The Ethical Rainmaker: “Raises in a pandemic” with Ananda Valenzuela

By Michelle Shireen Muri, Freedom Conspiracy Principal and CCF co-chair

Episode Summary

During a double pandemic and a recession, hear a powerful story about how and why one organization decided to make the somewhat radical decision to retain all staff and give raises. This inspirational story comes from Ananda Valenzuela, Interim ED of RVC, who talks with Michelle about how these decisions were made and how their family and personal history have shaped their work and worldview.

About The Ethical Rainmaker podcast

In the United States alone, philanthropy is a $427 million dollar industry, of which 68% comes from individual donors. Yet the practices, theories, and foundation of modern philanthropy and fundraising often ignore the ways in which the industry perpetuates harm.

The Ethical Rainmaker, hosted by Michelle Shireen Muri, is a podcast that hosts authentic conversations grappling with the questions that we don’t often ask in the nonprofit world. Join us as we explore some of the practices that undermine our missions and navigate the way forward with today’s resisters, reimaginers, and the re-creators of the third sector. It’s time to think differently.

Listen to more episodes of The Ethical Rainmmaker on Simplecast

Michelle Shireen Muri

Michelle Shireen Muri

Michelle Shireen Muri (she/her) is the co-chair for Community-Centric Fundraising and the host of the new podcast, The Ethical Rainmaker, launching July 29. She is the founder of Freedom Conspiracy, a small collective of fundraising consultants focused on bringing values-aligned practices to clients in the nonprofit and philanthropy spaces. She can be reached at @freedomconspiracy on Instagram.

Nonprofit Industrial Complex 101: a primer on how it upholds inequity and flattens resistance

By Sidra Morgan-Montoya, Portland-based artist and writer 

To imagine new worlds, we need words that reflect our current one. Audre Lorde tells us, “The master’s tools will never dismantle the master’s house,” and I think this is why there is such a proliferation of new language on the left — we are describing forces we have purposefully been given no words to describe — new words to talk about gender, race, and identity — new words to talk about a diversity of internal experiences — new words to talk about the oppressive ways society is organized. We create these new words to describe truths we know deeply and simply but have not yet heard someone else speak.

I believe creating and updating lexicons are crucial in helping us see our world more clearly. I also believe it’s important to take the time to define and explain these words for people who weren’t around when they were crafted, because we risk excluding people with language that seems overly technical if we don’t.

And sometimes the language is overly technical, which is something those of us with the privilege of a certain type of education need to reckon with if we want to be part of accessible movements. Other times, specificity in language is necessary for the sharp definition it brings to something important.

The term “nonprofit industrial complex” is one of these pieces of language that benefit from definition. It needs a place in our shared vocabulary, for the way it helps us see the nonprofit sector more clearly.

What is an ‘industrial complex’?

There is a substantial amount of idealism in the mainstream imagination when it comes to nonprofits. “Charitable nonprofits embody the best of America,” proclaims the National Council on Nonprofits. “They provide a way for people to work together for the common good, transforming shared beliefs and hopes into action.” Nonprofits are held up as the path toward making the world a better place. However, as with most mainstream narratives, the truth is far messier. This is because of the nonprofit industrial complex.

It’s a little like setting off to explore the wilderness of radical change, only to realize you’re in a man-made hedge maze leading in one direction. Each bend of the maze is erected by a network of public and private entities — including the state, businesses, individuals, and nonprofits themselves — who make decisions that uphold the power each of them has in society. (Here, the ‘state’ refers to various arms of government and their role in maintaining society, including its oppressive principles.) These entities, and the way the relationships between them advances their interests rather than the public good, make up the nonprofit industrial complex.

The result is a labyrinth that restricts how we can move within nonprofits, funneling our work in certain directions and walling off others. It turns radical possibilities into dead ends, ensures that the path of least resistance is one that doesn’t challenge those in power, and amplifies corporate and state interests over the voices of those most impacted by inequity.

The nonprofit industrial complex helps the rich maintain control of their wealth — and of our movements

This April, Jeff Bezos generated dozens of headlines by donating $100 million to Feeding America to combat food insecurity in the wake of COVID-19. The scale of this donation created a screen of good PR at a time when Bezos and upper management at Amazon have come under fire for firing warehouse workers demanding safe working conditions during the pandemic.

And while $100 million may seem like a large sum, it is only half a percent of Bezos’s total wealth. Bezos may be an extreme example of wealth, but he embodies big philanthropy’s norms — rather than an exception. Nonprofits unwittingly become part of a story the wealthy elite use to normalize their wealth and avoid public scrutiny for their role in creating economic inequity. We are taught to see the wealthy’s charitable giving as proof of their moral character instead of wondering how they came to have so much money in the first place.

Even when massive donations happen outside the public eye, there is a financial benefit for the wealthy: To incentivize giving, both individual donations to charities and giving to private foundations are tax deductible. While this is meant to spur support for organizations serving the public good, it comes with unintended consequences.

First, it establishes private foundations as a legal way for the wealthy to avoid paying taxes on large chunks of their wealth. This effectively guts revenue for public social services for working class people — a trend that’s persisted for four decades.

Second, it facilitates further wealth accumulation for the rich. In the United States, foundations are legally required to give away 5% of their assets annually in order to ensure they are active in charitable giving. However, they rarely choose to exceed this 5%, instead investing the vast majority of their endowment in the stock market and growing their assets without ever giving a substantial share to charities.

“The reality is philanthropy is a system that allows rich people to maintain control of their wealth,” explains Dean Spade, activist and founder of Sylvia Rivera Law Project. “Instead of having it be taxed, they can put it into a foundation, which is still a bank account that they get to control what happens to.”

One way the heads of these foundations maintain this control is by choosing which political and economic projects they put their money toward. Foundation staff determine the criteria for which organizations receive their funding, allowing them to pick the causes that become better resourced. However, for the most part, foundations are not representative of the communities most impacted by inequity. A 2014 study found that white people comprise 91% of foundation executive directors, 83% of foundation executive staff, and 68% of program officers. This lack of diversity shows in how foundations give their money — the same study found that only 7% of foundation grant giving went toward nonprofits that explicitly serve people of color.

The structures of big philanthropy make it easy for nonprofits to become more invested in their funders’ agendas than in the communities they serve. Myrl Beam, author of Gay, Inc.: The Nonprofitization of Queer Politics, describes the effects of this process on the goals of queer liberation activism: “As the movement has become more and more reliant on a small number of wealthy donors, as well as corporations and private philanthropy, the goals of the movement began to shift to be more in line with what those funders would prioritize. So, why [gay] marriage? Because rich people wanted it, ultimately, and they drove the agenda of the movement with their donations.”

The nonprofit industrial complex helps the state suppress radical ideas

The above is only one example of the various ways the nonprofit industrial complex introduces means of top-down control into the way nonprofits operate. The state also monitors and suppresses leftist activity in nonprofits through the IRS, which watches for any political activity that may jeopardize an organization’s 501(c)3 status. For instance, a 1938 addition to tax code determined that any organization formed “to disseminate controversial or partisan propaganda is not an educational organization,” and therefore not eligible for tax-exempt status.

You can see how the state is afforded quite a bit of power because they are able to selectively enforce this limit in the tax code. For instance, the state is unlikely to grant exempt status to an organization whose primary mission is the abolition of the state itself (yet many right-wing hate groups have had no problem registering for exempt status). This means organizations with radical, leftist politics are forced to either water down their mission in order to comply with the IRS, or they must forgo 501(c)3 status and the ability to offer tax exemption to potential donors, which de-incentivizes giving. The result is a nonprofit sector that is limited in its ability to engage in transformative, community-led justice.

The nonprofit industrial complex creates a top-down relationship between nonprofits and communities

Too often, the above pressures cause nonprofits to engage with communities on the terms of the select few who have the most power. This sets organizations up to reinforce strategies that treat inequity as an issue of individuals rather than of systems, because these are the strategies that align with their funders’ worldview.

If nonprofits want to be a part of systemic change, they should instead be taking cues from grassroots movements built by communities. There are organizations created by and for the most marginalized, organizations that actively challenge the nonprofit industrial complex in the way they operate. While we’ve seen an increase in their numbers, it’s not uncommon for these organizations to remain outside of the nonprofit world, either due to lack of resources or because they intentionally choose to remain free of the nonprofit industrial complex’s influence. (After all, we know too well how often people of color in nonprofits are met with hostility and resistance when we challenge the status quo.)

The fact is, the very structure of the nonprofit sector serves to maintain the current world order, even when individuals in the sector seek to change it. This is the nature of the nonprofit industrial complex.

Moving toward empowered communities

People in radical nonprofits want to do good. We get into this work hoping to find a constructive avenue for our desire to fight for racial, economic, gender justice, and more. The nonprofit industrial complex blocks us from doing our work. It incentivizes top-down approaches to inequity, imposing the agenda of the wealthy onto the way nonprofits work, which nonprofits in turn impose through our engagement with communities. We know the current system isn’t a viable mode of political action. We know that emergent change originates at a grassroots level, from the communities most impacted by oppression. N’Tanya Lee, cofounder of socialist activist hub LeftRoots, puts it perfectly: “If you want a new society, you have to figure out a strategy where the people in leadership are the ones who have the most at stake in changing the society.”

Community-Centric Fundraising provides a different framework for thinking about how power flows through our organizations. Instead of reinforcing donors as agenda-setters in nonprofits, community-centric fundraising asks, how can we invite our donors deeper into conversations about the root causes of wealth inequity? How do we create accessible inroads for members to identify the best strategies for nonprofits?

We can use the term ‘nonprofit industrial complex’ to help us think more critically about how nonprofits operate in the world. Through its lens, we see that the nonprofit sector is not immune to the pressures of capitalism or structural racism. We see that, counter to dominant narratives, big philanthropy is not the ultimate solution to wealth inequity. Once we see clearly, we can continue conversations about how the nonprofit sector is complicit in systems of oppression — and what we can do about it.

Communities deserve to set the agenda for our own liberation. And nonprofits should be a resource for the struggle.

Further Resources

Sidra Morgan-Montoya

Sidra Morgan-Montoya

Sidra Morgan-Montoya (they/them) is a Chicanx multimedia artist working in performance, new media, and community-engaged arts facilitation. Their work considers identity in community, prodding the point at which our inner worlds and material reality touch. They enjoy napping, writing weird riot grrrl ballads, and swaddling tiny dogs in blankets in Portland. Their current project, a super gay anti-capitalist satire, can be found at @lifeofpi.nky on Instagram. General creative updates at @selfietheorist.

Why I decided to give up complicity in order to be an anti-racist volunteer manager

By Laura Pilati, Engagement Coordinator at Honoring Choices Virginia

Four months into a previous job as a volunteer manager at one of the oldest nonprofit organizations in the region, I sat down to talk with one white mentor, who privately shared his prejudice toward his Black mentees.

He wasn’t the last to do so.

When I first started, colleagues told me about racist incidents that had occurred at the organization: fundraisers where Black parents were asked to stay downstairs while their children performed music for white donors upstairs, an incident where a white volunteer called a Black child an “African queen,” how white children from wealthy private schools were invited to come and ‘teach’ Black children, white families who were matched with Black families to “mentor” them …

It was within this setting that I realized how we as volunteer managers are so often complicit in this insidious culture.

It was also these experiences that challenged me to be better and do more as a white anti-racist in the nonprofit sector. I’ve spent the last several years questioning the ‘best practices’ and unlearning much of the gospel of nonprofit management that I spent my early career condoning. What I now know is that we as volunteer managers should be among those leading the charge in the transformation of our sector.

Although volunteer managers are not always considered fundraising staff, we share our fundraising colleagues’ strength of trusted relationships with everyone who plays a role in the organization’s ecosystem: staff, clients, community members, leaders, donors, volunteers, and partners. Our unique opportunity, however, is that we are already familiar with the concept of community-centrism.

Volunteer managers are community-builders

Volunteer managers must think of ourselves as community builders, and our organizations as communities where individuals come together and work toward a common purpose.

When we label community members as “volunteer,” “donor,” “client,” or “staff,” we assign them to positions in a hierarchy, with power dynamics, and miss out on the opportunity to engage them more deeply and fully. A deeper engagement means authentic relationships between community members, where we learn from each other and hold each other accountable for our words and actions. All of us within the organization are capable of transforming the organization.

At the organization I mentioned earlier, children were eligible for services if their family’s income fell within a modest percentage of the poverty line. This meant that families were frequently characterized by descriptors like single parent households, adults working multiple jobs, or from Black or communities of color. Parents or guardians from these families would often bring treats for their child’s birthday or support family events, but were not recruited to volunteer in any other way.

When I suggested that family members should be regularly invited and encouraged to volunteer in the organization, and even recruited for leadership roles (for instance, as board members), I often met resistance and explicit prejudice. Colleagues would say, “They don’t follow through.” A coworker once explained to me that he knew it was time to ‘take the reins’ from family members at events after a family member made announcements with curlers in her hair.

A board member once told me, “They don’t have enough experience to be on the board.”

I responded by telling her about one of my suggested prospects, a current family member who worked at a university and had initiated a partnership with our organization. The board member’s response was one of surprise, indicating that she clearly had never met any of our family members.

Shortly after this conversation, the board began to consider family members in their recruitment.

Let me be clear: I have been very fortunate to work for organizations where my ideas for correcting organizational injustice were typically met with at least some level of receptivity. However, even in these positions, I was never part of the organization’s leadership team.

I should have been. We all should be.

One of my most powerful learning experiences was during my first “listening tour” as a volunteer manager (something that should be part of every volunteer manager’s regular work plan). At the end of my first year, I sent a brief survey to the parents and guardians of the children served by the organization. I wanted to better understand their feelings and experiences with the mentor program I was managing. Most of the feedback was positive.

However, several caregivers noted their child’s disappointment when mentors did not show up. Some had questions about the nature of their child’s meetings with the mentor. But more alarmingly, many did not even know that their child had a mentor.

It was because when the program was established years earlier, no formal parental/guardian permission was required for children to participate.

How did this even happen? Almost anytime a minor is involved, adult consent, if not legally required, is a best practice. Was it assumed that families would not care (or that it didn’t matter if they cared)? Was getting family consent deemed “time consuming” or unnecessary? Were mentors believed to be “do gooders” incapable of harm?

In short, was this, at best, carelessness in the organization — or at worst, another illustration of paternalism and prejudice in the organization?

We need to reject the premise that only some people belong or that only some people can give to the organization more than others.

Volunteer managers are unique among fundraising staff because our job is more focused on “friendraising” than fundraising. We see the ways in which injustice in fundraising is directly connected to programming, and vice versa. Volunteer managers can help our organizations see and realize a vision of a community-centric organization where caring for and building the community is everyone’s responsibility.

Volunteers are more than ‘do-gooders’

Let us recall the origin story of the nonprofit sector as we know it: Religious missions that tended to the poor and sick. Jennifer Ceema Samimi describes our original sin (on page 18):

“As the foundation of the social service industry began to establish its roots in religion against the backdrop of colonialism, the link to funding was also established. However, the idea of social justice, with a focus on the poor, was the target of service provision. Colonial notions of social justice were explicitly pursued by, and related to, the needs of the white settlers in America.”

It’s impossible to separate our modern volunteer programs from these roots.

Ask yourself: Why do our volunteer programs exist to begin with? Who benefits? What message is the organization sending? Our sector is full of volunteer programs that enable or perpetuate prejudice, white saviorism, and oppression — the very things that many of us are trying to uproot.

Take, for example, service learning programs. The organization I previously worked for was located adjacent to the city’s largest urban university, and students looking for opportunities to fulfill their course requirements for service hours (typically in the range of 20 hours for the entire semester) came in droves.

Prior to my arrival, student volunteers, who were barely adults, were ushered in to work in direct contact with children, without so much as an orientation. Background checks were inconsistent. Student volunteers would show up for an hour or two as they were available, leaving after their service requirements had been fulfilled with fantastical memories of their time spent with the children, who on the other hand barely remembered the volunteers.

If I had a dime for every time I heard a volunteer say, “It’s so nice to get away from the stress of campus!” …

My first move in the job was to close the gates until a consistent and more rigorous onboarding process could be implemented. My supervisor, the head of development, put trust in me as a new employee for two months as not a single new volunteer entered the organization. (Development directors, take note.)

Once established, the new onboarding process required an application, interview, background check, and orientation, as well as position-specific training and other requirements. Volunteers who wanted to work directly with children were required to commit to no less than one year of weekly service. When these requirements were found to be still insufficient to ensure consistency in the mentorship program, position requirements were changed to require two years commitment and for volunteers to be at least 21 years of age.

Cultural humility, acknowledging bias and prejudice, and systems change are not skills to be learned in a one-time training; they are an ongoing process of learning and self-reflection. We provided access to ongoing training in trauma-informed care and social justice, and I personally met with every single volunteer twice a year to share updates, revisit their commitment, and provide coaching.

This kind of effort is not possible without high expectations of volunteers.

Did we have fewer volunteers? Yes. Were our volunteers more committed to and engaged in the organization? Also yes.

And yet, we could have gone further.

In the mentorship program I managed, volunteers were expected to come once a week, for thirty minutes, to eat lunch and hang out with their mentees. In my first year, there were more people who did not follow through with this than who did. After repeatedly facing one pair of disappointed children whose mentor would often no-show, I confronted the mentor (who was also a white donor), conveying the feelings of his mentees.

And while my supervisor supported me by saying things like, “Even donors have to follow through on their expectations,” I often felt like the lone justice ranger with volunteers, setting the rules and holding them accountable when no one else in the organization would. Where was the rest of the community?

When we say yes to transactional organizations, we say no to community-centric organizations

Why do we as volunteer managers bend so much toward transactions, when we have so much to gain from relationships? Why do our organizations do the same?

When I entered the sector 10 years ago, any volunteer management association meeting would inevitably feature collective lamentation over the rise of episodic volunteers. But this has really never been challenged.

Service learning, voluntourism, corporate volunteerism, and even our legal system have contributed to this trend. While serving as an AmeriCorps member at HandsOn Greater Richmond immediately after college, I helped organizations invent projects for these transactional volunteers and pushed back on them when they did not want to accept court-ordered volunteers or youth/student volunteers (little did I know).

As the volunteer hub for our region, we received calls from hundreds of volunteers every year who had been ordered by a court to complete “community service hours” for a criminal violation. Courts do not consult with nonprofit organizations before ordering these hours. Yet we are expected to help fulfill them, forced to choose between leaving individuals potentially in violation of their sentence or to betray our organization’s desire for more meaningful engagement.

Allowing our own volunteer programs to be defined only by the service expectations of others maintains our complicity with transactional fundraising and volunteerism. It’s not that episodic volunteers can’t make valuable contributions, or can’t be part of a community-centric model; it’s, how are we responding to these pressures?

As a volunteer manager, I often found myself worrying about the volunteers I was saying “no” to. But what I realized is that by saying “no” to some things, I was also saying “yes” to a new vision of volunteerism.

There has been a movement among volunteer managers for decades to professionalize and self-advocate. But this is only teaching us to play within the existing system. It is true that we as volunteer managers are severely undervalued — like many front line staff — for our contributions to the organization. But this is an organizational problem, not a self-advocacy problem. In structuring our work in siloed positions that essentially perform the duties of a human resources manager for unpaid, often temporary workers, organizations continue to exploit resources, and all of us miss out on unrealized leadership potential — in both the volunteer manager and the volunteers themselves.

Ironically enough, by aligning ourselves with community-centrism, volunteers get what they want, too: meaningful relationships, a sense that they are making an impact, and belonging to something larger than themselves. Isn’t that what we all want

 

Ultimately, community-centric fundraising will mean dismantling many of the organizational structures and sector practices that currently exist, including the way we think about volunteerism. This won’t happen overnight. Although many of us would prefer to just “burn it down,” history has taught us that true cultural and societal transformation will require many steps and a lot of relational power. Volunteer managers, we know what we need to do. As my daughter’s “A is for Activist” board book says, “Yes to what we want. No to what must go!”

Laura Pilati

Laura Pilati

Laura Pilati (she/her) is a community-builder who has worked with small and grassroots/volunteer-run nonprofits for over a decade. She is a birth doula, facilitator, and trust-builder with formal degrees in social environmental science and nonprofit studies. Laura enjoys bike rides after dark, sitting on the front porch, and the smell of garlic fried in butter. She lives in Richmond, Virginia with her husband and daughter. She can be reached via email and also on LinkedIn.

CCF Town Hall

When: Monday, August 10, 2020 at 12pm PDT

Where: Online

Details:

We’re holding our first CCF Town Hall on August 10 over Zoom! This event will be a chance for everyone to meet some of our content contributors and learn more about their work and individual journeys. The format will be a panel discussion. You can register for it by clicking the button below! 

An update on starting new CCF chapters AND we’re working through a backlog of emails!

A lot has happened in just two short weeks! CCF went from a group of 10 committed Seattle-based volunteers to an international base of more than 10,000 people who have already joined our mailing list! WOW! We are so grateful to everyone who has emailed us, messaged us, liked our posts, shared our content, and told their friends and colleagues about us. Thank you!

We just want to give you all a quick update today on three big things:

1. We currently have a huge backlog to get through with our hello@communitycentricfundraising.org email address.

If you sent us an email to that address, thanks so much for your patience. It’s so appreciated! Right now, we have an incredible backlog that we’re trying to get through because of the high interest in CCF. We’ve started dividing up the work and creating systems so that it’s easier to sort through emails. Thanks for hanging in there.

2. Info on starting a CCF chapter is forthcoming! (We just need to figure out some things first.)

With so many people interested in starting chapters, we are brainstorming a more sustainable and efficient system than what we’d originally planned (and we’re taking advantage of some of you who wanted to volunteer).

We’re sorry this is taking a while — we’ve been learning and making decisions as we go. We just didn’t anticipate the interest would be so huge!

After our team works out the next steps, we are definitely going to communicate it out to you — through this mailing list and through our social media channels. We’ll also update our website to reflect the information. We’ll absolutely do our best to let everyone know what’s up when we know.

3. Save the date! CCF Town Hall on August 10!

We’re holding our first CCF Town Hall on August 10 over Zoom! This event will be a chance for everyone to meet some of our content contributors and learn more about their work and individual journeys. The format will be a panel discussion. You can register for it by clicking the button below!

Thanks so much for your interest, passion, support, kind words, and so much more! We really appreciate it. Talk soon!

Sincerely,
The CCF Seattle team