Episodes
Tuesday Nov 28, 2023
#GivingTuesday (News) & What happens when Nonprofit boards fail?
Tuesday Nov 28, 2023
Tuesday Nov 28, 2023
The Associated Press reports on the increasing importance of GivingTuesday for nonprofits, especially amid concerns of declining donations. GivingTuesday, which began as a hashtag in 2012, has grown into a significant fundraising event where many nonprofits leverage matching campaigns to maximize donations. The end of the year traditionally sees a surge in charitable giving. The AP notes that organizations like Fidelity Charitable are optimistic about end-of-year donations, contrasting with the National Council of Nonprofits' concerns over falling support and a general decline in the number of Americans donating. Whole Whale, the publisher of this newsletter, predicts approximately $3.45 Billion in predicted donation revenue for nonprofits this Giving Tuesday, based on an analysis of historical trends and movements in search volume. In addition to traditional fundraising vehicles, observers are acutely paying attention to trends in alternate forms of giving, especially crypto donations, like those fueled by platforms such as Whole Whale partner The Giving Block.
Warren Buffett donates $870 million to charities ahead of Thanksgiving | CNN
Billionaire Warren Buffett has donated approximately $870 million in Berkshire Hathaway shares to four family-run foundations, continuing his annual philanthropic tradition. The donation, echoing last year's gesture, is part of his long-standing commitment against dynastic wealth and in support of societal benefits through capitalism. Despite being 93, Buffett remains at the helm of his company, which is thriving with robust earnings and a record cash reserve.
Who Are the New OpenAI Board Members and What's Changed?
OpenAI recently underwent significant changes in its board composition following a tumultuous period marked by the firing and subsequent rehiring of CEO Sam Altman. This upheaval led to the dismissal of three board members: Ilya Sutskever, Tasha McCauley, and Helen Toner, with the latter two being the only women on the board. Their departure was a consequence of a failed board coup against Altman. In their place, Bret Taylor and Larry Summers have been appointed. This shift represents a notable change in the board's gender diversity and reflects the broader dynamics at play within the company and its controlling interests.
One Love Foundation: Major donor sues citing founder's opposition to minority, LGBTQ outreach
The Baltimore Banner
A major donor is suing the One Love Foundation, claiming that the Baltimore-based nonprofit, which has educated 2 million young people about relationship violence, has breached an agreement and is in “disarray” due to the actions of one of its founders.
The lawsuit asserts that Sharon Love, who created One Love after her daughter, University of Virginia senior Yeardley Love, was killed by an ex-boyfriend in 2010, fought against One Love’s “outreach to LGBTQ and minority communities” and threatened to fire board members who disagreed with her, prompting nearly all board members and the organization’s CEO to resign earlier this year.
Tuesday Nov 21, 2023
Nonprofit Board Fires OpenAI CEO (news)
Tuesday Nov 21, 2023
Tuesday Nov 21, 2023
Nonprofit Board Fires Sam Altman At OpenAI In High-Stakes Drama
So, what happens when a nonprofit board meets with a Silicon Valley CEO?
The two factions of OpenAI clashed like the resistance fighting the empire in a scene from Star Wars but with fewer special effects. Here’s what we think is happening based on reports…
OpenAI, initially a non-profit dedicated to beneficial AI development, has undergone a significant transformation via high-speed drama this weekend. After former CEO Sam Altman was ousted, executive Greg Brockman decided to quit OpenAI, with Twitch's ex-CEO Emmett Shear stepping in. Microsoft's Satya Nadella announced Altman and Brockman, along with others, would join Microsoft. This move represents a substantial gain for Microsoft, which already holds a perpetual license to OpenAI's intellectual property, and now acquires key talent without financial or antitrust risks. This shift signals a loss for OpenAI, heavily reliant on Microsoft for funding and resources. OpenAI's flagship product, ChatGPT may face uncertainties given these developments.
Some observers critique the evolution of OpenAI's non-profit model, originally aimed at advancing AI for humanity's benefit without financial constraints. However, financial pressures led to the creation of OpenAI Global, LLC, with Microsoft as a minority owner, altering OpenAI's commitment to openness and non-profit principles. The release of ChatGPT, while a massive success, exacerbated internal ideological rifts within OpenAI that contributed to Altman's ouster. Microsoft, heavily invested in OpenAI technology, finds itself in a more advantageous position, now directly acquiring the talent and technology it was partnered with. Analysts suggest this to mean a consolidation of AI advancements under large, well-funded corporations, with OpenAI's original non-profit vision and structure becoming increasingly untenable.
So for this episode the score is: nonprofit ethos 1, Silicon Valley CEO 0
- but this is definitely not the end of this saga, expect many sequels and prequels.
The new French AI research lab Kyutai, backed by a budget of nearly €300 million (around $330 million), is set to make significant strides in artificial intelligence. Spearheaded by French billionaire Xavier Niel and supported by figures like Rodolphe Saadé and Eric Schmidt, Kyutai aims to be a nonprofit hub for artificial general intelligence research, collaborating with researchers and PhD students on open-source projects. The lab boasts considerable compute power, including a thousand Nvidia H100 GPUs, and is led by a team of seasoned AI experts. It distinguishes itself by encouraging researchers to publish their work, a practice increasingly rare in big tech firms. This initiative aligns with France's broader strategy on AI, as articulated by President Emmanuel Macron, focusing on open source development as a national asset and advocating for regulations that ensure safety and innovation in AI applications.
Rosalynn Carter, mental health activist, humanitarian and former first lady, dies at 96 | CNN
Rosalynn Carter, who passed away at 96, was a trailblazing First Lady, redefining the role by actively championing mental health reform and advocating for human rights. Her tireless work set a new precedent for presidential spouses, emphasizing social impact and public service. Rosalynn's enduring legacy is highlighted by her efforts to destigmatize mental health issues and her pivotal role in The Carter Center's humanitarian initiatives. Her commitment to these causes and her influence as First Lady have left a lasting mark on social advocacy and the evolving role of presidential spouses in public service.
Donor-Advised Fund Report: Grants to Charities Increase 9%, Hitting a New Record High | nonprofit
The 2023 Donor-Advised Fund (DAF) Report reveals a robust increase in DAF philanthropy in the United States, with grants to charities growing by 9% to a record $52.16 billion. Despite challenges in the broader economy, donors consistently increased their DAF contributions for the 13th consecutive year. The report notes a shift to what might be a 'new normal' in DAF growth rates, post-COVID-19. Key findings include a 9% increase in contributions to DAF accounts, totaling $85.53 billion, and a 2.9% rise in the number of DAF accounts to 1,948,545. The average DAF account size decreased slightly, and the grant payout rate dipped to 22.5%. Eileen Heisman, CEO of National Philanthropic Trust, highlights the growing variety of giving tools and the critical role DAFs play in easy, streamlined philanthropy, expecting this trend to continue benefiting charities globally
Wednesday Nov 15, 2023
5 Biggest Mistakes Made in Strategic Planning | GraceSocialSector.com
Wednesday Nov 15, 2023
Wednesday Nov 15, 2023
Part of the Nonprofit.ist nonprofit podcast network.
We interviewed Carol Hamilton from Gracesocialsector.com about how nonprofit strategic planning could be improved. Not involving enough people. Often only senior leadership and the board do the planning, thinking they alone have the vision. But all levels of staff should participate to gain buy-in. Surprisingly, there is often 80% agreement on goals across roles. Failing to operationalize the plan. A common mistake is creating an overly complex, long plan that gathers dust. The plan should be simple, focused, and integrated into existing processes. Define who will do what by when for the first year. Crafting an unrealistic plan. While visionary, the plan must connect to current organizational capacity. If the goals are too aspirational without a path to achieve them, they won't be implemented. Having too many goals. Limit the plan to 3-5 key goals maximum. No organization can successfully focus on more than that at once. Not designating responsibilities and timelines. For each goal, define concrete action steps and who will complete them by when. Don't worry about years 2-5. Just focus on year one.
Tuesday Nov 14, 2023
70% of People Distrust this... (news)
Tuesday Nov 14, 2023
Tuesday Nov 14, 2023
Pew Research Center Finds Broad Data Privacy Concerns & Distrust
The Pew Research Center's study on American perspectives towards data privacy highlights growing concerns and confusion about personal data usage. Most Americans are uneasy about how their information is handled by companies and the government, with a significant 67% admitting they understand little about what is done with their personal data. This concern extends to social media, where 77% of Americans distrust social media CEOs to responsibly manage user privacy.
70% of Americans also distrust companies to make responsible use of AI in their products. The study underscores the national relevance of data privacy, influenced by ongoing debates over regulating AI and protecting online data, emphasizing its impact on everyday life through choices in passwords, privacy policies, and personal data security measures.
Regulator vows crackdown on ‘squeamish’ charities rejecting donations
| the Guardian
Orlando Fraser, head of England's Charity Commission, criticizes charities for rejecting donations on moral grounds, urging them to consider the impact on service provision to beneficiaries. He emphasizes that decisions to refuse funds should not be based on trustees' personal biases but on substantial justifications, amidst growing concerns about accepting unethical donations. This stance has sparked debate about the balance between ethical funding and operational needs, with the Commission updating guidelines on lawful and reputational considerations in donation acceptance.
The Ukraine Airbnb initiative and the weaknesses of ‘disintermediated’ giving | Blog - Alliance magazine
The Ukraine Airbnb initiative, a response to the Russian invasion of Ukraine, highlights the complexities of modern philanthropy. As an alternative to traditional donations to nonprofits, which raised £420 million through the Disasters Emergency Committee, this initiative involved booking but not occupying Airbnb rooms in Ukraine. This approach directed £15 million directly to property owners in just one week. Celebrated as a democratization of philanthropy, it allowed donors to bypass charities, though it faced criticism for potentially excluding the most needy and exacerbating economic issues like inflation. This form of *disintermediated giving raises important questions about efficiency, direct impact, and the ethical complexities of modern charitable efforts.
Announcing Kiva’s Bold New Impact Strategy: The Nonprofit Microfinance Pioneer Shares its Refined Approach — And Unveils the Process Behind its Development | NextBillion
Kiva, a pioneer in nonprofit microfinance, has announced a new impact strategy, marking a significant evolution in its approach. Since its inception in 2005 as one of the world's first crowdfunding platforms, Kiva has enabled over 2.2 million lenders to fund over $2 billion in loans to more than 5 million entrepreneurs globally. Key to its strategy is the formation of deep, values-aligned partnerships with nearly 600 organizations in 95 countries, allowing for a significant local impact on a global scale. Innovations such as social-underwriting in the U.S., partnerships with community organizations, and the establishment of Kiva Capital for larger loans have been instrumental in extending support to underserved entrepreneurs, including refugees.
Tuesday Nov 07, 2023
$2B FINE for #rollingcoal & Mr. Beast Builds Wells (news)
Tuesday Nov 07, 2023
Tuesday Nov 07, 2023
Nonprofitnewsfeed.com
DOJ Going After Ebay For “Coal Rolling” Devices
The Department of Justice has filed a complaint against Ebay alleging that the company let over 343,000 after-market “coal rolling” devices be purchased on the platform, according DOJ paperwork filed in Brooklyn federal court. CBS News reports that Ebay claims the complaint by the DOJ “unprecedented” and that the ecommerce giant regularly works with law enforcement to remove millions of illegal products. The DOJ’s action comes with environmental concerns about the environmental impacts of “coal rolling” and other devices (which allow the bypass of vehicles’ exhaust systems to spew smoke) shows a willingness to address environmental concerns at the source — including pursuing large companies with meaningfully large fines.
Summary
MrBeast: American YouTuber builds 100 wells in Africa, attracting praise – and some criticism | CNN
Philanthropist and YouTuber MrBeast has garnered both acclaim and criticism for his initiative to build 100 wells in Africa, aiming to provide clean drinking water to half a million people. His acts have highlighted the inaction of local governments, especially in Kenya, drawing contrasting sentiments from activists who praise the aid while others criticize the perpetuation of stereotypes. Beyond water, MrBeast extended his generosity by donating school supplies, building infrastructure, and enhancing education and healthcare access in African communities. While some accuse him of exploiting his philanthropic work for views, MrBeast remains committed to using his platform for social good and dedication to humanitarian efforts.
NYC’s “Right to Shelter” Under Threat Amid Migrant Influx | Non Profit News
New York City's decades-old "Right to Shelter" policy, which provides temporary shelter to anyone without housing, is under threat as Mayor Eric Adams seeks to modify it to address migrant influx. Advocates fiercely defend the unique policy as a moral stance against homeless encampments and say needs of migrants and the homeless shouldn't be pitted against each other. The outcome of this conflict over Right to Shelter in NYC has national implications as a bellwether for progressive homeless policies.
Engage For Good Acquired by Corporate Social Impact Expert Muneer Panjwani | csrwire.com
Expert in corporate-nonprofit partnerships Muneer Panjwani has acquired Engage for Good, a leading company that empowers corporate and nonprofit professionals to create mutually beneficial social impact partnerships, with support from Berkshire Bank. Panjwani plans to build on Engage for Good's 22 years of bringing together corporations and nonprofits, expand its educational offerings and events, and provide more strategic guidance on social impact campaigns. The acquisition comes as businesses and nonprofits are the most trusted institutions and consumers increasingly support brands that demonstrate social commitment. Founder David Hessekiel will stay on as an advisor through May 2024 and continue to own the Peer-to-Peer Professional Forum.
Tuesday Oct 31, 2023
Only 15% of Nonprofit Employees Took Advantage of this (news)
Tuesday Oct 31, 2023
Tuesday Oct 31, 2023
PSLF Program Eliminated $51 Billion In Student Debt For Public & NPO
As reported by Philanthropy.com, the Public Service Loan Forgiveness (PSLF) program, initiated in 2007, was designed to alleviate student debts for those dedicating a decade to nonprofits or government roles. However, the program was largely unknown and challenging to secure until recent rule changes and promotion. The Biden administration's reforms in October 2021 breathed new life into the program, erasing an astounding $51 billion in student debt for over 700,000 public service workers. Yet, only about 15% of the 9 million eligible workers have applied. Despite earlier bureaucratic challenges and a high rejection rate, recent changes like loan consolidation and credit for past payments have transformed the lives of many by freeing them from significant student debt. As the cost of higher education skyrockets, nonprofit organizations should be actively promoting this program both to its employees as well as future employees.
Summary
Nonprofit Funded by Crypto Billionaire McCaleb Buys $500 Million in Nvidia Chips for AI Computing | Reuters
A new nonprofit called Voltage Park, funded by cryptocurrency billionaire Jed McCaleb, has purchased $500 million worth of advanced AI chips from Nvidia. Voltage Park plans to set up AI computing clusters in multiple data centers and lease capacity to companies for artificial intelligence projects. This comes as demand for AI hardware has surged following the release of chatbot ChatGPT, with chip shortages plaguing businesses. By providing low-cost access to powerful Nvidia H100 chips, Voltage Park aims to make AI computing more accessible. The tax-exempt nonprofit is a subsidiary of McCaleb's Navigation Fund, meaning any profits will be donated to the philanthropic fund.
St. Louis nonprofit director stole millions from child nutrition program, feds say | STLtoday.com
The former head of a St. Louis nonprofit has been charged with fraudulently spending $20 million in federal child nutrition funds on luxury homes and goods. Connie Bobo of New Heights Community Resource Center allegedly falsified records to net $11 million in bogus meal reimbursements. If convicted on the wire fraud, identity theft and obstruction charges, Bobo faces up to 22 years in prison and forfeiture of illicit purchases. The indictment follows reporting on questionable practices by Missouri nonprofits administering pandemic aid, as authorities crack down on abuse of the loosened oversight.
Nature Conservancy Bets on Startups to Boost Climate Mission and Returns |FastCompany
The Nature Conservancy is now investing part of its $3 billion endowment directly into climate tech startups, leveraging its scientific expertise to support companies like Overstory and Yard Stick. The nonprofit sees an opportunity to back high-impact startups aligned with its conservation mission that also have potential for strong financial returns. Direct investing represents a shift beyond TNC's past practice of relying on outside managers and index funds for its endowment. The approach shows how nonprofits with sizable endowments could strategically deploy capital to advance their mission as well as financial goals.
Tuesday Oct 24, 2023
(news) Can a 100-year-old NGO Go Digital & What is Dickipedia?
Tuesday Oct 24, 2023
Tuesday Oct 24, 2023
Goodwill is trying to grow its online sales in order to generate more revenue to fund its job training and employment assistance programs. The nonprofit is facing increasing competition from for-profit resale sites like ThredUp and Poshmark. Goodwill recently launched GoodwillFinds, an ecommerce site where 14 Goodwill locations sell donated items, but it has challenges in competing with other sites. Successfully growing online sales is crucial for Goodwill to continue its charitable mission of helping provide jobs for those in need.
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Blackbaud Pays $49.5M Over 2020 Data Breach | AP News
The software company Blackbaud will pay $49.5 million to settle a data breach case brought by 49 states, in which sensitive donor information was exposed in 2020. The breach contained health data, Social Security numbers, and financial information from Blackbaud's nonprofit, university, and hospital clients. Blackbaud previously settled separate charges with the SEC for misleading investors about the breach. The large settlement demonstrates the serious legal risks nonprofits face regarding donor data security and notification procedures.
Sham Nonprofits Ripped Off Kids' Meal Funds in Shocking Pandemic Scheme | Twin Cities Business
Minnesota's top attorney dropped a bombshell this week, filing 23 lawsuits against fraudulent nonprofits accused of stealing from a federal program meant to feed needy children during the pandemic. An explosive investigation found these shady groups falsely claimed to open locations serving meals, when in reality, they had zero legitimate nonprofit activities. The attorney general is seeking to permanently dissolve the fake nonprofits in the wake of the jaw-dropping $250 million child nutrition fraud scandal involving a different Minnesota charity last year. This stunning development proves oversight of nonprofit pandemic aid remains critical to protect taxpayers and vulnerable youth.
Elon Does Childish Elon Thing | The Hill
Billionaire Elon Musk offered Wikipedia $1 billion to change its name to "Dickipedia" for one year minimum, posting the proposal after criticizing the free online encyclopedia's fundraising appeals. Musk's offer came with the condition that Wikipedia cannot change the name back for at least a year, adding he is "not a fool." Claiming the site does nothing - Wikipedia responded that it handles “over 25B page views per month and over 44M page edits a month, requiring substantial operating costs.”
Friday Oct 20, 2023
Why Fiscal Sponsorships are the smartest way to start a nopnrofit
Friday Oct 20, 2023
Friday Oct 20, 2023
Interview with Andrew Schulman of Schulman Consulting.
Here are some key points about fiscal sponsorships from the conversation:
- A fiscal sponsorship allows a new project or group to operate under the legal and tax-exempt status of an existing 501(c)(3) nonprofit organization. This avoids having to incorporate separately and apply for 501(c)(3) status.
- The fiscal sponsor provides back office services like accounting, HR, legal compliance, and manages fundraising so the sponsored group can focus on programs.
- Sponsors typically charge an admin fee of 8-12% of funds raised. Some charge a % of expenses instead. This covers their management costs.
- Good for getting started quickly, building a track record, and testing an idea before launching a standalone nonprofit. Provides credibility.
- Downsides are less autonomy, fewer funding sources, can’t get some nonprofit discounts, and sponsors add rules/oversight.
- Suggested to use a fiscal sponsor if raising over $50k in first year or don’t have nonprofit management experience.
- Most sponsors want to help projects succeed and transition to independence. Process takes 3-6 months after getting 501(c)(3) status.
- Fiscal sponsorships should be the default first step before creating a new 501(c)(3) since it simplifies startup.
In summary, fiscal sponsorships allow faster startup in exchange for some autonomy but are a great way to incubate and test a new social impact idea.
Tuesday Oct 17, 2023
Why Gov Shutdowns Hurt Nonprofits (news)
Tuesday Oct 17, 2023
Tuesday Oct 17, 2023
Ouster of GOP Speaker Hampers Ability of Congress To Function Amid Looming Shutdown
The ouster of House GOP Speaker Kevin McCarthy nearly two weeks ago continues to hamper the ability of the legislative branch to advance policy, even as the spectre of a government shutdown continues to loom large. Nonprofits like the National Low Income Housing Coalition say that the shutdown (which would go into effect on November 17th) as well as the current political standstill and dysfunction threaten what they percieve as must-pass legislation related to HUD and housing assistance, which advocates say need to increase every year as the cost of living goes up. The volatility of the status of the government (a shutdown would pause non-essential government services) has put nonprofits on edge. Food banks can expect increased demand as hundreds of thousands of government workers and contractors go without pay, and programs like WIC and SNAP are at operational risk in long shutdowns. The Chronicle of Philanthropy also cites domestic violence shelters as also vulnerable to shutdowns because many rely heavily on government grants.
Friday Oct 13, 2023
How GPT Ruins the RFP Process & How to Solve
Friday Oct 13, 2023
Friday Oct 13, 2023
[00:00:00] . Following on with our favorite guest of the moment right now, Heather Yandow, of course, founder of nonprofit.ist, nonprofit ist, and consultant at third Space. We are talking about whether or not, because this has been coming up a lot, will G p t destroy RFPs? And I know you are the, like captain of the team, of folks that think RFCs request for conversations are superior and many ways to RFPs request for proposals.
[00:00:54] So we're gonna throw a lot of acronyms out here. Where and how do you think our conversation since the last time we had it with regard to R F P? Versus R F C is in the landscape now of G P T. So I think it's just gotten more complicated, more muddy, and I lean even more towards requests for conversations now.
[00:01:17] You know, one of the things that I have already started seeing is chat, G P t AI generated cover letters. So I just hired for a position. Hmm. And one of the cover letters was clearly generated by ai. It used exactly the same language, and it didn't mention that the person who was applying had a personal connection to me.
[00:01:39] So to those, those were red flags. Didn't even have to use any tool, just read it and thought, this is not right. So we're already starting to see it. I suspect that if I was a nonprofit putting out a, a request for proposals, I would've already gotten some that were AI generated. So it's becoming, RFPs in my opinion, are becoming increasingly useless, increasingly challenging when the goal is to actually find the right consultant to help you with your challenge.
[00:02:10] For sure. I think, you know, we're using G P T synonymously with any generative AI tool that will create an output based on an input. I think there are ways of designing this, but I think there are tiers, right? Mm-hmm. I think, frankly, legally speaking, if you have government funded projects you have to solicit for, and with RFPs, request for proposals is just part of the game.
[00:02:35] You need three competitive bids. And that's just how the government cookie crumbles. Yep. There's a lot of white space below that though, however, where, you know, I see small projects, we'll call them projects under 60 K or even under 30 K, where if you put out an R F P, like is disturbingly easy to generate a proposal?
[00:02:56] Like I have a proposal generator for for whole whale. I don't use it because it's just not how we go about it. But let's say I was a do anything now shop. Literally, I could just go through, copy a proposal, put it in, see if I get it, and then go forward. And I think there's real risk of having massive you know, signal to noise issues in that process.
[00:03:20] Does, how does that land for you? Yeah, I absolutely think so. I mean, you know, putting together proposals. Is super time consuming especially for small shops. You know, there are two and a half of us, so to muster the resources it takes to put together a really good proposal is a heavy lift, and I can absolutely see why using chat G P T or something else, like it would be really attractive, right?
[00:03:48] It's certainly going to reduce the amount of time I'm gonna have to spend writing. It can be a, a good jumping off point. I think that what we're likely to see is that those. Organizations who can take advantage of it. So particularly those organizations, those nonprofit consulting firms who have people who write proposals are gonna probably take advantage of it.
[00:04:11] And George, they might be, you know, doing it with all of the respect and within the bounds of good AI usage, which I know you think and talk a lot. But I do think it's gonna create more proposals and not necessarily more useful proposals for nonprofits to review.
[00:04:28] Yeah, I think all roads lead to conversations, though. They do. I think at some point, you know, you'll vet, you'll go through, there's just a lot more processing that ends up happening on the nonprofit side, albeit ironically, you could also use AI for synthesizing that. And we end up back full circle to just have the conversation front.
[00:04:47] Have, have the, you're gonna have to have it anyway. So being like our, you know, like our request for information or intent could lead to a conversation round and. That would maybe filter out a lot of this because the number of proposals you are going to get is simply gonna increase over this threshold because it's so easy.
[00:05:06] Literally. Yeah. If you are saying like, oh, he's talking about some advanced technical thing. Here's what I want you to do. If you're a consultant right now or if you're a nonprofit, I just want you to understand how simple this is. You just go on ideally to check GT four or Anthropic. If you have an account there, what you're gonna do is prime the conversation with who you are, what you do, and the role of that ai.
[00:05:27] The next thing you're gonna do is here is a sample of the structure of my proposals. Here's a couple case studies now. That you're clear, please write a and respond to the following context of this new proposal. And you're gonna toss that in and you're gonna end up with something that's disturbingly good as a first draft.
[00:05:47] And frankly, if you're lazy, just send it as mm-hmm. Whatever your first, your, your final draft. Uh, I do, as you mentioned, talk a lot about keeping human in the loop as soon as you send it out to the world, if it's. If it is all within your control, please, please make it a first not final draft policy of using AI and keep humans in the loop for now when exposing LLMs publicly to individuals especially if you are in I'd say crisis or trauma adjacent conversation.
[00:06:19] For, for folks, what is L L M? Large language model. I feel like this is just alphabet soup. Uhhuh, you're a generative AI thingy. It like there's nuance, there's fine. It's what we're talking about. So going back to that, what you're gonna do is create that. Now, if you're on the nonprofit side, here's how you go about it.
[00:06:37] You say you are a selection criteria. AI that evaluates proposals for our organization. Here is the proposal we created. Now, evaluate this and break out based on price, competency likelihood to deliver on time elements, and shove it into the spreadsheet for me. And ta-da. You're just gonna go back to having.
[00:07:00] A conversation. A conversation. Absolutely. Absolutely. 'cause it's, it's not buying the best digital camera, right? It's not a spreadsheet able thing. Finding a consultant, most of the time you actually wanna know if you're gonna be able to work with this person. You wanna have an understanding of who they are, of what their personality is, of what their style is, and.
[00:07:19] Certainly we talk about that in proposals but it comes back to having a conversation and really seeing where that conversation goes. And that's something AI at least currently can't actually do for you. No. And the truth is, you're gonna be working with a person, not an ai. That's right. Uh, one of the things I do and have always loved about non-profit is, is that you can just go shopping for folks and just say, Hey, I wanna have a quick conversation.
[00:07:44] One click sends them a message so that you're like, all right, look. I have this fundraising campaign. I could put it on our feet. Lemme just talk to a few folks and see That's right. What they think about the project. What am I missing in here and how do I go about that? Yeah. Yeah, absolutely. And that's, that's, we designed it that way on purpose, right?
[00:08:02] It's people's pictures there, not their logos. We know that you're connecting with a person and we wanna make that as frictionless as possible. Call 'em, email 'em, send 'em a message through the site, any way you wanna get in touch with them. And then yeah, have that conversation. What does this look like?
[00:08:20] What do you think? What are the questions you have for me? What would the timeline be for this? Yeah. And I, I do think there's some risk as well, which is why I want more foundations to do this. I'm to, to pay attention and to communicate to grantees about the, the risks here, because when you go out there with.
[00:08:40] An R F P, you can get a lot of inbound and potentially unethical inbound where folks can just sort of fake it till they make it, but they're using language borrowed mm-hmm. Stolen from other groups or agencies, and they can mimic that style and confidence. And suddenly, you know, you're, you're selecting a an inferior option or someone who has no clue what they're doing, but the jargon lines up just fine.
[00:09:04] So you're like, oh yeah. And. Oh, they're half the price isn't that nice? Like Uhhuh. Uhhuh as many times as you need to. You get what you pay for. Yeah. You'll learn that it's an immutable truth. It is. And you know, obviously having conversations is gonna help break through that. And then always checking references.
[00:09:22] Who else have you done similar work with? Can I talk to them? Let's have a conversation with those folks about what the experience was like working with these people. Yeah. I don't know if there's any other points in here. I have already just broken the entire system by literally explaining how to build a R F P generator and then R F P proposal evaluator, so that you just have this little disturbing, dystopian mm-hmm.
[00:09:47] Cyclical behavior. But you know, to come back on, you know, where this sort of started requests for proposals, RFPs are so anachronistic like they date back because in the industry of the 1880s, they needed to put this stuff in papers. So they needed to put it in a paper to be like, here you go. All come, come find my, you know, my road construction project or train my railroad construction project, Uhhuh.
[00:10:13] And it wasn't until the 1960s, thereabouts, where the government really adopted this as a standard practice for large purchasing projects. Yes. Government size stuff. Yes. Not. Tens of thousands of dollars, right? Yes. You're like, oh, it's so much money. It's not, it was created when the government's about to spend, you know, you know, X millions, hundreds of millions of dollars.
[00:10:37] That's what it was designed for. The government, as you remind, like I I said, is like, is requirement when you give to a nonprofit and use government dollars, like, oh, no, no, you gotta do that. R F P process. Mm-hmm. But understand that's where that comes from. That's where that comes from. And there's, there's a belief that that's the right way to do it.
[00:10:57] That's the professional way to do it. That's the equitable way to do it. And I would argue for all of those, that's, that is not necessarily true. It is not always the best way. It is always not always the most professional way, and it's certainly not the most equitable way to find someone to work with.
[00:11:15] Yeah. I don't know. Maybe to play the other, other side here potentially. One of the things that, when you use the word equitable, in my mind it, it means you have to have the capacity and resources and capability to go about the very lengthy process of creating a proposal. Yeah. And that process. And there's many folks in the nonprofits network that like definitely bristle.
[00:11:38] They don't even like go after. Yeah. They're like, no, no, no. I won't even bother. Which means you've already precluded a lot of qualified candidates from applying. That said, I just explained how you could create a proposal builder so that you could get to the conversation. May, maybe the, maybe there's a bright side there.
[00:12:01] Maybe there's a bright side there. I, you know, I'm one of those folks who I, I, I don't do cold proposals. And that doesn't mean necessarily that I have worked with a nonprofit before, but I need to at least be able to have a conversation. Very rarely. Does a two or four page R f P have all the information I need to know even what to pitch as a first option for how I might be able to support this organization.
[00:12:26] I often have lots of questions. I wanna know a little bit more about the history. I wanna know about why now. I want, you know, I wanna understand why the budget is where it is and what the board's buy-in is things that people don't often write down in their request for proposals. So even that first conversation again, Warming it up a little bit, having a sense of who's really there, what the real challenges are is, is super helpful.
[00:12:52] I will say for Whole Whale that we do respond to RFPs, but only if there was a conversation first. Yep. There you go. Like everything starts with a conversation just to make sure we're aligned. Yeah. Are we in the ballpark? Is our type of service, meet your type of need and. We do churn out a lot of proposals.
[00:13:10] However, they're much more like project plans, like mm-hmm. We literally take that we and move that into a contract parts of it and say, this is what we're gonna execute on. 'cause that's what we talked about. And you know exactly what you get. So you're already doing pragmatic work now? Yes. We, uh, we do lose a number of proposals.
[00:13:29] But that's, you know, that's part of the game. Yeah. And I think of them less as proposals, maybe more as like project plans to make it. More tangible. Mm-hmm. Mm-hmm. Yeah, that makes sense. That makes sense. We often put together proposals that are those project plans, and then the very, if we get the work, the very first piece of that is let's actually dig into this project plan and figure out if it makes sense.
[00:13:51] We were basing this on an R f P in a 20 minute conversation. Right. Like, we don't, we, we need some more information. Well, I'm excited to put this out there. I think the more we talk about it, it's just like, it's like this quiet secret and you're like, oh. Mm-hmm. Like nobody knows that a hundred million plus people are using G P T tools to like write all manner of thing.
[00:14:11] Like we know Yes. We just aren't talking about it. Yes, yes. You know, it's like if the, if the teacher in the classroom accidentally left the entire answer key on the chalkboard while you took the test and everyone was like, Is anyone gonna tell the teacher that it's there? Like, can we just start having this conversation?
[00:14:29] We know it's happening, we know it's going on. And by the way, if you're doing it lazily, if you're doing it in a poor way if you're ever curious, you can go to tools like G P T Zero. Put in that text and you're gonna get a what's called perplexity and burness score, which is, uh, was this probably created by, uh, an AI or not a generative ai or not.
[00:14:52] Uh, and so if you are bad at prompting, if you're doing this in a lazy way, uh, it's very much detectable. Mm-hmm. But you don't realize that. But people that know, know, mm-hmm. And I, I, you know, The plus side is there's lots of ways that these tools can help us as nonprofit consultants. You're actually doing a webinar on that very soon.
[00:15:12] There's lots of ways that these tools can help nonprofit leaders. So there is a positive side. Just, yeah, be careful with the RFPs. Agree to agree. All right, Heather, all, thanks again. Thank you. And folks can find you at nonprofit, do IST nonprofits. That's correct. And thanks for the community you're building.
[00:15:30] Thanks, George.