution who did not bring that kind of humility to his job at the smithsonian. Now you’re not going to hear a lot of people say that because i love the smithsonian and we don’t liketo talk that way about our own, but until we do, i think we need to be honest and until we are that we’re goingto allow people to not be human humble, to not be honest with themselves, and then we won’t be able to accomplish this objective. I’m not sure we’ll ever accomplish it because it is it’s a high standard, but i think we need to have people who know that the non-profit sectors different from business and government is not business light it’s not like another way of doing business non-profits have a special place in society. They have a special place in our hearts, they have a special place in history, you know what i mean? By history’s going back thousands of years durney the idea that we don’t have an extra moral purpose as humans when we run these organizations which are designed solely to help society in a way that neither business nor government can do. The idea is so profound that we need to call upon the best of who we are as human beings. And part of that is an examination would be those four pillars. And in order for those toe really stand as pillars, we have to take them seriously. We have to examine them. We have to examine them in terms of the in the context of the organizations that were running as as well as who we are, ours leaders off those organizations and nothing can be taken for granted. One of the issues with with ethics in the decision making process is not to put yourself into a different place from everyone else. This is what bill aramony did at the united way and that’s why everything went downhill during the late eighties and early nineties. Now the united way of america. Back then, it was the united way of america is a wonderful organization, but he decided he was better than anyone else in the organization. He decided that it would be that the organization would do certain things, and he decided how some money would be run and that’s not the way to do it. So we need fewer bill aramony’s, despite how wonderful a job he did until that time to bring the organization to a very high place. We can’t have the larry smalls of the world running charities. Larry smalls, please tell us at the smithsonian, i’m sorry, the smithsonian, we can’t have that not because he’s a bad guy, he’s a good guy, but he didn’t get the non-profit ethos lost his humility. He lost his humility here. He didn’t have it one of the other. The point is we can’t say it’s, okay for me if it’s not okay for you that’s part of the ethical decision making process and charities have to embrace that they have to embrace that wholeheartedly. That’s another part of what i love about the quote that i asked you to read, which is, would you do the same thing if you knew that everybody was looking at you? Absolutely. And now some people ask that question and ethics and say, well, you have to be aware of what the new york times might say on its front page tomorrow. Well, you do, but that doesn’t necessarily mean you wouldn’t do it. Question is, can you defend it? Can you honestly say that this was the right thing? You know, the newspaper might get it wrong. The general feeling of the public might be wrong. You would have to stand by your values, but you can’t do it by just saying i’m right and you’re wrong. See a lot of people i know in this town anyway, okay? And then why you think that bush should not have gone to war with iraq? Ok? They think they should not have gone to war with iraq. I say, look, let’s agree with that. But if bush president bush had done one thing, he would have been a lot better off if he had been honest about why we had gone to iraq. He could have said, i know there aren’t any weapons of mass destruction, but i feel that saddam hussein’s a really bad guy and we got to get rid of a lot of people. Would have disagreed with him. That’s okay, but at least he would have been honest. And he would have said, these are my values. These are the values i think the united states ought to bring into this process. That’s what we need tohave we can’t always go around saying, oh, i hope i do something that everybody will agree with, and if i don’t, i’m just not going to tell anybody and hope that nobody understands. We’ve got to be clear about being honest about what we do. An example you you spend some pages on in the book is the metropolitan museum of art, whether they should i have put our scent art to las vegas on loan to the bellagio. So now he’s world class art museum talking about world class art in one of the richest places in the world. Las vegas why don’t you take the story from there? Actually, that was the boston museum. It was boston museum in new york. Centric course. Everything happens in new york. I’m surprised supplies las vegas is not new york. Ok, sorry. But i used that example not to say anything bad about the organization, but to show the challenges that come up in governance, and this is part of oversight and part of what governance ought to be at boards source. They teach clients about governance as leadership and all of the questions that come up. But let’s say you run an organization like the metropolitan well, you can use that they have wonderful pieces of our it could’ve taken out to las vegas, this den of iniquity, this is this is culture. We can’t have that we can’t be lending our name into this this place and a lot of places would let it go at that. But then this museum up in boston said, well, what are the pros and cons? What are our values and what that might be g would it be better for more people to see this art? Would that be a good thing? And the answer to that question is yes would be associated with las vegas. We a bad thing? I mean, this is boston after becoming like, my goodness, that would be a terrible thing. See away the right versus the right. Rushworth kidder, one of my heroes when it comes to ethical decision making, who runs? In a non-profit in maine talks about right versus right all the time because if we’re talking ethical decision making, we’re talking about ethical dilemmas. We’re not talking about the obvious right versus the obvious wrong. We’re talking about a dilemma right versus right? And in that particular example, there were two rights. One is we’re going to have a problem with our image, the second oneness, and confronts it in conflicts with it. And that is the idea that more people will be able to see our our work, and they ended up doing the deal they did, and they took some criticism for it. They did, but you looked at their process and and it’s outcome the process was key and to try to avoid criticism, it’s a loser’s game and it’s not even it’s, not even a worthwhile goal. Who would want to live in a world where everybody agrees all the time it would take away ah chunk of our humanity that i don’t think we’d be a world a tte leased the one that i would recognize without it. So forget the idea that we’re always going to agree, in fact, when i go into a room and i learned this when i worked in politics in the early seventies, the fellow said. Well, i could go into the room full of people who agree with me, and i could go into a room full of people who disagree with me, which where should i go? I said, we’ll go with it where they love you, he said, no, i go into the room that they disagree with me because that can change their minds. I can talk to them. I can hear what they have to say, and i’ve never forgotten that that’s part of the idea here, i want to get into your the process that you recommend that you advocate but let’s talk so a little in leading up to that more the detail of the four pillars you said disclosure and transparency very close, but you do make a distinction in the book. Why don’t you make that first? Well, i think that disclosure is the ability for people for a charity to teo wth the idea of a charity allowing people to see the what’s going on. We have to disclose things, aunt, i’ll come back to that in a second, with an example, transparency from my perspective is the ease that we allow the public to see are what we disclose so there’s a distinction there, but the reason i make the distinction is we’re saying those two words all the time as if they were different and they are different, but we never really make that distinction. We’re always talking about it is that it goes away. Let me give you an example of disclosure. I sat on in nineteen ninety five for the dahna philantech protection act, the texas case and we we got this bill passed and a required disclosure with gifts that were planned gifts that we’re co mingled and we’re really happy the sec wanted this for twenty years now is a federal law. A lot of charities didn’t like it, but i was happy, so they said there needs to be disclosure. Great. So the next day, after i had testified to this and after it had gotten past, i called the head of the sec, barry barbash and i said, oh, gosh, we’ve got to ask this question what does disclosure mean? What’s the definition he said that’s up to you, that’s up to you, you have to do that for yourself, and actually the law says reasonable disclosure reasonable, which is even, you know, so, you know, the issue is we are responsible for deciding that and so and it can’t be run by a bunch of lawyers because after that gift annuity disclosure statements were fifty pages long, they were all pretty much filled with legalese. Do you know what barry barbash said when i said, i’m having difficulty with your answer, he said to me, if a seventy five year old person he said, lady, so i’ll just say that who doesn’t understand finances doesn’t understand what you’re telling her in this disclosure. It’s not disclosing anything now i think of that that’s profound it’s not disclosing anything, you could throw a bunch of stuff out, and if it doesn’t tell the person anything it’s not disclosing anything, is it fair to say that you envision you see it transparency as sort of the mindset of openness and then disclosure as the process the practice of disclosing yes, yes, ok, and that mindset, the transparency being reaching out to the public, the donor of the public and saying this is the way we’re going to make it easier for you to understand what we’re doing just in the thirty seconds or so. What we have before a break, let’s, talk about avoidance of conflict of interest. Oh, yes, a third pillar, thirty seconds on that. Well, i i think conflict of interest needs to be disclosed. Okay, bringing those two ideas together. It’s not always going to be avoided, but it should be disclosed, and the issue isn’t so much that it always that it exists. Sometimes we can talk about this later, but that is not disclosed. My guest is doug white he’s, the author of the non-profit challenge. This is tony martignetti non-profit radio stay with us. Talking alternative radio twenty four hours a day. Are you stuck in your business or career trying to take your business to the next level, and it keeps hitting a wall? This is sam liebowitz, the conscious consultant. I will help you get to the root cause of your abundance issues and help move you forward in your life. Call me now and let’s. Create the future. You dream of. Two one to seven to one eight, one, eight, three that’s to one to seven to one, eight one eight three. The conscious consultant helping conscious people. Be better business people. Dahna i really need to take better care of myself. If only i had someone to help me with my lifestyle. I feel like giving up. Is this you mind over matter, health and fitness can help. If you’re expecting an epiphany, chances are it’s not happening. 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We’re talking about ethics and his book the non-profit challenge and doug were at the fourth pillar of of ethics, which is oversight. Don’t you say a little about oversight? Oversight is pretty much the domain off of boards, and i think the board’s oftentimes don’t understand the seriousness of their job. They are the legal backstop oven organization, they are in charge not only of keeping it safe financially and otherwise legally, but also they’re in charge of its leadership. They’re in charge of looking toward its future, they’re in charge of that charity, and so if they don’t have oversight on dhe mentioned earlier with the united way with stevens and with all of these organizations where there have been problems ah lot of that could be traced back to the lack of oversight on the part of the board or the lack of oversight on the part of the senior staff. So the board has tohave a sense of seeing the organization of overseeing its activities. It has to take a seriousness in that approach because they are who they are, they’re they’re the people who are responsible. For this organization they cannot allow, no matter how good, no matter how smart a ceo or us on executive director might be to just work alone without any sense of, uh, answering to the board. So the board has to take that very, very seriously, and that will mean doesn’t matter that they pay, you know, one hundred dollars a supposed one hundred fifty dollars, for ah lunch or something for the staff or whatever. I’m talking about the big picture and people will say, of course, you know, boards are very interesting the big picture there go cardio overseeing what’s going on, but that’s not true look at yeshiva, who lost all of that money and made off the payoff scandal. That is a pretty big picture, but people say, well, i trust this other person who’s on the board or i trust the person who’s investing the money. Nobody looked a trading slips because there weren’t any trading slips that was too much of a detail, so who’s going to look at it? Well, the board should ask about that. Even if you’re not, you don’t have a lot of financial acumen or investing acumen. You should ask that one of the people asked on the harvard boards said, but if we got into all of these alternative strategies, which reduced liquidity, but increase the value of the portfolio and we then got into a situation where we didn’t have that liquidity, where would we get it? Because you know what the students need, that this is what keeps the place going that was asked by someone who wasn’t even part of the investment process, so it takes i think, for the oversight of people who aren’t the expert but who care and that we’re smart and that responsibility is won’t make this explicit, of course, is a legal responsibility that board members have, yes, the under the laws of fiduciary duty, right? I heard that there of the nine million board chair board occupancies in the united states, four and a half million were vacant a couple of years ago because there was so much difficulty getting board members on the charities. My question is, i’m worried about the four and a half that are not vacant, you know, the ones that are filled by people who don’t know what they’re doing don’t just in the few minutes we have left. Let’s, bring these four pillars together into ah, what you advocate is the process of ethical decision making. Yes, there’s. No real blueprint for this because every organization is going to be different and it’s a subjective process. But the question here is, do we know what the big questions that we have to face are, for example, let’s, let’s. Look at investing, for example, the are investment portfolio is x do we want to have? What kind of a mix are we going to become more risky? Do we want to become more conservative? There’s? No right answer within that. But when we get there, when we answer that question based on other values, then we want to make sure that the investment makes is correct. And if we get out of that, we want to know. And so there has to be a process to know. And there has to be a process to ask the question to begin with. So you you know, you walk in there, you say here’s a slate, a blank slate, one of the large questions, and i wouldn’t recommend a charity start. Simple. Take the five largest. Questions they can imagine asking on saying, how are they going to answer it and then go deep and deep, deep down to the details of that process using the ethical decision making process? I’m not going to accept myself because i’m special. I’m going to get a cz much information as i possibly can in the process of making a decision not just the information i want but everything, and then i’m going to make a decision, but i’m going to keep my mind open after that that’s all part of the guideline of making an ethical decision maker of the ethical decision making process. But i would say that charities don’t do this, they do not do this. My guest has been dug white, and he is assistant professor at the and then you new york university heimans center. His book is the non-profit challenge integrating ethics into the purpose and promise of our nations. Charities. You should read this book there’s considerably more detail, of course, that we were able to conserve a kidder. Consider in just an hour, doug. Thank you very much for joining me in the studio. It’s. My pleasure, tony it’s. Been a pleasure having you next week. Savvy strategies to save you from a sexism scene policies you need in place to protect your employees and your non-profit i’m so concerned about sexism in the workplace that we’re going to start devoting cem showtime to it, this will be just one segment. There will be another show in the future devoted to it next week, talking about these strategies to save yourself and your organisation from an embarrassing situation around sexism. My guest will be hr consultant karen bradunas and also next week planned giving newsletters tips to make them punchy and interesting so that your donors actually read them. My guest will be clear meyerhoff she’s, a marketing consultant and also the creative producer to this show, you could get our insider alerts, and i hope you will like us on the facebook page. It’s, of course. Facebook dot com tony martignetti non-profit radio click on the like button. The creative producer of tony martignetti non-profit radio is claire meyerhoff, our line producer on the owner of talking alternative broadcasting. Sam liebowitz and our social media is by regina walton of organic social media. This is tony martignetti non-profit radio always. With mid size and small non-profits in mind, of course, the tagline. Big non-profit ideas for the other ninety five percent. I hope you join me next friday for those guests. I just mentioned one p m eastern here on talking alternative, which you always find at talking alternative dot com. E-giving ding, ding, ding, ding. You’re listening to the talking alternate network, waiting to get you thinking. Duitz are you suffering from aches and pains? Has traditional medicine let you down? Are you tired of taking toxic medications, then come to the double diamond wellness center and learn how our natural methods can help you to hell? 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