Giving Done Right: Episode Summary – "Giving Locally with Mike Bontrager and Stephanie Almanza"

Introduction In the December 3, 2024 episode of Giving Done Right, hosts Grace Nicolette and Phil Buchanan engage in a profound conversation with a father-daughter duo, Mike Bontrager and Stephanie Almanza, from Square Roots Collective. This episode delves into the intersection of business, trust, and philanthropy, illustrating how familial bonds and community-focused ventures can drive meaningful change at a local level.

Building Trust in Business The conversation begins with Phil Buchanan emphasizing the importance of collaboration over personal agendas. At [00:28], Phil states:

“Look, we really want to be a collaborative player. We want to work with others. We really want to see the thriving of this community. And that is a bigger agenda than just our own personal agenda.” ([00:28])

Mike Bontrager, the founder of Chatham Financial, provides a foundational understanding of derivatives, explaining their role in mitigating financial risks for clients. Despite the complexities of the financial sector, Mike underscores a philosophy that prioritizes trust over profit. This perspective is particularly noteworthy given the stereotypical view of finance professionals prioritizing profit margins above all.

A Profound Shift: From Profit to Purpose Mike shares a transformative moment in his entrepreneurial journey, highlighting how a personal spiritual experience redirected his focus from mere profit to fostering trust within his business practices. At [03:57], Phil recounts:

“I think over time what I started to say to my team is, you know, we are in the trust business. Derivatives is merely a delivery mechanism of our true product, which is trust.” ([07:56])

This shift fundamentally altered Chatham Financial’s operational ethos, leading to decisions that favored long-term client relationships over immediate financial gains. An illustrative anecdote is Mike’s decision to rectify a trading mistake by compensating a client, reinforcing the company's commitment to integrity and trustworthiness.

Transition to Philanthropy: Square Roots Collective In 2019, Mike retired from Chatham Financial to establish Square Roots Collective, an umbrella organization dedicated to various projects aimed at uplifting Kennett Square, Pennsylvania—their hometown. Stephanie Almanza, Mike’s daughter, now leads the real estate division and plays a pivotal role in the executive team. Stephanie explains the town’s unique blend of agricultural roots and significant wealth:

“Kennett's probably the smallest big town that I know of... we have really an incredible amount of wealth. So after high school... I fell in love with [commercial real estate].” ([11:04])

Square Roots Collective: Mission and Structure Square Roots Collective operates through a combination of for-profit and non-profit ventures aimed at creating a thriving, inclusive community. Stephanie elaborates on their mission to address root causes and foster opportunity:

“We're trying to really create a community here where everyone has the ability and opportunity to thrive. We're really place-based.” ([14:08])

Key projects include:

• The Creamery: A beer garden that serves as the for-profit engine, integrating local culture and art.
• Art Motel: A renovated 14-room motel featuring murals by local artists, blending hospitality with community storytelling.
• Cocktail Lounge: An underground railroad-themed bar that ties into their broader narrative of racial healing.
• Trails Organization: Developing a 14-mile trail loop connecting major local assets to enhance accessibility and community engagement.
• Partnership with Lincoln University: Focusing on racial healing through storytelling, aligning with the historical significance of the Underground Railroad in the region.

Collaboration and Addressing Critiques Phil and Stephanie discuss the challenges of balancing substantial financial influence with local autonomy. They acknowledge critiques regarding donor influence but emphasize the necessity of collaborative efforts for systemic change. At [20:26], Mike responds to concerns about disproportionate influence:

“This is tough, right, because everybody has kind of a vision of what they want for their town or how it should be... we want to see the thriving of this community. And that is a bigger agenda than just our own personal agenda.” ([20:26])

Their approach centers on partnership rather than paternalism, ensuring that local voices guide the development processes.

Voices Underground: Racial Healing Through Storytelling A significant portion of the episode focuses on Voices Underground, a non-profit initiative dedicated to elevating the often-overlooked narratives of the Underground Railroad. Stephanie shares the inspiration behind this project:

“There's extra effort that has to happen to tell those stories and lift them up and uncover them. It's the harder side of the story to research and to find and to tell.” ([32:56])

This initiative includes establishing a research center at Lincoln University, leading Juneteenth celebrations, and planning a national memorial. The goal is to foster racial healing by creating spaces for dialogue and understanding through historical storytelling.

Trust in Community Projects Phil elaborates on the complexities of building trust within a small community:

“In some ways, it's easier to build trust, but in other ways, it's much more difficult... How do we build trust? And that's through relationships. It's through giving.” ([42:37])

Their strategy involves active engagement, withdrawing support to demonstrate trust in other organizations, and prioritizing community collaboration over individual agendas.

Family Dynamics in Philanthropy Stephanie and Mike discuss the dynamics of working together in a family business. Stephanie offers valuable advice:

“Your relationship with your family personally is very different from your relationship with your family professionally.” ([28:58])

They emphasize the importance of distinguishing between personal and professional interactions, fostering mutual respect, and developing a shared vision for their philanthropic endeavors.

Final Advice: Building Effective Community Partnerships As the conversation winds down, both guests offer insights for donors and families aiming to make a local impact:

• Stephanie highlights the necessity of active listening and inclusive feedback mechanisms to genuinely understand and address community needs.

  “It's active listening and these feedback loops of trying something, getting feedback from the community... we have created some really great grassroots communication networks.” ([44:32])

• Phil encourages integrating for-profit ventures with non-profit missions to amplify impact creatively.

  “There’s this cycle effect not only from the funds, but also we are being able to do things that we would not be able to do if they were two separate organizations.” ([46:31])

Conclusion The episode of Giving Done Right featuring Mike Bontrager and Stephanie Almanza offers a compelling exploration of how trust, collaboration, and family dynamics intertwine to drive effective philanthropy. Through their multifaceted approach in Kennett Square, they exemplify how local initiatives, when grounded in trust and collaborative spirit, can foster enduring and meaningful community transformations. This conversation serves as an inspiring blueprint for donors and philanthropists aiming to make a substantial local impact.

Notable Quotes with Timestamps

• Phil Buchanan at [00:28]:

  “Look, we really want to be a collaborative player...”

• Phil Buchanan at [03:57]:

  “[We are] in the trust business. Derivatives is merely a delivery mechanism of our true product, which is trust.”

• Stephanie Almanza at [11:04]:

  “Kennett's probably the smallest big town that I know of... we have really an incredible amount of wealth.”

• Phil Buchanan at [20:26]:

  “This is tough, right, because everybody has kind of a vision of what they want for their town...”

• Stephanie Almanza at [32:56]:

  “There's extra effort that has to happen to tell those stories and lift them up and uncover them.”

• Phil Buchanan at [42:37]:

  “...we are trying to go to that 50 middle and really say, how do we build trust.”

• Stephanie Almanza at [44:32]:

  “It's active listening and these feedback loops...”

• Phil Buchanan at [46:31]:

  “...there's opportunities to really be connecting for profit and nonprofits together...”

For more insights and resources on effective giving, visit the Center for Effective Philanthropy’s website at cep.org and givingdoneright.org.