Bridging Our Beliefs: Changing hearts and minds about giving to faith-based nonprofits

By Dilnaz Waraich & Lauren Janus

For many Americans who don’t consider themselves religious, making a gift to a faith-based nonprofit may feel awkward or uncomfortable. Our country has a complex relationship with our faith traditions, and many eschew faith-based giving as part of a pattern of implicit basis informed in part by cultural attitudes, racism and even fear of giving offence. 

As philanthropic professionals, we see this all of the time. Often we’ll interact with generous, thoughtful donors who want to give to community-based organizations but stop short of giving to anything “religious.” No conversation needed, let’s move on, please.

As active members of religious faiths ourselves, we see this as a tremendous missed opportunity. In fact, by engaging with each other on how and why we give to faith-based nonprofits, we can change the narrative around the role of faith-based charities in our communities and even dig into our own relational poverty in this country.

Dilnaz and Lauren, how could we do this?, you might ask.

First, let’s explore a few facts about faith-based giving. While religious institutions (mosques, churches, synagogues, etc.) attract a great deal of donations from their members and represent the largest category of giving in the US, faith-based charitable activity doesn’t stop there. 

In fact, 40% of social safety net spending in the US comes from faith-inspired nonprofit organizations. These aren’t religious membership organizations; they are food pantries, homeless shelters, addiction treatment facilities and the like. In other words, organizations that are often hyper-local and focused on meeting the immediate needs of especially vulnerable communities. 

Giving to organizations like these doesn’t mean you’re helping to convert people to a certain faith. Most of the time, it means that you’re supporting organizations so deeply rooted in the communities they serve that they provide a lifeline for beneficiaries, many of whom have nowhere else to turn.

While members of religious communities do tend to give generously to their own institutions, we also know that they tend to give above-and-beyond to non-religious organizations, too.

For example, even though research on Muslim philanthropy continues to be underfunded, the Muslim Philanthropy Initiative at the Indiana University Lilly Family School of Philanthropy has produced a growing body of research. The 2021 Muslim American Giving Report found that “Muslims also are more likely than the general public to give to non-faith-based civil rights causes (11.87% Muslims versus 5.45% general population)” and that “Muslims contribute 27.45% of their faith-based charity to houses of worship” compared to  the non-Muslim average of 51.28%. The report goes on to tell us that “compared to the general population, Muslims have a more positive image of the charitable sector” and are motivated more by compassion than the tax benefits. 

What does it look like to give to faith-based charities? Katie Owens Mulcahy, trustee at Owens Foundation in Chicago, is a Catholic faith-based funder learning more about  the Muslim traditions. She says:

Being in community with funders and service providers from different faith backgrounds has enriched my own faith practices and challenged me to think about philanthropy as a way to live my faith out loud. Experiencing my first Ramadan Iftar was deeply moving, offering me a firsthand understanding of how sacrifice and self-discipline leads to deeper spiritual connection. For example, when engaging with the Muslim-led nonprofit, the Muslim Civic Coalition, I was struck by the group’s  dedication to uplifting all people with compassion, mercy, and justice—values that strongly align with Christian teachings and reinforce my own commitment to philanthropy.

To truly support people—whether physically, emotionally, or spiritually—you must be present and accessible. This is why faith-based organizations are so effective in building trust and fostering genuine relationships. At The Owens Foundation, we rely on these organizations to serve the community because they are deeply rooted within it.

The months of March and April are special this year, because during this period three of our great faith traditions in America–Islam, Judaism and Christianity–all celebrate deeply spiritual holidays through Ramadan, Passover and Easter.

Our hope is that whether you recognize one of these holy periods or not, we as Americans can take the time to reach out and talk with each other about our giving. We can be open to organizations and service delivery methods outside of our comfort zones because they work, and because they do so in a way that reflects our shared wishes and prayers for a more united and cared-for country. We invite you to challenge your implicit biases and get uncomfortable while opening your eyes and heart to the love of mankind, especially when it doesn’t look or sound like you.

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Dilnaz Waraich is the President of the WF Fund, a national leader in uplifting marginalized communities in education, human services, and religious pluralism. Read more about her.

Lauren Janus is COO and Director at Phīla Engaged Giving. Read more about her.

Year-End Giving for Uncertain Times

By Lauren Janus

“I Voted” stickers. Image by Element 5

At times, this fall seems almost normal. The leaves are turning, plastic ghosts and spiders are everywhere, and pumpkin spice again abounds. This season always arrives with a crisp breeze of anticipation as those of us who work with donors and nonprofits approach November and December, when the vast majority of charitable giving occurs as part of the annual year-end giving tradition.

But of course, this year isn’t normal. Our country faces one of the most divisive and potentially destabilizing presidential elections in generations. In a few short days, we’ll face the outcome of this election and get a taste of how our country will move through the decision–whatever that decision is. 

As we as a country charge headlong, hat pulled over ears, raincoat belted, into the political process, we at Phīla are increasingly asked—by clients, colleagues, and family members—how one’s giving should change, or not change, to meet these uncertain, deeply unequal, and often frightening times. Here are my answers:

Start by taking honest stock of your 2024 giving using an equity lens. The inequality in this country, and around the world, is deeply rooted in systems that favor certain groups and economic systems. Philanthropy is both a consequence of this inequality (people with more have more to give away) and one lever for righting the ship or creating more equal outcomes. But just like where you spend your money matters, where you give it matters as well.

The majority of our client engagements start with a clear-eyed, numbers-don’t-lie look at where the donor has been giving. It’s always an illuminating exercise. Inevitably, a donor will be shocked to know they are giving so much to certain issues and types of organizations (often large, well-known nonprofits) and so little to others.

To do this exercise yourself, set aside an hour or so to go through your gifts for the year. If you have a Donor Advised Fund, that’s an easy place to start. You can also go through your bank statements, email receipts or ask a partner or spouse what they remember. Don’t forget any political gifts and other non tax-exempt gifts you made! In our eyes, those absolutely count. 

As you build your list of organizations and gift sizes, start to look for patterns and gaps. Are you giving substantial, regular gifts to large institutions like private universities and hospitals by default? What about organizations or political candidates your friends (i.e. people like you) recommended? If so, pause and take a moment to think about how these practices could reinforce the preponderance of gatekeeping in fundraising, thereby reinforcing inequitable funding patterns between White-led and BIPOC-led organizations.

Plan your year-end gifts and other philanthropic activities. If you’re like us, the political appeals have been coming fast and furiously to your inbox and text message screen. In a few short weeks, those appeals will be matched by any and every nonprofit you’ve ever given to asking for a year-end gift. When you take a moment to plan your giving, you stand less of a chance of reactively giving more to organizations that have the budget to send you gorgeous appeals. Take time now to think about any gaps revealed by your stock-taking in step one. Are there grassroots groups in your community you might support this year? Are there people outside of your social circle you could ask for lesser-known groups doing important work? Put them on your list. 

At the same time, think more broadly about your year-end philanthropic activities. Are you hoping to get your charitable estate plan updated or address an inflection point in the life of your family foundation? Start thinking about those tasks now and reach out to a philanthropic advisor like Phīla, as well as any legal, financial or other professional advisor. We all get busy this time of year.

Set some goals for 2025. As you begin your holiday and other year-end activities, be sure to set aside some time to map out your giving for the new year. Now’s the time to sit down with family and communicate your giving goals for next year. Do you want to give more to community-based organizations (even if the community isn’t your own)? Can you afford to increase your giving budget for next year? 

Talk with your spouse, children or others important to you about the gifts you know you’ll make and those that may feel unfamiliar but that you want to consider. Now’s also a good time to talk about where you want to show up in 2025 as a volunteer or even simply a dependable advocate.

Importantly, just because the election is over, now is not the time to stop making political gifts. Again and again we hear about democracy-building groups who fear the "post election drop-off" in funding. Many will have to lay off staff in January and some will close altogether. In fact, it's the time between elections when the groundwork is laid for success at the ballot box. Consider signing the "Election Day to Every Day Pledge" and continue to give (or even increase your giving) to organizations doing the hard work of registering voters, challenging unfair election laws and mobilizing communities for the next election.

These next few weeks will be nothing if not uncertain in our country. But as individual citizens, we can support our democracy and our communities by voting, by helping others to vote, and by being thoughtful, intentional and generous in our giving now and into the New Year.

Rethinking Political Giving: A Holistic Approach to Philanthropy

By Stephanie Ellis-Smith

Demonstrators at a protest waving American flags.

For years, the IRS's tax regulations have inadvertently compartmentalized charitable giving and political contributions in many donors' minds. At Phīla, we challenge this separation, advocating for a more integrated approach to social impact across various giving avenues, including direct donations, foundation grants, and even investment strategies. Our focus is to help individuals align their wealth deployment with their values, extending to political giving as well.

In January, when we surveyed our readers on philanthropic giving trends, engagement in democracy emerged as a top priority. Respondents expressed a strong desire for access to expertise and learning opportunities for effectively allocating their political giving in this very consequential election year. Responding to this demand, Janell Turner and Sofia Michelakis organized Political Giving for Progressive Donors, a webinar and companion handbook offering a comprehensive overview of the political giving landscape and strategies for a donor to make a difference. As I watched the webinar live, I was struck by just how much knowledge is out there but inaccessible to the average donor. With deep thanks to our panel of experts (Alexandra Acker-Lyons, Dionne Foster, Kevin Geiger, and Jamie Van Horne Robinson), the information is out there. Here’s a very high-level overview of what you can expect.

The webinar begins with practical advice on setting a budget for political giving and strategically allocating funds. Panelists address common client queries such as integrating political giving with philanthropic goals, determining budgetary allocations, and navigating the choice between local and national contributions. Additionally, they shed light on the nuances of utilizing different giving structures, including c3, c4, or PAC dollars.

Moving forward, they delve into the impact of investing in candidate races and supporting key local ballot initiatives and election infrastructure projects. Dispelling doubts about the efficacy of individual contributions, the panelists assure that every donation counts and share insights on maximizing impact.

Further, we highlighted top considerations for donors, including core candidates, critical initiatives, and organizations deserving of support in the current election cycle. Addressing questions about donation limits and defining major gifts, we provided clarity to empower donors in their decision-making process.

As we look beyond the 2024 election, our panelists provide valuable advice for preparing for the future of democracy, emphasizing the need for long-term investments to fortify our democratic systems for generations to come. While they may have only scratched the surface, understanding the ongoing reform efforts and strategic focus areas is crucial for shaping a resilient democracy.

At Phīla, we advocate for a holistic approach to philanthropy, recognizing that political engagement is integral to effecting systemic change. We're committed to breaking down silos and fostering a more integrated approach to philanthropy and political engagement. By aligning values with actions, we can collectively drive positive change and safeguard the principles of democracy for all. Thank you for joining us in redefining the boundaries of philanthropy and shaping a brighter future for generations to come.

How Donors Can Develop a Growth Mindset

By Sofia Michelakis

Over the holidays, I was having lunch with two friends who are resource mobilizers for large scale social change efforts. They both shared poignant stories of recent conversations they've had with high capacity donors who are decreasing their giving relative to previous years. Their reasons were some you might expect– economic uncertainty, busy lives etc.--and some you might not– fear of public criticism and wondering if it's the right time to go big.

This got me thinking about my experiences working with some of the most generous people in the world over the past decade. One question I keep asking is what is stopping extremely wealthy people from making 9-, 10- and even 11-figure gifts now and early in the New Year? Especially knowing that, in many cases, gifts of this size are paid out in multi-year installments and allow social sector leaders the freedom to dream big and execute large scale solutions.

A scarcity mindset affects even those with the most resources and advantage.

By mindset, I mean a set of attitudes, a worldview or philosophy of life. Mindsets are important because our beliefs and attitudes affect everything we do in life. I propose that the following five shifts in mindset for individual donors would go a long way toward increasing their confidence to make large scale gifts, even during economically challenging times. Whether you're an individual of great means, or someone who works closely with donors, I hope that these suggestions and examples will be useful.

1. Recognize that social problems compound too

I can't tell you how many philanthropists I've met who have really struggled with when to start giving. They often wonder if it might be better to wait to give in order to increase their wealth over time and have more to give away. While the desire to have more to give is laudable, I've often counseled that it is equally important to examine the societal costs of waiting.

Social problems are compounding, often at a faster rate than your wealth is compounding. Take climate change, for example. We have a very narrow window in which to act collectively as a global society to combat climate change. Philanthropy won't be the only solution, but it can be a critical accelerant. We need a mindset of acting with greater urgency in philanthropy. In fact, the very survival of the planet depends on it.

2. You do have enough

When I talk to philanthropists who just a year ago were conscious that their wealth accumulation is outpacing the speed of their giving, I am struck that many of them over the last 6-9 months now believe that the stock market has eliminated that challenge. This belief leads some people to conclude that they should slow down the pace and amount of their giving.

It is human nature for all of us—not just the very wealthy—to take a very short-term approach to comparing what we have now with what we used to have. I get my retirement fund quarterlies, and what does it reveal? It details my current balance compared to last quarter and last year at the same time. That's it.

Philanthropists should have a longer-term horizon and look at their wealth accumulation over a decade. Over this period, a lot of ultrawealthy people have seen their wealth double and even triple in size. Taking a more holistic and longer look back, recognizing that, "gee, overall, I'm way up" may be quite illuminating and increase confidence in being more generous.

Most billionaires give well below their potential and can afford to add a zero (or two!) to their annual giving.* I love it when newer philanthropists set an annual budget for their giving and then materially increase that amount every year as they gain experience and confidence with larger gifts.

*An exception is people whose wealth is entirely tied up in a private company, limiting their capacity to give until they have a liquidation event.

3. You are not too busy

One of the most common areas of scarcity thinking is in relation to time. I can relate. When someone asks me, "how are you?" the first thought in my head—especially during year-end craziness—used to be "busy." We need to reframe how we look at the competing demands on our time. Feeling too busy is a state of mind. It's more how we perceive our lengthy to-do list and we can become overwhelmed. 

There are approaches that we use when we have long to-do lists in our jobs and personal lives. We prioritize, and we get help.

The unconscious decision many donors make when they feel overwhelmed and busy is to de-prioritize their giving when they could be asking for help and delegating more. Here are three strategies for busting the "too busy" mindset:

• Outsource your giving to a reputable collaborative or give to a collective fund. 

• Hire a competent professional philanthropic advisor to help you articulate your giving criteria and develop customized recommendations that will enable you to give with confidence. 

• If you're the DIY type, use give lists and/or grantees of your local community foundation as a short-cut to identify great organizations to fund.  

In short, don't let being too busy be a barrier to joyful giving. Develop a mindset that you have lots of choices for how to attack the busy-ness of your life!

4. Trust goes both ways; give in ways that earn trust

There is sometimes a misguided belief that people who choose nonprofit work have independent means (therefore needing less pay) and superhuman sources of energy (therefore needing less support and time off). We need to recognize social sector workers are essential workers and we can't keep taking them for granted. Less than 1% of philanthropy goes to programs directly benefiting women and girls of color.  Furthermore, organizations led by women of color receive smaller grants on average and are more likely to receive restricted funding. Is it any surprise that these leaders are burnt out?

It's not just donors who need to learn to trust nonprofits. Decades and centuries of systems of oppression have led to nonprofits and communities, quite understandably, not trusting philanthropists.

A thought exercise that would be helpful to donors is to consider "how does my giving earn trust from my grantees?"

In particular, philanthropy can support women of color leaders better. A significant way to do that is through bold, unrestricted gifts so that they can focus more time on the mission and serving communities, and less time on fundraising and reporting. You will likely find that it leads to greater social impact too. Naina Batra, Jeroo Billimoria, Morgan Dixon, Cheryl Dorsey, Bridgitt Antoinette Evans, Vanessa Garrison, Robin Wall Kimmerer, Solome Lemma, Sudha Nandagopal, and Ai-jen Poo are just a few of the brilliant women of color I admire and who are leading complex, essential work for the world.

MacKenzie Scott attracts a lot of attention for the breadth and size of gifts she makes without strings attached. But she is by no means alone. Some of the other philanthropists I respect for giving at scale and developing trusted partnerships with social sector leaders: Tegan and Brian Acton, Arnold Ventures, Ron Conway, Civic Ventures, Echidna Giving, Chuck Feeney, Gatsby Charitable Foundation, Eileen and Paul Growald, George Kaiser, Libra Foundation, Tricia and Jeff Raikes, Rohini and Nandan Nilekani, Azim Premji, Liz Simons and Mark Heising-Simons, SeaChange Foundation, Stacy Schusterman, and Cari Tuna. These donors use a range of giving vehicles and approaches, from organizations they have founded, to donor collaboratives, to direct giving, and funding advocacy and policy change.

5. An attitude of abundance and generosity will increase your wealth and happiness

Buddhists teach that having a giving heart creates the karmic conditions for future wealth. The inverse is also true—miserliness creates the karma for future poverty. Similar beliefs are reflected in many other world religions as well. Common sense agrees. We've all witnessed in our lives people who have very little, but nonetheless are open and generous in sharing with those who have even less than themselves. These people exude joyfulness and abundance. 

If you don't believe world religions or common sense, there is scientific evidence to back up this theory as well. Researchers at Notre Dame reported that on average generous people make more money in the long run than people who are selfish. There is also evidence connecting generosity with better overall health and greater happiness. Giving generously to increase the happiness of others has huge benefits for the givers themselves.

Embracing a growth mindset and developing new attitudes can help every donor break through the inhibiting, tight feelings that arise from succumbing to a scarcity mindset. Lean into your sense of abundance this year. Your families and your communities will benefit, and I guarantee that you will personally experience more happiness as well.

Edited from an article originally posted on LinkedIn December 12, 2022

Sofia Michelakis is a connector, guide, and experienced leader who helps people turn their vision for social change into action. As former lead strategist and deputy director overseeing the Giving Pledge and past board chair of Social Venture Partners International, she is a trusted bridge between philanthropists, their teams, and nonprofit leaders. Sofia has partnered with influential global visionaries on giving strategy and family engagement, developed engaging curricula and winning models for social impact, and frequently acts as moderator for in person and virtual executive convenings.

Loving and Letting Go

Image by Emma Fabbri

By Stephanie Ellis-Smith and Janell Turner

Love is in the air! Valentine’s Day approaches and we are preparing to open our wallets for roses, candies, and nights out (masked or maybe delivery). While that’s all fine, we’d like to use the time to talk about a different kind of love. The ancient Greeks had at least eight or nine words for love. The most well known are eros (romantic love), agape (the highest form of love that is unconditional and spiritual) and philos or philia (brotherly love or friendship). 

Philia is the love between equals who share goodwill toward each other, the root of the word philanthropy. Ancient Greeks defined this deep feeling of friendship to include loyalty, the sharing of emotions (both good and bad), and a sense of shared sacrifice. Philia is a virtuous, intimate companionship that in its highest and best form, can describe philanthropy. It’s that aspirational sentiment that informs the name of our boutique advisory and the premise by which we operate. Though our work is only with donors, we are extremely conscious of the roles and balance between the givers and the beneficiaries they wish to serve. But philanthropy is in the midst of a period of profound change. Post 2020, managing that balance is no longer enough. We saw that the basic systems of governance, health, and justice that we assumed would support us and nurture us instead failed us. Givers and philanthropic professionals alike took hard assessments of themselves and decided that to do our part in repairing these systems, a bigger, greater love was needed.

Perhaps instead of philia, it is agape, the selfless, unconditional love for the entire world: neighbors, strangers, everybody is a better expression of our hopes/desires for philanthropy. Existing on the spiritual plane, it is the highest form of love – and the one in shortest supply in today’s society. Empathy fuels agape; it is given freely without any desires, expectations, or judgment. 

We’ve begun to see this kind of self-sacrificing love take root in the world of philanthropy, particularly within the realm of donor-beneficiary relationships. Donors are beginning to seek authentic relationships with beneficiaries where open, honest, and transparent conversations can take place. They are letting go of some of the limiting norms and narratives regarding performance, outcomes, reciprocity, and recognition that have defined traditional philanthropy. They are more focused on and curious about systemic flaws in society rather than their manifestations and are willing to experiment with new ways of giving. Most importantly, they are beginning to acknowledge their inherent power as givers and make room for others at the decision-making table.  

This agape framework defines our hope for philanthropy in the future and where we at Phīla believe philanthropy is headed. In our client conversations, we’re diving deeper into the “why” and “for whom” of their giving with less emphasis on the “how” and “what” as leading strategies. 

Put into practice, this approach to philanthropy may be expressed through the six Trust-based Philanthropy principles aimed at advancing equity, shifting power, and building mutually accountable relationships:

• Offer multi-year, unrestricted funding

• Do your homework first

• Be transparent and responsive with your beneficiaries

• Streamline your required paperwork

• Solicit and accept feedback on your practices

• Offer support beyond the check

We acknowledge that it’s not easy making these shifts, but the times are asking us to reevaluate past practices with the hope that we will forge a new path forward. Will it be a success? No one knows, but we do know that (quoting The Great One, Wayne Gretzsky) “you miss one hundred percent of the shots you don’t take”. Taking a shot might mean getting out of your comfort zone and plunging into the unknown where the highest expression of love and vulnerability intersect. It might mean taking risks and accepting whatever losses that come with letting go. But what is there really to lose? We challenge you to confront your assumptions about your role as a giver and incorporate the spirit of agape into your philanthropic practice. If you would like to learn more or want support in incorporating these principles in your giving, let’s talk. Happy Valentine’s Day!

The Science Of Compassion

Image by Gerd Altmann

By Stephanie Ellis-Smith

Given that we’re approaching year-end and many folks will be thinking about making their final year-end gifts to charities, I thought it would be a good time to re-up this post from 2019 about compassion. It just lands differently after the events of 2020. We have experienced so much collective trauma these past two years that I felt we ought to be reminded of the fundamentals and the root of philanthropy--love of humanity. Please have a read and let me know what you think. 

***
Last week I went to a charity luncheon that raises money to house Seattle’s homeless. After client testimonials and The Ask, we were introduced to the keynote speaker, Shankar Vedantam, the host of NPR’s Hidden Brain. Apropos of why we were there, he spoke to us about compassion and how it is accessed and processed (or not) in our brains.

As someone who for over 20 years has relied upon and tapped into the compassion of many in order to do my part in making our society more livable and equitable, I was captivated by his words. I know that when we help others, we experience greater happiness than if we had done something for ourselves. Now science has weighed in and has offered proof that it’s true. 

One well-cited study shows this clearly. Two groups were given varying sums of money. One group was told it must give the money away, whereas the other group was instructed to spend it on themselves. Consistently and across variables, persons in the first group had greater neural activity in key areas of the brain and were seen as happier than their self-indulgent counterparts. And this neural activity was present even in the mere anticipation of giving money away to help others. In other words, we are hardwired to do good. So why don’t we do it all the time?

Vedantam explained that just as there are predictable triggers in our brain for generosity and happiness, there are barriers to them as well. He shared three with us, and I noticed that the first two address an issue that we talk about all the time in philanthropy: the quest for impact. 

The first barrier is distance. It’s much easier to help someone right in front of us than someone who is miles away. Responding to the immediacy of someone’s needs is a knee-jerk response for most of us. However, when someone far away is in crisis, the time it takes to learn of the problem and then to get your relief delivered, causes many of us to lose interest or become more apathetic than we’d like to be. The reason, Vedantam says, is because we don’t get that immediate rush of happiness that comes from having done well by someone. Helping close by is evolutionary. 

The second barrier is scale. For many of us, when confronted with massive problems that we can’t readily solve, we tend to shut down or simply just ignore it--think about homelessness, climate change, etc. You are not alone if the sheer scope and magnitude of the world’s most intractable problems leave you feeling exhausted. It turns out that we are genetically and neurologically predisposed to being overwhelmed in these situations. When we don’t feel we are having, or can have, a positive impact on a negative situation, we are less inclined to help.

The final barrier is what’s called “the bootstrap narrative.” We have all heard it said that if a person is in trouble, they should “pull themselves up by their bootstraps” and fix their own problems. It’s a widely held notion, but research debunks the idea that the first person who should help someone in crisis is that very same person. Vedantam cited a famous study called the Minnesota Starvation Experiment, which showed that a person’s mind becomes entirely captured by the thing they lack (especially if that thing is essential, like food, housing, or even a drug). In fact, they can think of little else. Scientists have learned that scarcity captures the mind and the afflicted are in fact the least able to solve their own problems. They lose the ability to think rationally and instead do the things that may manage the scarcity today, but do nothing to address the root cause of their problems. Watching people make what we can clearly see to be “poor choices'' makes our compassion for their plight go out the window. But our expectations are unreasonable. Bootstrapping while in distress simply doesn’t work.

So what can we do to override or outwit our brain’s wiring so that we can be compassionate all the time? Well, apparently it takes very little—and you don’t have to be a martyr either. We just need to remember that: 

1. Compassion is contagious. When we are working at something with others or if we even see another person toiling away at something good, we tend to be more eager to join in and to help.

2. Break it down. Instead of thinking you must rescue all stray animals in world, find one. When we can more readily see our impact by breaking off a small piece of the problem and we “solve it,” we’re more apt to do it again, and so will others. (See point #1.)

3. Compassion lives everywhere. There are many ways to exhibit compassion, so don’t be fooled into thinking that it’s all about money. Making a call to check in on a grandparent or mentoring a teen, goes a long way toward making a difference in the world. And when we do it, we give something more valuable than money—time.

Being compassionate is a part of what makes us human. As we get strategic with our philanthropy, let us not complicate what it’s all about in the end.

The Gift of Radical Empathy

By Aparna Rae

As a DEI consultant in 2020, I had a front row seat watching leaders experience transformation and drive race equity in their organization. Most for the first time. Maybe that was you? Moved by the seismic shifts brought on by the pandemic, the murders of George Floyd and other African Americans, and the resurgence of the Black Lives Matter movement. Perhaps the divisive nature of the 2020 election forced you to take a pause and reflect: What should I say? Do I share my own perspectives? What are other organizations and individuals doing? What do I do? How can I support my staff, colleagues and community? No matter who you are or your life’s circumstances, 2020 forced us all to face the gross systemic inequities in our society.  

As we begin a new year, we have the opportunity to put our awareness into action. Awareness that we continue to be in a global pandemic that’s far from over, that divisive discourse in US politics prevailed through the holidays, that more households plunge deeper into poverty as tens of millions remain under/unemployed. Alongside this, an awareness of our privilege - the ability to work from home, safely travel (if needed), income and wealth that create stability, and most importantly, being able to drive change in our homes, at work, and in our communities. 

Radical empathy, as a practice, offers each one of us an opportunity to take action - at no fiscal cost. “Radical” in this instance doesn’t mean extreme, it’s intended to be the opposite of “conventional” or “status-quo”. Why? Because conventional wisdom is just not enough. Our siloed, oven segregated lives all but limit exposure to people whose lives and identities are different than ours and therefore our ability to step into someone else’s shoes is also limited. Don’t believe me? US cities continue to be deeply segregated, 3 out of 4 white people don’t have any non-white friends (Washington Post), and despite evidence of diverse team making better decisions (HBR), within philanthropy, 92 percent of foundation presidents and 83 percent of full-time staff members are white (Bridgespan). 

How do we push past personal biases and systemic barriers to take action? I’m proposing three ways to practice radical empathy today. Your empathy-muscle grows stronger the more you use it, the more you use it at work, the greater the impact of your giving.

1. Allow yourself to be vulnerable. It’s time to take off your armor. Dr. Brene Brown’s decades long research tells us that vulnerability is the ability to show people you’re not perfect, you make mistakes, and you don’t have all the answers. In other words, it’s showing people that you’re human. Leaders who are vulnerable open the door to innovation, inclusion and growth. 

2. Know the difference between impact and intention. Our privilege can often shield us from understanding the impact of our actions. When it comes to greater equity, belonging and justice, our intention is always to do better but the impact may not always be positive.  A focus on impact brings greater accountability to our actions. 

3. Open yourself to the experiences of others. Our race, gender, socio-economics, geography, all impact our experience in the world - one that may not be shared by others. In one of her many talks, Carla Harris, Vice Chairman of Wealth Management at Morgan Stanley, recounts an experience of being mistaken as a steward while unboarding her private jet. As a black woman at the very peak of her industry, she still faces microaggressions. Even when it diverges from your experiences, believe those whose identity differs from your own - black, indigenous and people of color, women, individuals with visible or invisible disabilities, the LGBTQIA community and other groups experiencing oppression.

The moment that we gain empathy, of a universal kind, then something a little magical happens...Ah, you see — with empathy, we no longer see life as a battle. And therefore, our fellows, peers, colleagues are no longer merely our adversaries, enemies, opponents. What are they? They are just us, wearing a different face.

— Umair Haque 

The practice of radical empathy is a daily habit, an essential life skill — and an invitation to live life in alignment with your greatest values.  

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Aparna is the Founder and Principal at Moving Beyond - a boutique data -driven and impact focused DEI practice. 

The Joy of Convening in Houston: Reflections on Collective Giving

A few weeks ago my friend Laura Midgley and I went to Houston for the Community Investment Network (CIN) conference, which celebrated its 15th anniversary by reflecting on its legacy of building up communities through investing their time, talent, treasure, and testimony (using our collective voice for change). CIN is national network of giving circles impacting communities of color. It connects and strengthens African-Americans and other donors of color by leveraging their collective resources to create the change THEY wish to see. The majority of their members are African-American from the Southeast.

While I had some familiarity with giving circles in general, I was new to this organization and was introduced to it by Laura, who has been a leader in the collective giving movement in her roles as a long-time trustee of the Washington Women’s Foundation and as a board member and co-founder of Catalist, another national network of collective giving organizations.

Laura went to Houston with the specific mission to further Catalist's relationship with CIN.  Five networks in collective giving— The Latino Community Foundation, Amplifier (giving circles based on Jewish values), the Asian Women’s Giving Circle, Catalist, and CIN—have collaborated on a co-design project aimed at accelerating the size and impact of the giving circle sector on community transformation. (Read about the co-design work funded by the Bill and Melinda Gates Foundation.) The missions of these five networks of collective giving groups are closely aligned, so rather than compete, they collaborate. We all use conferences to inspire affiliates to dig deeper into this work and to prepare the leaders to go home to their communities feeling elevated. Sometimes this work can be wonky but we came home from Houston reminded it must always be joyful. 

I went to Houston strictly to listen, learn, and observe. Though I am a member of the Washington Women’s Foundation, I don’t have much first-hand experience with giving circles, but have always been impressed with their personal engagement in their communities and the members’ commitment to learning and each other. My work as a philanthropic advisor has been limited to high-net-worth individuals and families who are looking to become more strategic and dedicated in their charitable giving. Working with family groups is in some ways similar to a giving circle, but there is something uniquely special about a group of unrelated people voluntarily pooling their money to make investments in their local community. 

We anticipated meeting new colleagues and reconnecting with fellow philanthropists who give through collective giving grantmaking, pooling funds for community impact. But a genuinely worthwhile conference should do more than provide a few new tools and a pile of business cards.  Our goals for traveling to Houston varied, but we both were delighted that our trip to Houston yielded an unexpected joyfulness that rejuvenated us.

What struck us the most was the level of joy and camaraderie we observed, not just within each giving circle, but among them as well. Participants gathered to share stories and best practices and to learn. Their dedication to the work and communing with a cohort of like-minded people produced a powerful aura of goodwill that was hard to ignore.

I know for Laura, the joy came from stepping back from the work and taking stock of why and how we show up for the communities to which we belong and care about in the first place. In the opening session, Linetta Gilbert, formerly of the Ford Foundation and a founding visionary of CIN, spoke meaningfully about how to blend institutional philanthropy with individual philanthropy. And of course, this is exactly what collective giving groups do – inform the individual through group experience and then elevate the impact through collective giving. Ms. Gilbert spoke about the value of a listening tour and the power of starting any foray into philanthropy by asking “Who is absent?” How can we as philanthropists elevate community by seeking out the voices of those left out of the traditional philanthropic power dynamic?  

Ms. Gilbert and her co-presenter Darryll Lester, CIN’s founder, said of the partnership between funders and grantees: "Spend time with each other to get to know one another before doing business". Too often institutions begin the relationship with a transaction – the grant or the donation. Starting that way sets the tone for it to become forever framed and dominated by that transaction. At The Ford Foundation and now in her recent work, Ms. Gilbert invests in relationships first. Doing so allows us to understand the landscape behind the issue and to better allocate our resources and energy. It became clear to us that it is only from this level of engagement that we can begin to envision how all American communities can grow and thrive equitably.

 As for me, I found a deep sense of joy simply from the conference’s theme: “We are Philanthropists”. It was empowering for me to be among African-Americans who proudly claim the mantle. While many debate whether the sector is hopelessly corrupt and ineffective, CIN’s giving circles harness all that is right with philanthropy and brings it into the Black community on their own terms. Circles represented at the conference gave to individuals (from Black men and boys mentorship groups to struggling entrepreneurs or artists) and to traditional organizations. They also came to learn about innovative programs going on nationally that they could bring back to their circles to learn from or adapt for their own community.

 The learning components tapped neatly into the spirit of the conference: community-based and Black-centered. Speakers who brought their expertise to CIN included land trust advocates from the South speaking about building land sovereignty for displaced black and indigenous people, representatives from Black community foundations talking about how and where to invest a circle’s funds, and community-owned grocery store investors on how to eliminate food deserts. I left inspired not just by the work, but by the communion of the network.

CIN’s giving circles, especially those in CIN, embody the best tenets of philanthropy. People pooling resources, sharing knowledge, and offering a hand up to those who need it brings out the best in all of us. I wish this blog could share the warmth of the hugs we received or the sounds of laughter we heard during those two days. Such a jolt of energy renewed my spirit and my commitment to helping people find joy in their giving through deep engagement and understanding. 

I hope this blog piqued your curiosity about giving circles. Feel free to contact me to learn how you can join an established circle or start one of your own. And check out Catalist’s conference PowerUP! The Spark That Ignites Change, which will be held in Seattle February 23-25, 2020. Laura Midgley is the co-chair of this conference and I will be presenting on women of color philanthropists.

The Science of Compassion

Last week I went to Plymouth Housing’s Luncheon for Hope, which raises money to house Seattle’s homeless. It was a packed house of 1600 compassionate people who collectively raised $1.3M in a mere 90 minutes for their mission. After client testimonials and The Ask, we were introduced to the keynote speaker, Shankar Vedantam,the host of NPR’s Hidden Brain. Apropos of why we were there, he spoke to us about compassion and how it is accessed and processed (or not) in our brains.

 As someone who for over 20 years has relied upon and tapped into the compassion of many in order to do my part in making our society more livable and equitable, I was captivated by his words. I know that when we help others, we experience a greater happiness than if we had done something for ourselves. Now science has weighed in and has offered proof that it’s true. 

 One well-cited study shows this clearly. Two groups were given varying sums of money. One group was told it must give the money away, whereas the other group was instructed to spend it on themselves. Consistently and across variables, persons in the first group had greater neural activity in key areas of the brain and were seen as happier than their self-indulgent counterparts. And this neural activity was present even in the mere anticipation of giving money away to help others. In other words, we are hard wired to do good. So why don’t we do it all the time?

 Vedantam explained that just as there are predictable triggers in our brain for generosity and happiness, there are barriers to them as well. He shared three with us, and I noticed that the first two address an issue that we talk about all the time in philanthropy: the quest for impact. 

The first barrier is distance. It’s much easier to help someone right in front of us than someone who is miles away. Responding to the immediacy of someone’s needs is a knee-jerk response for most of us. However, when someone far away is in crisis, the time it takes to learn of the problem and then to get your relief delivered, causes many of us to lose interest or become more apathetic than we’d like to be. The reason, Vedantam says, is because we don’t get that immediate rush of happiness that comes from having done well by someone. Helping close by is evolutionary.  

The second barrier is scale. For many of us, when confronted with massive problems that we can’t readily solve, we tend to shut down or simply just ignore it--think about homelessness, climate change, etc. You are not alone if the sheer scope and magnitude of the world’s most intractable problems leave you feeling exhausted. It turns out that we are genetically and neurologically predisposed to being overwhelmed in these situations. When we don’t feel we are having, or can have, an positive impact on a negative situation, we are less inclined to help.

 The final barrier is what’s called “the bootstrap narrative.” We have all heard it said that if a person is in trouble, they should “pull themselves up by their bootstraps” and fix their own problems. It’s a widely held notion, but research debunks the idea that the first person who should help someone in crisis is that very same person. Vedantam cited a famous study called the Minnesota Starvation Experiment, which showed that a person’s mind becomes entirely captured by the thing they lack (especially if that thing is essential, like food, housing, or even a drug). In fact, they can think of little else. Scientists have learned that scarcity captures the mind and the afflicted are in fact the least ableto solve their own problems. They lose the ability to think rationally and instead do the things that may manage the scarcity today, but do nothing to address the root cause of their problems. Watching people make what we can clearly see to be “poor choices” makes our compassion for their plight go out the window. But our expectations are unreasonable. Boot strapping while in distress simply doesn’t work.

 So what can we do to override or outwit our brain’s wiring so that we can be compassionate all the time? Well, apparently it takes very little—and you don’t have to be a martyr either. We just need to remember that: 

1. Compassion is contagious. When we are working at something with others or if we even see another person toiling away at something good, we tend to be more eager to join in and to help. 

2. Break it down. Instead of thinking you must rescue all stray animals in world, find one. When we can more readily see our impact by breaking off a small piece of the problem and we “solve it,” we’re more apt to do it again, and so will others. (See point #1.)

3. Compassion lives everywhere. There are many ways to exhibit compassion, so don’t be fooled into thinking that it’s all about money. Making a call to check in on a grandparent or mentoring a teen, goes a long way toward making a difference in the world. And when we do it, we give something more valuable than money—time.

 Being compassionate is a part of what makes us human. As we get strategic with our philanthropy, let us not complicate what it’s all about in the end.

Giving Profile: Disaster Philanthropy

Here in the Pacific Northwest, we are known for our rainy winters and springs. The persistent dampness and temperate climate are what give Washington State, where I live, its name, The Evergreen State. But in the past two years, I’ve witnessed the emergence of a new time of year, wildfire season. 

 Epic drought for the past several years has left the entire west coast parched and on the verge of ignition. Of all the horrible fires last summer, nothing was as devasting to human life as the Camp Fire which killed at least 85 people. The 2018 wildfire season was the deadliest on record. 

 Though wildfires are prominent in the West, the summer months are also known for hurricanes in the South and tornadoes in the Midwest. But not all disasters are due to weather. They also include mass shootings, the refugee crisis and other man-made atrocities. All are horrible to witness and tug at our heartstrings. Calls for action are urgent and our instinct is to lend a hand. We want to help victims. We want to support first responders. So, we give.

 In May, I attended the Advisors in Philanthropy Conference in Washington, D.C. where I went to a plenary session on giving in the wake of disasters, and it was an eye-opening experience. Robert Ottenhoff, CEO of Center for Disaster Philanthropy (CDP), gave an impassioned presentation to the advisors in the audience about what is truly helpful in natural and man-made disasters. He told of how emergency responders classify emergencies as Sudden Onset (Hurricane Harvey, Pulse Shooting), Slow Onset (Ethiopian famine), or Complex (Syrian refugee or Southern border crisis), and how the nature of response is different for each. Developing intentionality around funding disasters is getting greater attention after a seemingly incessant spate of epic events due to the climate crisis and gun violence.

He spoke about how funders are (re)considering their role in preparation for and in response to disasters, what we have learned from some of the recent, large events, and finally, how we can best respond in ways that are proven to be beneficial, both in the short- and long-term. This month’s post will share useful tips and approaches for donors about how best to incorporate disaster giving in their charitable portfolio.

 He began with the numbers of how we currently give. In the US, disaster giving is quick off the mark and reactive:

• 1-4 weeks following a disaster: Over a third of private giving is complete 

• 1-2 months following a disaster: Two-thirds of private giving is complete 

• After 6 months: All giving stops, yet full recovery often takes YEARS.

 About a third of all US households gave to disasters giving an average of $81, but the vast majority of that giving is in the immediate days of the tragedy. What we don’t often hear in the media is the still dire needs of a community once the tragedy has moved out of the news cycle. Consider this from CDP:

 When disaster drives people from their community, it can result in: 

• Increased taxes

• Loss of school revenue and teachers

• Greater public debt shared by fewer taxpayers

• Increased utility costs

• Homelessness

• Loss of workforce and business development opportunities 

And for those who stay, they often face:

• Mental health issues (e.g., loss of hope, increased despair, PTSD, etc.)

• Increased suicides, divorce, drug and alcohol abuse, early death 

• Lack of community trust 

 As these events become more regular, it’s crucial that individual donors, and especially corporations and foundations, be more thoughtful and strategic in their giving. But the challenge in doing so is obvious. When disaster hits, the flurry of urgent appeals on social and traditional media can be overwhelming, leading many to donating the wrong things to the wrong non-profits at the wrong time. One striking anecdote that Mr. Ottenhoff shared was the number of coats and jackets sent to Hurricane Harvey victims (in Texas), which not only could they not use, but they also had to spend precious resources finding a way to store, then donating them elsewhere. 

 The CDP is a specialist in the area and they play an important role in helping funders go from being reactive to strategic. He concluded by reminding us that all funders are disaster funders and that catastrophic events tend to fall outside of normal grantmaking guidelines for the average donor. With that said, the aftermath of emergencies extends far and wide affecting housing, vulnerable populations (low income, seniors, people of color), education, health, and more. It is crucial that all donors consider the full arc of disasters and the full scope of their needs for an effective recovery.

 While it is common to think of them as discrete events with fixed beginnings and ends, emergency first responders generally think of disasters in "lifecycles" that happen before, during, and after a devastating event: mitigation, preparedness, response, and recovery. Understanding what is needed in each phase can help the donor decide where they can provide the greatest need by the strategic deployment of their time and treasure. 

 In summary, for disaster philanthropy to be effective, follow these rules: Give cash. Fund local. Fund long-term. Fund medium-to long-term recovery efforts. Learn from others. 

Additional Resources:

Basic Tips for Disaster Giving, Center for Disaster Philanthropy

Tips for Giving in Times of Crisis, Charity Navigator

The Disaster Recovery Network, Global Giving

A Life-Changing Journey of Faith and Learning

by Selene Poulsen

During my time at the University of Washington, I wanted to expand my knowledge in new areas. Looking through the internships on my university’s job board, I saw the Phila Engaged Giving philanthropy internship posting and felt compelled to apply. I was concerned that being new to the philanthropy industry would limit my ability to contribute. Nevertheless, I soon found that my business skills and passion for community engagement complimented the job’s tasks. I felt privileged to have the opportunity and began absorbing as much as I could about consulting and philanthropy.

After a few weeks of working closely with my mentor, Stephanie Ellis-Smith, I saw numerous similarities between philanthropy and my life experiences. I reflected on my work in communities, connections with non-profit organizations, jobs I’ve had in the past, and my world travels. One part of my role with Phila has been to connect current events with philanthropy for content in our e-newsletter, Insights into the World of Philanthropy.  With Ramadan approaching I was inspired to write about the correlations between the holiday and philanthropy.

In 2016, I took part in a study abroad program in Morocco. We traveled to six cities, participated in a three-day trek through the High Atlas Mountains, and experienced a hands-on approach in researching the impact of global warming, all while engaging with an Islamic country.

As the trip unfolded, I began to realize how westernized I was in my understanding of Islamic culture. Prior to this trip my knowledge on the subject was limited to what I saw from the U.S. news. I knew that women covered their hair and that their Bible was called the Quran. It was a shameful realization that I did not know more than these superficial bits of information.

Upon my arrival, I saw that people indeed did dress modestly. Not all women had their hair covered, however, as I originally assumed. In fact, many women were wearing shorts and a tank top. I quickly learned that Morocco is considered a liberal Islamic country compared to others. This, of course, varied as we traveled to more rural spaces. Like here in my home country, the rural places tended to have more conservative views, while the cities were the opposite.

I became immersed in Moroccan culture through its food, language, and history. We were fortunate to study Islam at the Al Akhawayn University in Ifrane. There we learned the entire history of Islam, including its origins, and how the culture has evolved into its modern-day components. When I reflect on my exploration of Ramadan, I now make meaningful connections to the philanthropy sector where I currently work.

Ramadan is observed by Muslims all over the world and was established in the 7th century when the Quran was revealed to Muhammad. It is based on a lunar calendar and therefore, does not start on the same day each year. This year it will begin at sundown on May 5th and will conclude on June 4th.

During this religious month, Muslims are expected to fast from sunup to sundown. When I learned about these dietary restrictions, I remember one student asking our guide, “but what if you’re pregnant?”  I assume that most of us on the trip had never really practiced fasting other than the few Catholics who do mild fasting during Lent. I also was thinking “no food ALL day?” Our guide handled our ignorance with grace and answered our questions. He said, “pregnant women, young children, sick, or elderly are not expected to fast during Ramadan.” I was relieved to know that there were meaningful exceptions and then began to ponder, “why fasting?” It was at this point that I learned about the beautiful meaning of Ramadan.

During the month of Ramadan, not only do Muslims fast, but they are expected to stop all behavior that may be considered immoral. This may include smoking, drinking, and sexual activity--depending on how strictly you practice. Additionally, they are supposed to avoid having impure thoughts or using unclean words. These actions are meant to cleanse the soul of impurities, as well as empathize with the poor and hungry.

Although philanthropy can be found in many religions, what is interesting about Islam is that Zakat (alms giving) is the third pillar of the five that the religion is founded on. The meaning of giving is a crucial foundation of Islam. To practice Zakat means that if you make enough, an annual payment of 2.5 percent of your wealth will be given to the poor. Zakat is an important religious component of Ramadan. If one cannot fast during Ramadan, they are expected to practice Zakat and give food to the poor regularly. In fact, during Ramadan, every Muslim is expected to give to the poor more frequently.

Another aspect of Ramadan is self-reflection. Muslims are expected to practice self-reflection more frequently during Ramadan, including visiting mosques more regularly for prayer. During the holiday, they practice special prayers and some Muslims take this time to read the Quran in its entirety.  

After learning about this, I began to think about when I take the time to do this in-depth reflection and self-care. I began to understand the importance of Ramadan in which people are encouraged to get outside of themselves and their busy lives. The truth of the matter is that I really don’t do this often. I volunteer regularly. I fight for equality. I maintain to do what I believe is right daily. But on a spiritual level, I have not done anything as meaningful as Ramadan’s annual teachings.  

It is for all these reasons that I encourage you to please take some time during the month of May to learn more about Islam, Ramadan, and philanthropy. Discover how these three components are intertwined. There is always a way to connect by exploring our differences. You may be pleasantly surprised with what you find out and how the lessons can apply to your daily life. I know I was.