Giving Done Right: Episode Summary - "Avoid the Myths and Give Smarter with Alicia Smith Arriaga and Kevin Boldick"

Release Date: November 14, 2024

Introduction

In this insightful episode of Giving Done Right, hosts Grace Nicolette and Phil Buchanan engage in a thoughtful conversation with two esteemed colleagues from the Center for Effective Philanthropy: Alicia Smith Arriaga and Kevin Boldick. The discussion centers around debunking common myths in philanthropy and providing strategies for smarter, more impactful giving.

Guest Backgrounds

Kevin Boldick reflects on his journey to philanthropy, sharing, “When I first joined CEP, I realized that philanthropy isn't just about giving money—it's about creating lasting change” (02:20). His extensive experience spans over two decades, during which he has collaborated with numerous foundations and individual donors, gaining deep insights into effective grant-making and nonprofit collaboration.

Alicia Smith Arriaga brings a rich background in research and nonprofit leadership. Recalling a pivotal moment from her childhood, she shares, “When I was nine, Yolanda King walked into our living room... it instilled in me the belief that we’re here to serve” (04:45). Her passion for using data to drive change has been a cornerstone of her work, leading her to her current role as VP of Research at CEP.

Current State of Nonprofits: Burnout Among Leaders

Alicia highlights a significant concern in the nonprofit sector: leadership burnout. “One of the top reasons leaders experience burnout is staffing issues—high turnover and challenges in attracting and retaining talent” (09:36). This issue surpasses even traditional concerns like fundraising, indicating a pressing need for donors to provide flexible support. Alicia emphasizes, “Donors can support leaders by allowing flexibility in how funds are used, helping organizations navigate staffing challenges without restrictive grant conditions” (10:38).

Kevin Boldick adds, “If donors fixate on low administrative costs, they might inadvertently contribute to leadership burnout” (10:57). This underscores the importance of understanding the nuanced needs of nonprofit organizations beyond surface metrics.

Shifts in Philanthropy Since 2020

The pandemic and subsequent social movements have catalyzed significant changes in philanthropic practices. Alicia notes, “We’ve seen grants with fewer reporting requirements and more flexibility, allowing nonprofits to dedicate more time to their mission rather than paperwork” (18:37). This shift has enabled organizations to respond more dynamically to emerging challenges.

Phil Buchanan observes, “The introspection following 2020 has led to a sustained commitment to racial equity and more strategic grant-making” (22:42). This enduring change provides optimism that the sector will continue to evolve positively.

Mackenzie Scott's Impactful Giving

A focal point of the discussion is Mackenzie Scott's philanthropic approach. Alicia states, “Large unrestricted gifts from Mackenzie Scott allow nonprofits to scale their programs significantly without the pressure of immediate outcomes” (26:13). Her strategy empowers organizations to expand their impact sustainably.

Grace raises a pertinent question: “For individual donors who can’t match her scale, what lessons can be learned?” Alicia responds, “Even modest donors can adopt elements of her approach, such as minimizing reporting requirements and providing more autonomy in how funds are used” (28:08). This democratizes effective philanthropy, making impactful giving accessible to all donors.

Trust-Based Philanthropy: Benefits and Critiques

The conversation delves into the concept of trust-based philanthropy. Phil defines it broadly as, “Providing no-strings-attached donations that place real trust in the recipients’ expertise” (32:27). However, Kevin raises critical points, arguing for a more nuanced understanding: “Trust shouldn’t be a one-way street. It requires mutual respect and ongoing communication” (35:23). This highlights the balance between providing autonomy and maintaining accountability.

Alicia introduces the concept of philanthropy and solidarity, differentiating it from trust-based models by emphasizing a commitment to addressing systemic issues and prioritizing the voices of those most affected (34:00). This evolution reflects a deeper integration of equity and participation in philanthropic practices.

Nonprofit Governance and Effective Boards

The discussion shifts to nonprofit governance, addressing common misconceptions that scandals are rampant within the sector. Phil clarifies, “While scandals make headlines, they are exceptionally rare and overshadow the thousands of dedicated volunteer hours spent ensuring effective governance” (43:49). He advocates for boards to focus on strategic oversight rather than operational minutiae.

Alicia concurs, emphasizing the importance of strategic board engagement: “Boards should engage in high-level strategic discussions, utilizing tools like board matrices to ensure diverse and effective governance” (44:46). Resources such as BoardSource and A New Philanthropist are recommended for organizations seeking to enhance board effectiveness (47:22).

Future Aspirations for Philanthropy

The episode concludes with heartfelt reflections on the future of philanthropy:

• Alicia Smith Arriaga aspires for a philanthropic landscape where donors and nonprofits engage in humble partnerships, recognizing the complexity of social issues and committing to long-term equity efforts: “I hope donors will continue to trust and support nonprofits in addressing root causes of oppression” (48:33).

• Phil Buchanan envisions philanthropy as a steadfast pillar during societal challenges, fostering creativity and commitment to meaningful results: “Philanthropy must continue to support the social sector, which has historically driven significant societal advancements” (49:56).

• Kevin Boldick emphasizes the necessity of independent nonprofit support to achieve a just and equitable world, free from systemic inequalities: “Philanthropy and nonprofits are essential in creating a society where thriving is not dependent on one’s background” (50:44).

• Grace Nicolette highlights the transformative potential of shared wealth and community collaboration, advocating for both donor and community growth: “Impactful philanthropy transforms both donors and communities through mutual sharing and collaboration” (51:57).

Conclusion

This episode of Giving Done Right offers a comprehensive exploration of effective philanthropy, addressing critical issues such as leadership burnout, flexible grant-making, trust-based models, and governance. Through engaging dialogue and expert insights, Alicia Smith Arriaga and Kevin Boldick provide valuable guidance for donors seeking to maximize their impact and navigate the evolving landscape of nonprofit support.

For more resources and to listen to past episodes, visit cep.org or givingdoneright.org. Connect with the hosts at note@gdrpodcastep.org.

Notable Quotes:

• Alicia Smith Arriaga: “Nonprofits are using unrestricted funds to expand programs and serve more individuals effectively” (26:13).

• Phil Buchanan: “Trust-based philanthropy is about empowering nonprofits with the resources they need without rigid constraints” (32:27).

• Kevin Boldick: “Philanthropy and nonprofits are essential in creating a society where thriving is not dependent on one’s background” (50:44).

Note: Timestamps reference the beginning of the transcript provided for ease of locating quotes.