Summary of "What Does a Trump Victory Mean for Nonprofits and Donors Focused on Democracy? With Stephen Heintz"

Podcast Title: Giving Done Right
Host/Author: The Center for Effective Philanthropy
Episode Release Date: December 5, 2024
Guest: Stephen Heintz, President and CEO of the Rockefeller Brothers Fund

1. Introduction

In this compelling episode of Giving Done Right, hosts Phil Buchanan and Grace Nicollette engage in an in-depth conversation with Stephen Heintz, President and CEO of the Rockefeller Brothers Fund (RBF). With an endowment exceeding $1.4 billion, RBF is dedicated to fostering social change for a more just world, emphasizing democracy, peacebuilding, sustainable development, and the arts. This discussion is particularly timely, recorded just weeks after Donald Trump's victory in the U.S. Presidential election, addressing the implications for nonprofits and donors committed to supporting democracy.

2. Reaction to Trump's Victory and the State of Democracy

Stephen Heintz begins by sharing his immediate feelings following the election results:

"[00:29] Stephen Heinz: That is a difficult practice, civic empathy, but it is essential and I think we all need to kind of retrain ourselves in this skill and really listen to each other."
"[02:42] Steven Heinz: ...it feels very both disturbing and disorienting because it doesn't feel like the country I grew up in or the country I have believed in in some respects... The events since Election Day... have really heightened what I think are the perils to our democracy coming in the next four years."

He acknowledges the calm and orderly conduct of the election process but expresses concern over the deepening polarization and the swift aftermath events, which pose significant threats to democratic stability.

3. Role of Nonprofits in Political Polarization

Phil Buchanan raises a critical point regarding post-election analyses blaming identity-based, single-issue nonprofits for pushing Democrats too far left. He references opinions from figures like Adam Gentleson and Michael Lind, questioning the actual influence of such nonprofits on electoral outcomes.

Heinz counters this notion by emphasizing the complexity of the issue:

"[05:53] Steven Heinz: ...some nonprofit groups, including some foundations, have contributed to the sense of polarization... Are we helping to heal the divisions in America or inadvertently... contributing to the divisions by how we focus on very narrow subsets of issues?"

He stresses that blaming the entire nonprofit sector is an oversimplification and undermines trust in these organizations, which are vital to democratic health.

4. Advice for Donors Supporting Democracy

Grace Nicollette poses a crucial question about the differentiation between political and charitable giving, seeking guidance on how donors can effectively support democracy.

Heinz offers strategic advice:

"[08:04] Steven Heinz: The first advice I have is start giving to democracy. ... In 2023,... philanthropic giving for things to strengthen American democracy... was about 2% of giving."

He encourages donors to:

1. Begin Supporting Democracy: Emphasizes the low percentage of current philanthropic support for democracy and urges donors to increase their contributions.
2. Take the Long View: Acknowledges that strengthening democracy is a long-term endeavor, requiring sustained effort beyond election cycles.
3. Focus on Institutional Reforms and Civic Culture: Balances the need for structural changes with fostering trust and civic engagement among citizens.

He also highlights the importance of maintaining a clear boundary between political and charitable giving, ensuring nonprofits remain nonpartisan while individuals exercise their First Amendment rights to support political causes.

5. Resources and Recommendations for Effective Giving

Heinz points donors towards valuable resources:

"[12:05] Steven Heinz: ...the 'Our Common Purpose' report,... remains absolutely relevant... 31 quite specific recommendations... groups are working to advance those recommendations... are really good targets for philanthropic giving."

He recommends:

• Our Common Purpose Report: A foundational document outlining actionable steps to strengthen U.S. democracy.
• American Academy of Arts and Sciences: Hosts gatherings and provides resources to support democratic initiatives.
• Brennan Center for Justice: Offers insights into voting restrictions and advocacy for expanded voting access.

6. Case Studies: State-Level Progress and Initiatives

Phil Buchanan inquires about tangible progress at the state level, to which Heinz responds with the example of ranked-choice voting:

"[13:44] Phil Buchanan: Can you give us an example of the progress at the state level?"
"[13:48] Steven Heinz: ...ranked choice voting... Alaska... provides incentives to candidates to speak to a broader segment of the voting population..."

He explains how ranked-choice voting encourages more inclusive campaigning and enhances voter representation. Additionally, Heinz highlights efforts to expand voting accessibility, citing reduced restrictions as a critical area of focus.

7. Trust for Civic Life: Building Trust in Rural and Small Communities

The conversation delves into the Trust for Civic Life, an initiative aimed at fostering civic engagement in underserved areas:

"[22:56] Steven Heinz: ...the Trust for Civic Life was an idea promoted in our common purpose to create a national financing vehicle to get small grants into the hands of civic leaders in small town and rural America..."

Heinz details how the Trust funds projects that bring communities together to solve local issues, thereby rebuilding trust and civic culture. Supported by diverse funders like RBF, Stand Together, Omidyar Network, Walmart Foundation, Carnegie Corporation, and Packard Foundation, the Trust has already distributed grants to 20 civic hubs with plans for 100 more.

8. Challenges and Optimism in Strengthening Democracy

Grace Nicollette expresses concerns about increasing atomization and the spread of misinformation, questioning the feasibility of overcoming these hurdles.

Heinz responds with cautious optimism:

"[30:56] Steven Heinz: ...the American experiment... the genius of America lies not in its being better than any other country. It lies in its ability to correct its faults... I am optimistic in the long term..."

He acknowledges the significant challenges, such as constitutional constraints and societal divisions, but remains hopeful about America's capacity to address and rectify its democratic shortcomings through sustained effort and civic engagement.

9. The Role and Criticism of Philanthropy in Democracy

Grace raises a critical issue regarding the perception of philanthropy as an anti-democratic force, questioning how to address concerns about elite influence.

Heinz confronts this criticism head-on:

"[36:19] Steven Heinz: ...philanthropy is the product of massive economic inequality and we just have to own that... We have to prove through transparency and accountability that we are putting that wealth to good use for the common good."

He emphasizes:

• Acknowledgment of Philanthropy's Origins: Recognizes the role of economic inequality in enabling philanthropic endeavors.
• Transparency and Accountability: Advocates for openness in philanthropic activities to build trust and demonstrate positive impact.
• Defending Philanthropy's Essential Role: Highlights the importance of philanthropy in supporting the nonprofit sector, which is crucial for democratic vitality.

10. RBF's Divestment from Fossil Fuels: A Symbolic and Practical Move

A significant part of the discussion revolves around RBF's decision to divest from fossil fuels in 2014, a move reflecting moral responsibility and strategic investment:

"[39:18] Steven Heinz: ...we were really uncomfortable with the moral hypocrisy in that equation... we announced that at Climate Week in New York City in September of 2014... it's the symbolic gesture of Rockefellers standing up and saying, it is no longer appropriate to be invested in fossil fuels..."

He highlights the outcomes of this decision:

• Market Influence: Sparked inquiries from fund managers worldwide and contributed to the broader divestment movement, now encompassing trillions in assets.
• Positive Investment Performance: RBF's endowment outperformed benchmarks over a decade, allowing for increased philanthropic commitments to climate initiatives.

11. Stephen Heinz's Background and Influence

Heinz shares his personal journey into philanthropy, emphasizing his hands-on experience in politics and international development:

"[46:37] Steven Heinz: ...My parents were very committed to civic life... decided to move to Eastern Europe and try to do something helpful in the historic process of transition to democracy and market economies... co-founders of Demos..."

His background informs his empathetic leadership at RBF, fostering a deep appreciation for the challenges faced by nonprofits and the importance of effective philanthropy.

12. Conclusion

The episode concludes with heartfelt acknowledgments from Phil and Grace, expressing gratitude for Stephen Heinz's invaluable contributions to both their personal and professional lives. Heinz reciprocates the sentiment, highlighting the mutual benefits derived from his relationship with the Center for Effective Philanthropy.

Key Takeaways

• Philanthropy's Critical Role: Effective giving, especially towards strengthening democracy, is essential for addressing deep-rooted societal challenges.
• Strategic Donor Engagement: Donors are encouraged to support democracy as a distinct issue area, focusing on long-term solutions and fostering civic culture.
• Building Trust in Communities: Initiatives like the Trust for Civic Life are pivotal in revitalizing civic engagement and trust, particularly in rural and small-town America.
• Addressing Criticisms of Philanthropy: Transparency and accountability are vital in mitigating concerns about elite influence and ensuring philanthropy serves the common good.
• Symbolic and Practical Impact of Divestment: RBF's divestment from fossil fuels exemplifies how philanthropic actions can drive significant market and societal changes while maintaining positive investment performance.

Notable Quotes

• Stephen Heinz at [02:42]:
  "...it feels very both disturbing and disorienting because it doesn't feel like the country I grew up in or the country I have believed in in some respects."

• Phil Buchanan at [04:18]:
  "Folks coming out and actually saying that they believe identity-based, single-issue nonprofit groups are to blame for polling the Democrats too far to the left."

• Stephen Heinz at [08:04]:
  "If you are not a donor in the democracy space, please become one."

• Stephen Heinz at [13:48]:
  "Ranked choice voting... encourages candidates to speak to a broader segment of the voting population."

• Stephen Heinz at [36:19]:
  "Philanthropy is the product of massive economic inequality and we just have to own that."

For more insights on effective giving and resources discussed in this episode, listeners can visit cep.org and givingdoneright.org.