This Church Needed The Money, But Gave $500 To Every Member To Go Do Good In The World

After receiving an unexpected windfall of $1.6 million, a small Chicago church took a giant leap of faith earlier this month: it choose to give a chunk of the money away to congregants, with little more than a modest request for how it was to be spent.

Members of the the LaSalle Street Church in Chicago’s Near North Side were shocked when Pastor Laura Truax told them during services September 7 that each “actively engaged” member of the church would receive a check for $500. The money came with no conditions, but recipients were encouraged to use it for good works.
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“It feels like a faith experiment more than a social experiment,” Truax told The Huffington Post. “We say we trust the Gospel, we say we trust each other. But I was wondering, ‘Is this going to be a waste of money?'”

Church elders deliberated for months over how to spend the money — an unexpected windfall from a real estate investment made in the 1970s — mulling options that included a housing investment and an Ebola clinic in Africa. They agreed that while they’d eventually determine how to give all the money away, 10 percent would go to the congregation up front. In all, the church wrote 320 $500 checks to members deemed “actively engaged” with their “time, talents or treasures.”

Invoking the Biblical parable of Jesus feeding multitudes with nothing but a small amount of food, the money quickly became known to the social justice-minded congregation as the “Loaves and Fishes” checks. And church members immediately started thinking of ways the money could make a bigger impact in the world.

One church member, John Bakker, wants to use his $500 to help the non-profit World Vision create an Ebola education campaign in West Africa by leveraging social media the way the ALS Ice Bucket Challenge did so successfully.

“We need to act fast,” said Bakker, whose family has a 64-year-history of missions work in Nigeria. “Every 15 days, the number of people living with the virus doubles.”

Though Truax was anxious, admitting that “our little church has a budget hole of its own,” she’d put her faith in the congregation before: two years earlier, using $1,000 of her own money, Truax taped $100 bills under some of the pews to illustrate a parable about undeserved grace.

She later learned most of the 10 recipients used the cash to help someone else.

“Jesus is an unconventional guy. And he’s risky. And he’s bold,” Truax said. “It struck me in all this that he never bothers to write down his own story: He gives his followers incredible freedom to write down what he says. Jesus could trust it all. He trusted people would listen as they were going to listen and follow as they were going to follow.”

Only 13 members of LaSalle’s congregation were around when the church first bought into a residential complex in the neighborhood back in 1978. Worried poorer residents were being priced out, LaSalle and several other area churches bought stakes in the property to set aside affordable housing units. But when the covenants expired and the new primary developer wanted to sell, the churches negotiated for more affordable units in the new development. In exchange, they had to relinquish their shares in the property; each church walked away with $1.6 million.

GoFundMe Will Donate Extra $10,000 To Largest Fundraiser For Flint

Update: The campaigns raised a total of $405,000 for Flint residents by the contest’s closing date of February 2. The contest winner was Flint resident Marseille Allen, who raised $39K in total for her campaign Water for Flint, and received an additional $10,000 donation from GoFundMe.

Crowdfunding site GoFundMe just gave people an extra incentive to raise money for the Flint water crisis.

The campaign that raises the most money to supply clean drinking water to Flint, Michigan, residents between Friday, Jan. 22 and Friday, Jan. 29 will receive an additional $10,000 from GoFundMe.

GoFundMe CEO Rob Solomon urged uniting for a common goal in a press release.

“We hope that this challenge will inspire a friendly competition between these wonderful campaign organizers, with the overall goal of raising as much money as possible for those affected by this terrible crisis,” he said.

So far, people from Michigan and around the country have created 60 campaigns to raise over $170,000 for Flint residents.

On January 5, the government declared a federal state of emergency in Flint because of dangerous levels of lead in the public’s water supply. Nearly 27,000 children in the town are being treated for lead exposure, according to the Detroit News.

Current efforts to help the disproportionately poor and black residents of Flint include donations of bottled water, independent research on the water supply, and a petition asking Michigan’s governor to stop making residents pay for toxic water.

Why Giving Back Isn’t Enough

DURING this season of giving, I will join millions of Americans in volunteering to feed the homeless, contributing to clothing drives and donating to poverty-fighting charities. Yet I worry that through these acts of kindness, I absolve myself of asking deeper questions about injustice and inequality. We Americans are a remarkably bighearted people, but I believe the purpose of our philanthropy must not only be generosity, but justice.

The origins of formal philanthropy date from at least 1889, when the American industrialist Andrew Carnegie composed his “Gospel of Wealth.” He drafted this intellectual charter at the peak of the Gilded Age, when inequality had reached extreme levels. Carnegie argued, as many still do, that inequality on this scale is an unavoidable condition of the free-market system — and that it was even desirable, if the promise of wealth incentivized hard work. Philanthropy, he believed, would ease the pressure of rising social anxiety that followed from inequality — ameliorating the afflictions of the market without altering the market system itself.

During the 20th century, an entire field of institutional philanthropy emerged and flourished in the pattern of Carnegie’s mold. Iconic American families — Gates, Knight, MacArthur, Mellon, Rockefeller — endowed and expanded foundations that built schools and libraries, developed new vaccines, revolutionized agriculture and advanced human freedom. My own organization, the Ford Foundation, has given billions to support everything from public television in the United States to microlending in Bangladesh.

Our work has been indisputably for the good: Millions of people around the world have access to new tools and resources with which to improve their lives. A few months ago, the World Bank estimated that, for the first time in history, fewer than one in 10 human beings lives in extreme poverty. This is progress.

And yet, for all the advances made in the last century, society’s challenges may have outpaced philanthropy’s resources. Today, the cumulative wealth of the most generous donors seems a pittance compared with the world’s trillions of dollars’ worth of need. Generosity, blooming as it may be from legacies of both Carnegie’s age and the newly enriched, is no longer enough.

The world may need a reimagined charter of philanthropy — a “Gospel of Wealth” for the 21st century — that serves not just American philanthropists, but the vast array of new donors emerging around the world.

This new gospel might begin where the previous one fell short: addressing the underlying causes that perpetuate human suffering. In other words, philanthropy can no longer grapple simply with what is happening in the world, but also with how and why.

Feeding the hungry is among our society’s most fundamental obligations, but we should also question why our neighbors are without nutritious food to eat. Housing the homeless is an imperative, but we should also question why our housing markets are so distorted. As a nation, we need more investment in education, but not without questioning educational disparities based on race, class and geography.

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Our self-awareness — our humility — shouldn’t be limited to examining the problems. It should include the structures of solutions, like giving itself. As the Rev. Dr. Martin Luther King Jr. said not long before his assassination, “Philanthropy is commendable, but it must not cause the philanthropist to overlook the circumstances of economic injustice which make philanthropy necessary.” It is, after all, an offspring of the free market; it is enabled by returns on capital.

And yet, too often, we have declined to question our own circumstances: a system that produces vast differences in privilege, and then tasks the most privileged with improving the system.

Whatever our intentions, the truth is that we can inadvertently widen inequality in the course of making money, even though we claim to support equality and justice when giving it away. And while our end-of-year giving might support worthy organizations, we must also ask if these financial donations contribute to larger social change.

Wounded Warrior Project Spends Lavishly on Itself, Insiders Say

JACKSONVILLE, Fla. — In 2014, after 10 years of rapid growth, the Wounded Warrior Project flew its roughly 500 employees to Colorado Springs for an “all hands” meeting at the five-star Broadmoor hotel.

They were celebrating their biggest year yet: $225 million raised and a work force that had nearly doubled. On the opening night, before three days of strategy sessions and team-building field trips, the staff gathered in the hotel courtyard. Suddenly, a spotlight focused on a 10-story bell tower where the chief executive, Steven Nardizzi, stepped off the edge and rappelled toward the cheering crowd.

That evening is emblematic of the polished and well-financed image cultivated by the Wounded Warrior Project, the country’s largest and fastest-growing veterans charity.

Since its inception in 2003 as a basement operation handing out backpacks to wounded veterans, the charity has evolved into a fund-raising giant, taking in more than $372 million in 2015 — largely through small donations from people over 65.
Today, the charity has 22 locations offering programs to help veterans readjust to society, attend school, find work and participate in athletics. It contributes millions to smaller veterans groups. And it has become a brand name, its logo emblazoned on sneakers, paper towel packs and television commercials that run dozens of times.

But in its swift rise, it has also embraced aggressive styles of fund-raising, marketing and personnel management that have many current and former employees questioning whether it has drifted from its mission.

It has spent millions a year on travel, dinners, hotels and conferences that often seemed more lavish than appropriate, more than four dozen current and former employees said in interviews. Former workers recounted buying business-class seats and regularly jetting around the country for minor meetings, or staying in $500-per-night hotel rooms.

The organization has also spent hundreds of thousands of dollars in recent years on public relations and lobbying campaigns to deflect criticism of its spending and to fight legislative efforts to restrict how much nonprofits spend on overhead.

About 40 percent of the organization’s donations in 2014 were spent on its overhead, or about $124 million, according to the charity-rating group Charity Navigator. While that percentage, which includes administrative expenses and marketing costs, is not as much as for some groups, it is far more than for many veterans charities, including the Semper Fi Fund, a wounded-veterans group that spent about 8 percent of donations on overhead. As a result, some philanthropic watchdog groups have criticized the Wounded Warrior Project for spending too heavily on itself.

Some of its own employees have criticized it, too. William Chick, a former supervisor, spent five years with the Wounded Warrior Project. “It slowly had less focus on veterans and more on raising money and protecting the organization,” he said.

Mr. Chick, who was fired in 2012 after a dispute with his supervisor, said he saw the Wounded Warrior Project help hundreds of veterans. But like other former employees, he said the group swiftly fired anyone leaders considered a “bad cultural fit.”

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Eighteen former employees — many of them wounded veterans themselves — said they had been fired for seemingly minor missteps or perceived insubordination. At least half a dozen former employees said they were let go after raising questions about ineffective programs or spending.

A spokeswoman for the charity said it fired those people because of poor performance or ethical breaches, and that each of them was given the opportunity to address their work problems.

The spokeswoman, Ayla Tezel, said that more than a third of the charity’s employees are veterans, and that the organization is rated one of the top nonprofits to work for by The NonProfit Times.

“Sometimes employees make poor choices that can’t be overlooked,” Ms. Tezel said. “And sometimes those employees are veterans.”

A For-Profit Model

Veterans organizations in the United States often reflect the era in which they were created: After World War I, they resembled fraternal orders. After Vietnam, many focused on advocacy in Washington.

A Philanthropist Drills Down to Discover Why Programs Work

PHILANTHROPISTS have poured millions of dollars into improving education in the United States — paying for new buildings, buying new computers and even creating new charter schools.

Susan Crown, a member of the billionaire Crown family of Chicago, is trying something different. Two years ago, she began working with organizations that seek to foster character traits like grit, empathy and perseverance, which studies show can be determinants of future success.

But financing organizations that focus on social and emotional learning programs for disadvantaged children was just part of the effort. Ms. Crown said she also wanted to go deeper into understanding why some organizations succeeded so well.

“This is my second chapter of foundation life,” Ms. Crown said. “It’s the exact opposite of my first chapter, which was widespread, very regional, not terribly strategic. There were a million moving pieces. This is a very focused, intentional, high-risk program.”

After examining hundreds of applications, she picked eight organizations to support and study as part of what she called the Susan Crown Exchange.

The organizations each received $100,000. In return, she asked them to gather three times over the two-year period of the grant to dissect what they were doing and why it had proved successful. Her goal was to find the secret sauce and reveal it to other organizations trying to do similar work.

The organizations selected for the program do not offer typical after-school programs. One brings teenagers together to create, write, produce and act in musicals with themes like sexual abuse, bullying and urban violence. Another teaches inner-city students how to build wooden boats.

Yet these programs seemed to be improving the lives of the small number of participants they served. How were they doing it, and could it be replicated?

Yamir Jackson-Adens, 18, began going to the Philadelphia Wooden Boat Factory in eighth grade. Living in a poor section in the northeast part of the city, he said he had been bullied in elementary school, and he was still shy. The boat program intrigued him, even though he knew no one who owned a boat.

“In boat building, you learn stuff,” Mr. Jackson-Adens said. “You’re free to move. You don’t have a whole lot of restrictions. It’s more of a trial-and-error kind of thing. You learn from those mistakes. In school, if you fail, you’ve failed.”

The Art & Practice of Global Philanthropy Workshop

Navigating the field of global philanthropy can be challenging, especially when you are an individual donor or working for a small foundation. Barriers such as identifying partners, setting clear expectations, performing due diligence and reporting, transferring funds, geography, lack of on-the-ground relationships, unstable legal and governmental structures, and the U.S. regulatory environment can stymie even the most sophisticated donor. Despite this complexity, international giving from US-based foundations, corporations and individuals is on the rise, and it is having a significant impact in reducing poverty, securing human rights, empowering communities and providing humanitarian relief. This growth requires donors to rapidly develop new skills and knowledge in order to engage in global work in a relevant, well-informed and culturally sensitive way.

Please join Philanthropy Northwest, Pangea Giving and the Northwest Global Donors Exchange for a full-day, interactive workshop that will examine key issues and considerations related to global giving. Participants will learn from philanthropic and nonprofit leaders alike and will come away with new connections with peers and a deeper understanding of the:

Evolving landscape of international giving with the context of overall philanthropic giving;
Alignment of mission, personal motivations and the intended impact of your giving;
Technical and legal differences between various pathways to give abroad; and
Strategies for identifying and vetting potential grantees.

FACILITATORS:

John Harvey holds more than 20 years’ professional experience in global philanthropy and is an acknowledged and respected leader in its advancement. As Founding Principal of Global Philanthropy Services, LLC, John offers strategic, programmatic, and talent management support to foundations and philanthropic support organizations globally. From 2011 to 2013, John served as Managing Director for Global Philanthropy at the Council on Foundations. Prior, John served for 10 years as founding Executive Director of Grantmakers Without Borders (now called EDGE Funders Alliance), a funder affinity group whose members fund social change programs globally.
When:
Thu, April 7, 2016, 9:00am to 3:30pm
PDT
Where:
Seattle, WA
Location:
2101 Fourth Avenue Suite 650 Seattle, WA 98121