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>>Commentator: I'm gonna introduce our speaker here in a minute, but first I want to talk
about the unusual story about now I met Steve. Steve and I were sitting next to each other
on a flight - was it to San Francisco or from -
>>Steve Cardamone: To San Francisco.
>>Commentator: to San Francisco and it turned up that we have, we were discussing – we
saw each other's Ipods and had the same outstanding taste in music. Arguably.
[laughter]
And we got to talking and we talked about what each other did, and about what Steve
did with the Foundation. And I'm not gonna give the whole thing away, but it was really
fascinating, and we wound up keeping in touch and for two years running now we've had students
out from the Foundation here appear to Google. A small group of under twenty -- 15 to 20
students; give them a tour around and then we spend a couple of hours, actually, sitting
up in Gold Coast talking about - with a group of our Googlers - talking about what it is
that makes them excited about working here; what it is that makes them happy with their
lives and with their jobs, and that sort of thing.
And it's, I think the students enjoy it immensely, but all the Googlers who participated have
come out of it with quite a bit as well. It's a really, it's really been a great experience.
And so, with that Steve said: "Gosh. What can I, what can I possibly do to repay you?"
And after he turned down my cash request -
[laughter]
he offered to come up here, actually, and give a talk to us about giving and about,
and about what that means. And again, I'm not gonna give the whole talk away, but I'm
really excited as somebody who does believe a lot in giving to charities of your time
and money, to hear what he has to say. And with that I will turn it over to Steve.
So thanks a lot, Steve. Thanks for coming.
>>Steve Cardamone: Thank you. I think I'm happy that you said "great music" because
I think the last time we got together you said "cheesy music."
[laughter]
And I didn't think that was fair. I thought the '80's were an awesome decade and parachute
pants are making their way back.
Thank you so much for having me here today. I just want you to know I'm not selling anything.
This is not a Tony Robbins seminar; there are no tapes at the back of the room. So when
I gush about Google, the reason I do that is, is because the affection - I guess is
the best way I can put it - that Google has shown our Foundation and the kids that come
here -really, to be quite honest with you, is pretty incredible.
And you should hear the stories. And they tell Fitz. It's not while the kids are here
because you have them trapped and I'll get into our Foundation in a minute. But you have
them here and they're in front of all of these executives and they're very intimidated, but
the second they get out of here and get on the bus, it's non-stop chatter about how cool
it was that we were here. And it changes their lives.
So, anyway, that's when you see all the great Google stuff, it's general admiration.
Just to give you a quick idea as to who I am - I am the Executive Director of The Give
Something Back Foundation and the President of the Heartland Cares Foundation.
And I'm here with Bob Tucker, who I work with, who does many, many things at the office.
But Bob comes from a university background. So a lot of what we do - and I'll talk about
it in a second - has to deal with sending kids to college. So Bob is kind of the resident
expert dealing with the -- at the universities.
And we are very, very blessed to Stephen Kahnert here, as well. And I love the title Generosity
Coach. But that really is kind of a catchall title for all kinds of things that Stephen's
done in his life, and he's at the point right now where people call him for ideas and bounce
ideas off of him. Actually, he's kind of a walking Google, which is a high compliment.
Now this a very serious question. I take this very seriously because this is gonna tell
me everything I need to know about you.
[laughter]
You're stuck on a desert island. Now let's assume there's power, okay, but only not for
anything else but for your CD player. You have five albums that you can choose, and
I want you to think about them or jot them down. If I'm stuck on a desert island, these
are mine. So this tells you pretty much everything you need to know about me. Okay, we have the
Beatles Revolver, Dean Martin, The Messiah, Dave Brubeck, and of course REO Speedway the
hits.
So, this is serious though. I'm not gonna answer any questions until you tell me your
albums.
[pause]
One of the reasons why we're here as Fitz said was giving back to Google. I believe
very, very firmly in the fact that we put good stuff into the universe, good stuff comes
back. But my whole goal is to enrich you in some way today. And I don't care how that
is. So if I can give you something or give Google something back, based on all the things
that you've given us, then it will be time well spent.
The three points that we're going to cover today is: illuminating key questions - what
are the key things I should be asking before I give my
dollar? Two, discussing giving trends. Just some industry stuff that is kind of – of
interest if you're into giving. And then developing giving strategy.
This all sounds complicated, long and boring, but believe me we'll get through it very quickly
and it is not that difficult.
First of all, The Give Something Back Foundation, just so you know kind of what it is I do
- we were kind of informally started in 2003 when a gentleman and his wife, Bob and Jill
Carr, decided to give a scholarship to graduating seniors from Lockport Township High School.
They gave a hundred thousand dollars to five students to go to any college they wanted
in the country based on some parameters, which were: character, income and GPA.
So he decided, Bob and Jill both decided to formalize this in 2006 and that's when The
Give Something Back Foundation was started.
Now, what we basically do is we - our core is taking kids with those same qualities,
but picking them earlier. So we pick them in sixth grade, and we've actually developed
a robust, if you want to call it, curriculum. So we put them through etiquette training;
we visit Google; we do things that they normally would have no opportunity to do otherwise.
And then hopefully by the time they graduate high school, they're more prepared for life
and then we pay for their college experience. So that's the core of what we do.
I don't if anybody has a computer here, but we also have a Website.
[laughter]
And one of the things that we did recently as a side project - if anybody's ever been
in Lockport, Illinois, we built a park called Lincoln Landing. Very, very quickly it is
one of the most significant pieces of Lincoln geography anywhere, but is happens to be in
Lockport, Illinois. So we actually built a park, contiguous to a very, very good restaurant
along the I & M Canal in Lockport, Illinois. So that was actually our project and it was
typical Bob and Jill.
I often asked myself: "Why are we doing this?" But really the answer was because it's the
right thing to do. And that's kind of the, the nexus of how the foundation was started
and how we run our daily lives.
[pause]
Now, to talk about some questions. These are questions that as you're kind of thinking
about giving - some key points I think that everybody should really walk through is: Why
do I give? What gives me passion? To whom do I give? Will my gift make a difference?
How do I give?
And really one of the things that the key components to this is really kind of the how.
And we're gonna talk a little bit more about that than anything. And we'll see in a moment.
But the why is where we start. This is my personal reason for giving. This is where
you really need to understand. This is my personal giving philosophy. And what's your
giving style? And really what a lot of people don't really think about is: "What is my budget?"
Okay. So you start in January. How many in this room have ever sat down and said: "I
need to go over my philanthropical budget for the year."
[some of audience raises their hands]
Wow! Very impressive! It doesn't happen often. Most folks kind of give as they go. And it
can be kind of counterproductive and it's counter-intuitive. But again, that's one of
the things that we need to think about.
So find your passion. Well, what gives me passion - how do I define it? I define it
as that thing that when you're sitting at your desk and you have one of those wandering
moments, or if you wake up in the middle of night, or if you're watching a TV show -
this is that thing in your stomach that motivates me to not just look at it and feel bad; but
this is the thing that when I think about it at night, I can't sleep. This is the issue
that I actually talk about at cocktail parties, trying not to bore everybody.
But I call it then - the next step is like that Cardamone hypothesis which is: there's
a direct correlation between the amount of passion you have for something, and then that
directly correlates to giving of time and of your treasure.
Because quite frankly, I think if you're giving time and treasure, that's kind of the ultimate.
That's the peak; that's the pinnacle of how strongly you feel about something. 'Cause
it's easy to - I don't want to say this - like it's any less - but it's easy to write
a check. It's really difficult to do both. So anyway, that's kind of my hypothesis.
And to whom do I give? Who can facilitate my happiness? I think that's a key question.
I'm gonna tell you a little story here. I had that moment - I'm sure everybody has this
moment somewhere, no matter what it is you have that connection - but when I was in school,
in college, I had a professor whom I really liked; an accounting professor. And we were
in class one day and the next day he wasn't there. He missed a week. Then he was there.
Then he missed a week. So he came back and I've always been kind of an outgoing kind
of person, so I walked up to the front of the lecture hall before class and I said:
"Dr. Carroll I haven't seen you for awhile. Where have you been?" He said: "Well, my daughter
has cancer."
[pause]
"I'm terribly sorry to hear that." He said: "Well we're putting a benefit together because
she had a very" - at that point a very rare form called neuroblastoma which is one of
the -- it's all evil, but it is one of the most evil forms of cancer because it attacks
really kids. It attacks their brain.
So, I'm gonna try to keep this all together. Because I can remember this like yesterday,
because I said: "Okay. I'll do anything I can to help." And he said: "Well, we're getting
some items for a raffle; we're gonna have a dinner dance; and we're gonna have a fund
raiser." So I said: "I'd love to help."
So I had at that point connections with the Chicago Blackhawks. I interned there and I
got some hockey sticks and I was doing my thing and I was helping Dr. Carroll. Life
is good. I'm doin' my job. But I was really doin' it for him. I really had no connection
with the cause so to speak. Until he asked me one day: "Would you mind droppin' it off
at my house?" "Sure. Not a problem."
So I had all the stuff and loaded up in my 1984 Cutlass with the velour seats.
[laughter]
And pulled up to the house and as soon as I got there he was at the door, and he said:
"Could you please put a mask on?" He said: "Because we can't have any germs in the house."
So my heart started thumping. I'd never been around anybody chronically ill, let alone
a child. And I didn't even think that she would be there. So we walked in the house
and there was Michelle sitting on the couch. She was totally bald. She had a mask on and
she was holding her little blankie.
I said at that moment: "I get this. I get this." This became very real. There's a three
year old little girl, who all this garbage that I had to sell, I mean big deal. Now I
became a warrior, because I needed to do whatever I can do for this kid. I didn't even know
her. But I know I couldn't get within 50 feet of her, because I would have made her sick.
[pause]
So I think when you answer that question - I think it becomes a matter of this is very,
very personal for me. And again, that gives passion. I'm sorry it's a side note.
I think the next question is: Will my gift make a difference? This is my hard earned
dollar. Okay. And I think a lot of you here - this is gonna be a little bit of, a little
bit of a review - because you're already thinking about your dollars and how they're gonna work
throughout the year.
But talk to the Director. Is the organization viable?
We're gonna talk a little bit about trends in the near future. Part of the trend is 501(c)(3)'s
are being treated just like businesses. Don't invest in a loser. If you have an organization
that is not spending money wisely and the money's not going where it's supposed to go,
you don't give money because you feel bad for them or you think it's a good idea. You
have to really, take the next step.
And how do I give? This is the big one. Time or treasure? Time is huge. That's the intangible.
And I broke this down into ways that made sense to me which were: professional skills;
amateur skills; or grunt skills.
Well, professional means I'm a marketing guy. I can walk into my local Red Cross office
and create a marketing plan for them. I'm directly using my skills that I work, use
on my job. Part of what I think is the benefit of that is - it's not a problem here, and
again I'm not saying this because I have so much admiration for you, but I do - but at
some companies you don't have an outlet. They don't let you try new things and creating
using your skills at your job. Well, this is a great way to use your skills in different,
innovative, interesting ways because you're donating your time. So that's a direct way.
The next way is the amateur skills. How many of us in this room - it's probably everybody
- has something we're passionate about other than work?
[laughter]
We all do, right? I love to garden, believe it or not. Probably 'cause
the plants can't talk back. It's a one-sided conversation.
But that's another way. You can be a professional. The same marketing professional can say: "You
know what, my local church doesn't need a marketing plan, but you know what, the outside
looks terrible. So I'll plant some flowers." So you're using your skills that way.
Then you have your grunt skills. Which is: Do they need to stuff envelopes? Believe it
or not, it can be just as important as the professional skills.
And by the way, one of the things I failed to mention - I don't have it on the, on this
presentation but if anybody here sits on a board, or has any board-specific questions
to deal with 501(c)(3)'s or board's in general - we have a wealth of board knowledge in
the room here. And I'd be more than happy to talk about that because a lot of this is
gonna be very applicable.
[pause]
And then the how do I give? Well, let's flex our proverbial muscles for a cause. That's,
that's again that's the professional in us. As my professional skills, I can show the
world or show this organization, using my professional skills, the things that I can
do to make them better, or we can sharpen our prodigious skills in other areas. That
gives you a chance to practice. So as an amateur you can practice your skill at a charity level.
And again, if you're doing grunt work, you basically get the feeling of doing great work.
So, again, just three different ways of thinking about it.
Now let's think about treasure. A lot of people say: "Well, do I give gifts of money or time?"
Well, it's kind of both in some aspects. Because are you going to do a one-time gift? Are we
thinking ahead? And I think part of it comes down to: What gets me more excited? Do I feel
better knowing I'm supporting an organization via check or when I show up and actually get
my hands dirty serving food?
Now keep in mind, this is not to make anybody feel guilty. I think we live in a culture
where it's very common to make all of us feel very guilty. The same old: "If I'm not at
the soup kitchen on Thanksgiving, then I'm a horrible person." I don't think that's the
case. I think it's whatever gets you jazzed. What gets you excited? If its saving lemurs
in Madagascar, chances are you're not going to get there to do it, but you can certainly
write a check. But it's all about where your personal passion lies.
And yes, just so you know that charity does exist.
[laughter]
I want to talk a little bit about the psychology of giving. And this is kind of the stuff that
blows people away. And the first thing is, everyone thinks charities. It has to be the
reason do it is for the tax deduction. Well, yeah, there is a reason for that. But ninety
percent of the folks can't take because they don't do their taxes, they don't take the
deduction: a) they don't make enough money and b) they don't, help me -
>>Voice in audience: Itemize.
>>Steve Cardamone: Itemize. Their tax deduction. So it's a fallacy to say that people give
just for tax reasons. That's garbage. Blow that out the window.
And the second thing is, fifteen percent of all the monies, fifteen percent, in the most
generous nation in the world, come from corporations and from foundations.
[pause]
So, that means the other eighty-five percent is coming from people like us. Writing checks;
being passionate. So again, it's very important to understand that.
So we'll talk a little bit just about the psychology which is fear or guilt. This is
like point one. Why do we give? "Oh, God, here comes John. His kid plays T-ball. I have
to give him ten dollars or he's gonna hound me."
This is like, again, this is the gift that works. I mean pressure works, but is it gonna
- does it get you jazzed? Do you get excited? When was the last time you gave a gift of
like buying M&M's? And it was lasting. You felt great about it.
[laughter]
I can't remember one either. But that's what this is. Psychologically this is not the way
to go about long-term good relationships.
Necessity. We talked about this a little bit, which is: "Boy this is a great organization
it just cannot get their act together, but I'm gonna write them a check anyway, because
I think what they do is great." Esh. That really doesn't inspire long-term giving either.
Self-interest. One of my personal favorites. The Cardamone Law School. Where I get to go
to a fancy dinner and they're gonna put my name in a book. So for that night, I'm an
all-star because my name's in a book. But at a cocktail party, have you ever whipped
out a book and said: "Hey, just by the way, in 1987, I gave a hundred to my high school."
[laughter]
"I rock."
[laughter]
Not so much.
[pause]
Passion. What gets us excited? This is my cause. This is the cause that if you insult
this cause, you insult me. Colin Powell, who I - his biography was great and I really love
the guy - but he once said: "Never hold a position so close that if it goes down, you
go down with it."
[pause]
Okay, that's kind of squishy to me. And I just don't buy that. I say to myself: "There
are a few things that if you insult that, you're insulting me."
So again, this is the thing, that passionate thing that you know that once you figure out
what that is, nobody can take it away from you; you can talk about it passionately; and
at some point you wouldn't be afraid to raise money for it. That dirty word. But, yeah,
it's true.
So after all, what is philanthropy? Does anybody know the definition of philanthropy?
[pause]
Not you.
Who said it?
>>Voice from audience: Love of people.
>>Steve Cardamone: Love of people. That's what it is. It's a love of people and that's
what this whole thing is about. Who do you love?
Long term donors give because they love you; they trust you; and they're good stewards.
Okay.
I give to organizations that I know will do well with my money and that's kind of what
it's all about. It's finding - it's like anything else - you have to find out what your outlet
is for that big ball of wonderfulness you call your wallet. Who's gonna take care of
it like I would?
So, I was talking about some, some new trends in the industry. And I'm gonna be done here
in five minutes.
Trends in the industry are these active vacations. If I'm really passionate about building stuff,
it's not just about Habitat for Humanity anymore. It's about going to Peru, living with a family,
and rebuilding a church in the village. Call them active vacations. These are becoming
very, very, very popular.
As people become more affluent, and their causes can become a little bit more, shall
we say, pinpointed; not as broad. These are things that people are doing.
So, it's a very big trend in the industry.
The next is the donor advised funds versus foundations. I'm not gonna get into this too
much. But just know this - because there's a point here. Foundations in the past have
been abusive, because they've put their sister on the board; their brother on the board;
they're paying them salaries and two percent of their money is going out, ninety eight
percent is staying in our pockets. I'm making those numbers up.
But the long and short of it is, through abuses foundations - and we'll talk about it with
Sarbanes-Oxley - they have to run more like a business and there's many, many more restrictions
and they're expensive to start and they're expensive to maintain.
So the donor advised funds, which is like this great alternative - which is kind of
like if you go to Vanguard's - a mutual fund of goodness. Does anybody here know what these
are? Okay, good, because I don't wanna retread old territory.
But to make a long story short, if I have a cause where I wanna save mountain lands
specifically at the reserve in Kilimanjaro - I can call Vanguard and chances are they
will have - and I don't work for Vanguard, I'm just throwing it out there 'cause they're
the biggest - but they have a fund that I can donate my dollars to that will specifically
attack that problem.
Why is that good? Because I'm pooling my money with other folks. And the second thing is,
I'm not starting my own foundation to make it happen. What's the downside of it, though?
I'm sorry. And there's better tax deductions if you do it that way versus a foundation
'cause they cut back on that too.
But what's the downside? They're called donor advised funds. Which means at the end of the
day, they could donate your money to help homeless in Chicago. So they really legally
can do whatever they want with the money. Does it happen? No, not really. But just know
that it's an option out there. Foundations give you maximum flexibility.
[pause]
And non-profits like we just talked about, Sarbanes-Oxley. At this point because of all
the abuses, they have to now go along with the standard accounting principles that the
regular companies are now. Which I think makes it even that much more important for folks
to look at not-for-profits like a business. Because they have to run like a business.
So when you're gonna invest your funds, make sure you do it with a good, I hate to call
it company, but with a good 501(c)(3).
Here's a good question. It's kind of an uncomfortable question, but I'm gonna ask it anyway because
I'm into uncomfortableness, if that's a word. Many funders hold back because they say: "I
don't trust you enough so you can only take my money if you build sidewalks at the quad
that I used to walk through when I was in college, and you can only do x,y,z and if
you do anything else, I'm taking my money back."
That's we call restricted giving. Okay. It makes us feel good because we know our money's
going for something very specific. However, it would be like your boss saying: "I need
you to get this project done, but here's exactly how you're gonna do it, because I can't trust
you as far as I can throw you." Okay.
What you want is, if you really trust, love, and your organization are good stewards, trust
them enough to give them your cash. Okay. And if you do the research ahead of time and
you feel comfortable enough, that's the level you need to get to.
So restricted gifts are kind of difficult from a 501(c)(3) perspective
because you're adding strings to it.
[pause]
Now, this is like the personal plan. This took me all of five minutes to put together,
because this is the common sense Steve way of doing it. Now is this the way that you're
gonna - you can look on line and find plans put toget - no. This is my suggestion on how
I do it.
First thing, my first question is: What gets me jazzed? We talked about it. What am I excited
about? Conceptually these are my core values. What do I want to support? Now think about
this generally.
I dig animals. Let's say that's, that's where I'm at right now in my life. I love animals.
Which is not true, I'm just using that. But you say to yourself: "This is where I wanna
be. So I need to find a cause that allows me to me to take care of animals."
The second question is: What organization is an outlet? Alright. Well, you really got
to think about this because I know I love animals, but is PETA or the Humane Society
gonna best reflect what my core values are?
So even within the portion that you're excited about, what organization is gonna best reflect
my personal mission?
And then again, if the organization doesn't exist: can I find a fund that allows me that
flexibility to do it?
How am I comfortable giving?
Now. Now is easy. It's time and treasure. I can donate time stuffin' envelopes or I
can write a check and I'm done. It's over with.
Or do we look at the future? Everybody in this room can make a long term real, long
term estate gift if they, if they so choose. A hundred thousand dollar piece of property
and a home? You can very easily donate. As a matter of fact, it was Loyola that just
accepted a fifty million dollar gift - estate gift - yesterday or the day before. Okay.
Most gifts, though, are not that sexy. They're a hundred and fifty thousand dollars.
As a matter of fact, there's a little house in Lockford that just got donated to the historical
society that is worth x amount of dollars, but I assure you it's not two hundred thousand.
Okay? But these are long term gifts that you can make. Can you think about it right now?
Absolutely, you should.
Four, what's my budget relative to my income? What can I give? But the real question is:
What do I want to give? Do I tithe or do I not? What am I comfortable with?
So again, when you're - that budgetary process - you also have to think about your time.
How many of us - I know I have - it's so easy to say: "Alright Steve, if you just help us,
it's only five times a year. If you can just come in and help us out five times a year."
And then every other month it's like: "Didn't I just do this last week?"
You have to think about budgeting your time, as well. It's very important because when
you make a commitment of 12 times a year it doesn't sound like a lot, but that's, obviously
that's once a month and that actually is a rather large time commitment.
The measure of success. Did my organization spend wisely? Okay, in other words, there's
an organization that I know of, which will remain nameless, that was helping out 30 people.
They had 32 staff members. Awesome. Awesome work if you can get it, I guess.
I mean, are they spending my money within budget? Not so much.
Are they within mission? So in other words, not only are they spending that money, but
are they doing with it the things they said they were gonna do with it?
Did they communicate with you? In other words, did I get, as a donor, communicated with to
show me where my dollars went? Don't let that fool you. Any organization can do that. It's
very simple. Even though organizations that don't have infrastructure. A digital picture
and an email. Let me know what you're doing.
Of course, did they, do they know how to right the ship in turbulent times? I mean, I'm tired
of using the example, but the economy, let's face it, there's a lot of things that are
goin' on right now that have never happened.
Has the organization that I'm passionate about - have they adjusted their tack? So that's
a good question.
And then do they appreciate you? It's very simple. Do they appreciate your dollar?
[pause]
George Thorogood once said: "Who do you love?" And I love it; because that's what this whole
thing is about today. If nothing else, it's about: What do I love? What am I passionate
about? And like Google, okay, how many people in this room that I've met - all these great
folks that have shared their time and talent with, with the kids that we've brought in
- how many of them went to school because they knew they were gonna work in the computer
field?
[some audience members raise hands]
Right? No, it's not about that. It's about what gets me jazzed. Once you answer that
question, the smart folks figure it out. And that's what I think makes Google successful.
The smart folks with passion figure it out. So anyway --
My last question is: was this Googlelicious?