On this week’s episode, Elise Westhoff joins to discuss philanthropic giving in 2020, including the most recent data on charitable giving during COVID. We’ll also discuss how private giving tends to solve social challenges better than the government, why donor privacy is paramount, and debate whether or not diversity and inclusion mandates in the philanthropic sector have been helpful or harmful.
Elise joined The Philanthropy Roundtable as President and CEO in June 2020. Before joining the Roundtable, she was the executive director of The Snider Foundation, a family foundation founded by the late Ed Snider. With Mr. Snider’s donor intent at the forefront, the foundation defined program areas and developed a cohesive grantmaking strategy during her tenure. From 2009 to 2013 Elise directed major gifts fundraising for neuroscience programs at the Indiana University School of Medicine and she is a member of the board of directors of the Commonwealth Foundation and a member of the Forum of Executive Women.
Transcript
Beverly:
Welcome to She Thinks, a podcast where you’re allowed to think for yourself. I’m your host, Beverly Hallberg. And on today’s episode, we discuss philanthropic giving in 2020, including the most recent data on charitable giving during COVID. We’ll also discuss, how private giving tends to solve social challenges better than the government. Why donor privacy is paramount, and debate whether or not diversity and inclusion mandates and the philanthropic sector have been helpful or harmful.
Joining us to discuss all of this is Elise Westhoff. And before we bring her on, a little bit more about her. Elise joined The Philanthropy Roundtable, as President and CEO in June of this year. Before joining the Roundtable, she was the Executive Director of the Snider Foundation, where she defined program areas and developed a cohesive grantmaking strategy. From 2009 to 2013, Elise directed major gifts fundraising for neuroscience programs at the Indiana University School of Medicine. Finally, she is a member of the board of directors of the Commonwealth Foundation and a member of the Forum of Executive Women. Elise, a pleasure to have you on, She Thinks today.
Elise:
Thank you so much for having me.
Beverly:
Now during December, the end of the year is when people who work in the philanthropic sector are extremely busy because so many people give at the end of the year. So I thought I would first just kind of take a step back. And have you talk to us about, who typically gives? Why do people give? Why always in December? Or why is it so common in December? And just explaining, what really are the drivers for people wanting to give?
Elise:
Well, throughout America’s history, we have seen generous citizens throughout our country, participating in charitable giving. They’ve voluntarily turned to charity to help solve society’s problems, without external control. Givers are really everywhere, they’re all around us. There are major philanthropists who give billions, and there are people who generously give, $10 or $5 to their church or to their local food bank. So charitable giving is an important part of the fabric of our society. And people often give at the end of the year, I think for a couple of reasons. One is they’re thinking about, it’s the season of giving, and some people are prompted by thinking about reaching out to others who may be a need, just because it’s top of mind, thinking about caring for others. And also because it offers tax benefits. And this is a time of year where people want to make sure that they meet those needs. But we have found that, especially in times of crisis, people give throughout the entire year, and especially this year, we’ve seen that throughout COVID.
Beverly:
So, can you break down some of the data for us on giving during COVID-19, I think they’re some of us who would wonder if giving is as high or as previous years, or even higher, with so many people struggling financially. There are a lot of economic hardships that people have, in losing their businesses and losing their jobs. So are you seeing that the giving is at least at the same level as previous years? And potentially even higher?
Elise:
We are seeing that. Everyone was a bit concerned when COVID began and we were concerned about jobs and the economy in general. But we have found that people are voluntarily giving more than ever. Charitable giving was up to during the first six months of the year by seven and a half percent. And we expect to see that continue. In 2020 charity has been critical in responding to COVID-19 relief efforts. And this is partly because philanthropy can really be quick and nimble and meeting needs and getting resources to those who are struggling quickly. Whereas the government, as we’ve all seen, has been slow to respond because of some of the bureaucracy and political tension that exist.
One thing that was really heartening, according to the Getting Tuesday Organization. 34.8 million people participated in Giving Tuesday this year, with Americans giving $808 million online, and 2.47 billion overall. This is a 29% increase over the 2019 total record giving level of 1.97 billion. And more than double the 2018 online level with just 400 million. So participation has included getting cash, volunteering, doing acts of kindness. And the U.S. and throughout 70 other countries. But America’s tradition is truly special and unique.
Beverly:
And when we think about those who are struggling right now, there’s a debate about PPP loans and making sure that businesses that are forced to stop have access to funds. You talk about the importance of private giving because it’s done quickly. Have you seen that there has been a big effort to help restaurants specifically across the country, at least in those specific States like New York, like California, where there have been many shutdowns, not just one? How have you seen private giving try to step in and fill in the gaps since government funding isn’t getting to all the right people and not nearly as quickly as needed?
Elise:
We have seen people step in where there are gaps in really significant ways. There were some really prominent stories of this, and also some smaller ones. Before I came to the round table, I ran a family foundation in Philadelphia. And we started our own fund just for restaurant workers and distributed $500 direct contributions to people who were struggling and filled out an application in the restaurant business. And I know that has been done on a much larger scale as well. So the unique thing about Philanthropy is that we can look at who is really struggling in the moment. Doesn’t have the access to the government help that they need, and in this time of crisis, and just respond quickly. And that’s exactly what Philanthropy has done.
Beverly:
So, what do you say to people who think we shouldn’t have to rely on Philanthropy to pick up the slack when the government should actually be the ones that are doing more? What do you say to people who think that the answer is just a bigger government and more funding by the government to help those in need?
Elise:
Well, there’s certainly a role for government, especially in times of crisis. And we’re dealing with a global pandemic right now. So I absolutely believe that the government has to play a role. But I think that philanthropy and government can complement each other and really help enhance our response. And again, be nimble and quick at the moment. We don’t believe in one size fits all solutions. And so, one of the things that philanthropy offers us to do, is looking at different communities, respond to those different communities that have different needs in different ways. And so philanthropy is a way to really be in touch with the needs of a community, very directly. Many times, people on the ground and those living in those communities are dealing with challenges. And they’re the best people to devise a solution with philanthropic partners, rather than only relying on the government to do that.
Beverly:
And one of the things you mentioned earlier, which I think is a key for a lot of people, is that, in addition to wanting to help people and doing good, there’s that added benefit of tax-deductible giving. Have there been efforts to try to change tax policy on charitable giving? And is that a concern moving forward into 2021 and years even beyond that?
Elise:
We do have concerns about various proposals that are out there, that we believe would curtail or stifle giving. There’s a lot of criticism of philanthropy. It’s seen as, something people use strictly for tax benefits, but what we actually see is that philanthropists are incentivized by having the ability to get a tax benefit, rather than go buy a yacht. They are incentivized to give to charity. But they’re doing it because they’re passionate about the things that they care about and want to invest in. And we want to help support that, not stifle it.
So, we’re particularly concerned about one proposal that’s come up that would impact smaller givers. People who use donor-advised funds. They’re really a charitable account that allows a lot of flexibility, and they’re very appealing to smaller donors. And there’s a proposal on the table now that would significantly limit the flexibility around those, and force those to pay out their funds more quickly than some would like. A lot of people like to give their money really quickly out of a (DAF), a donor-advised fund, which we call a DAF.
Some like to think about the long-term needs of the community, or thinking about involving their children in their giving over time. And this proposal would take away that opportunity. There’s been a lot of pushing for… Spending money now for decades, and had everyone done that, we wouldn’t have any money for this crisis that we’re currently in. So we believe at the Roundtable that, it’s really important to incentivize and encourage giving, and not put into place restrictions that would limit American’s generosity.
Beverly:
And talking about something that may limit how people give is a topic that’s come up more and more often. And that is the ability to keep your giving private. So donor privacy. Why do you find that it is essential to preserve donor privacy? Why is that so important? When critics of this say giving should be transparent, we should be able to see who’s giving to what, especially if there is a tax break for it.
Elise:
Well, the idea that, because there’s a tax break associated with the charitable dollar, that those are suddenly public it’s just not a good premise. We believe people have the right to give to the causes they care about, and they have the right to do it privately if they so choose. That is something that… Money is speech, and that is protected by the first amendment. So we feel very strongly in protecting that right. A lot of people for religious reasons, choose to… They’re giving anonymously because it’s considered the highest form of giving, as anonymous giving. And so we support that.
We also support people who simply don’t want to disclose the things that they are personally passionate about because they’re in the public eye. And then there are also people who deal with threats of violence because they care about a particular cause. And at the Roundtable, we would protect anyone’s right to give privately if they choose, no matter if we agreed or not with the causes of their support. So it doesn’t matter what cause it is, as long as it is a charitable organization. We believe that people have the right to give privately and anonymously.
Beverly:
So anonymous giving is that… Are there sincere challenges to that, where you could see that anonymity is no longer associated with private giving? Is that something that you think either on a state, by state basis, state laws, or on federal law could be changed in the near future if we don’t fight against it?
Elise:
There are absolutely threats to this. There have been cases that have come up over time, that have set precedent, that donor privacy is protected and should be protected. But still, we see the threat arise again and again at the state level. And the Roundtable is working very hard to counter those proposals that are coming up in States. And also at the federal level, we do have concerns that there will be calls for just more disclosure and more transparency. I am in full support of the government being transparent, but I am not in support of private citizens having to share their personal giving with the rest of society. That’s not how transparency works.
Beverly:
And I think as we’re in a more polarized environment where we see people who are afraid to say who they plan to vote for. They don’t want to speak up and share elements about their beliefs. Have you found that there has been, with this polarization, an attempt by people to withdraw in giving, because they’re fearful that if it’s a conservative cause, maybe they’re going to be bashed? Or because they see the attacks that the right may have against the left and vice versa, they just don’t want to wait into anything that could be seen as, contentious or confrontational. Have you seen giving patterns change because of the fear of not remaining anonymous?
Elise:
Well, actually that is one of the appeals of donor-advised funds, is that they allow people to put their money into this charitable account and then give to causes they care about, and without disclosing who they are. So I don’t think that there has been a trend downward out of fear of that. But if there are restrictions placed on a donor-advised funds that require more disclosure, I think we could see that happen. And I know there are threats of that at both the federal and the state level that we are concerned about. So we want to prevent that from happening. I don’t think it’s happening now because people trust that they can give anonymously through their donor-advised funds. Which is one of the huge appeals about it.
Beverly:
A final, topic that I wanted to get into, is not actually a topic that I normally would think of applies to the philanthropic sector. And that is something that’s grown in popularity when it comes to the business sector and government agencies. And that is our mandates, these diversity and inclusion mandates that have been a huge topic in 2020. How has this also seeped into the philanthropic sector? And what is your take on this push for these diversity and inclusion mandates for leadership and of organizations?
Elise:
Well, I think this last year has been really… It’s allowed for some really good dialogue about important issues like racism. And that dialogue is really important. I think we can all agree that racism is wrong and that we need to eliminate barriers for people from all backgrounds to succeed. We believe in that firmly at the Roundtable. When it comes to mandates, we have seen in the philanthropic world, a push for, having more representation from people of different, either from black people, women, and people from different communities. I think we all want to create diverse and inclusive environments, but there is a push to kind of put people into certain boxes around that. I think we are concerned that, putting people in these specific buckets like the gender bucket, the people of the color bucket, the age bucket is not the best way to create the diverse and inclusive environments that we’re seeking to create.
And we also are worried that it’s not actually addressing the core of the issue that we want to address. So improving educational opportunities for communities that are struggling, getting them access to the best education they can have to succeed. And, talking about things like criminal justice reform. How can we eliminate barriers there and make things more equal in that regard? So we’re seeing a push for this sort of one size fits all solution of putting people on boards that are diverse. And a real pressure and push around that. And we’re not thinking that’s actually going to solve the issue. So we would like to create more dialogue around that, and see if we can actually make headway, on the significant issues that do exist in our society and find a really solid task forward that will make a true difference, rather than just ending at representation on boards and stuff.
Beverly:
Because at the end of the day, it is about the course they want to support. And I want to tie that up with one final question for you. I know that the Philanthropy Roundtable helps people think about where they should give, what causes match up with them. If somebody is listening to this and they say, I want to do more, I want to help. For example, you use that one anecdote of helping businesses who are struggling. What is it that the Philanthropy Roundtable does? And is this a place where people can go to if they want to think about the causes they care about and want to learn how they can give to those?
Elise:
Yes, the Philanthropy Roundtable is, a network of donors who shares values. Our donors want to advance liberty, opportunity, and personal responsibility, and we want to find ways to do that in the most effective way possible. So we help our donors to locate the causes that are advancing those values, and in the best way possible, and to be most effective in their giving. So, we try to encourage people to look for things that they’re passionate about. Things that they care deeply about and that also have good outcomes or are actually making a difference and moving the needle on the issue that they care about. So it’s about results and outcomes, not about sort of what just feels best. So we are a resource for our network of donors and philanthropists all across the spectrum and welcome people to come and learn about causes that are of interest in education, health, and policy issues, a variety of ways of giving in the philanthropic world.
Beverly:
Well, we so appreciate the work that you’re doing at the Philanthropy Roundtable and also defending the right of free speech through giving. So thank you so much for all your work and also for joining us on, She Thinks today.
Elise:
Thank you so much for having me again.
Beverly:
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