Interview with Josh Brooks, Enduring Charity Foundation

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1 Interview with Josh Brooks, Enduring Charity Foundation Kirsten: Thank you, Josh, for joining me today. How are you doing? Josh: I'm well. How are you, Kirsten? Kirsten: Thanks for joining me today. Josh Brooks is a new comer to the non-profit world. He saw a need and started his own non-profit called the Enduring Charity Foundation. Would you mind sharing with us, Josh, really quickly what Enduring Charity does? Josh: Absolutely. So the Enduring Charity foundation helps individuals for profit businesses and other non-profit organization establish an enduring source of financial support for those charities that they care about and the way that we do that, it's really a three-step process. The interested party that wants to create an endowment picks a name, they name the endowment, they select the supported charities and typically for non-profit organizations, they select themselves as the supported charity. And then we go about endowing the initial contribution of money or non-monetary property and then a fund raising campaign and then we restrict that money, invest it and the proceeds of that money goes to the support those selected charities year in and year out forever. Kirsten: That sounds like a pretty comprehensive service. Josh: Yeah. I think it's a good solution for individuals who want to be philanthropic and get out of the hand-to-mouth donations cycle. It's a good way for those for-profit businesses that aren't big enough to have their own foundations to participate in some sort of comprehensive giving program. It's also a way for our brothers and sisters in nonprofit organizations to enjoy all the benefits of an endowment without having all the administrative requirements as well. Kirsten: Thanks, Josh. Now, you can read his full bio on the podcast page at But here are just a few of the highlights that Josh shared with me. Josh is an active duty aviation officer in the US army. He has more than 16 years of service. He has a deep sense of gratitude for all the blessings in his life and this combined with his desire to get involved in philanthropy lead him to found the Enduring Charity Foundation. Josh intends to apply those values that he learned in the army which are duty, integrity and selfless service in leading the Enduring Charity Foundation. So, we'll go ahead and just jump into the questions.

2 How did you first recognize that there is a need for this type of service and what led you to move forward and start this group? That must have been a pretty big jump for you. Josh: It was and it wasn't. I have been looking for a way to identify what I'm going to do for my second career. So, I've got about 3-6 years left in the army and I'm thinking about what the second half of my work life looks like. One of the things that I'm very proud of is my military service. The key word there is service. So, I thought to myself how can I create or design a career, a second career that was service-oriented and what can I do now to get the ball rolling so that when I step out of the military in 3-6 years, I'm ready to make that transition? At the same time I was sort of going through this cycle of thinking and development, I was exposed at George's State University to the creation of the endowment for our army ROTC program. So, I got to see how the nuts and bolts of an endowment works. And then I talked with my father and we turned my mother's memorial scholarship foundation, I'm sorry, my mother's memorial scholarship fund, which was a hand-tomouth account; money in and money out. We turned that into an endowment. I had all of these experience of endowment and philanthropies during in the base. I'm thinking about what service-oriented career I can have after life in the military and I put two plus two together and the idea was, I need to be a philanthropist. Then we went forward and talked about we should start an endowment. But ultimately we arrived on the idea of starting a foundation that would consist of the portfolio of endowments because the members of the board as we started the foundation, myself, Julie, Wayne, and Dave, we had different charitable interests. So, we each needed our own endowment. But also creating a portfolio of endowments allows others, other individuals, other for-profit businesses, and other non-profit organizations to participate. So, that's kind of how we got there. Kirsten: I love how you say you want to be a philanthropist because I think some people are really intimidated by that term. They think you have to have a lot of money or they feel like it has to be something more than what they are. Really truly, anybody can be a philanthropist. Do you find yourself running into people who think about that term differently or are people fairly open to it? Josh: Well, I think what you said there some definite stereotypes for particular connotations associated with that word. In my opinion, the word philanthropist describes a state of mind. It doesn't matter how much money you have. What matters is you're a person that wants to be of service, you're a person that's giving. I also think philanthropists are a little savvy. They have a little bit of business acumen. There in is my critic of the current way that charity works; we give a dollar, the dollar gets spent this year, next year they need another dollar. The philanthropists understands that enduring profit [inaudible] enduring source of support and therefore they gravitate toward the endowment style of philanthropy. So, in some ways, I'm on the the mission to convert donors into philanthropists.

3 Kirsten: Now in starting an organization, I know we have some listeners who might just be starting their organization really early on and I'm sure they're curious how you got your first gains. So how did you identify the first people who are going to establish an endowment with Enduring charity foundation? Josh: Well, the first group of people that we went to was the board. Julie and I established an endowment. Dave and Debbie [inaudible] established an endowment and then Wayne and his wife, Lanie established an endowment. So, the board put their money where their mouth is. I also had a couple of close associates who were wanting to be philanthropic and I described this vision to them and they were interested as well. One was an individual who wanted to participate and then the other one was a small business woman who was looking for a way to achieve a tax break and know by the way if she can help somebody through charity, that would be cool too. The first circle of our network was really where we went first to establish this initial gains. Kirsten: Where are you reaching out to now? Now that you've gone through to the inner circle of the people who know you, this folks. What's your next step? Josh: Our next step, obviously we're still working in the inner circle for recurring contributions which now that we've got initial endowments started, one of the very important things that we have to do with those is good stewardship to continue to grow them. The next step that we've taken is reaching out to the community at large through LinkedIn, through blogging, through Facebook and some of the other social media outlets to create awareness. So now, we're actually being contacted by individuals outside of our own network who have come cross the website and asked questions or people who have made connections with us on LinkedIn and they said, you know what, this is something we need to talk about or maybe we can see if we can work together. So we really kind of went from first circle to everybody. I'm not sure that's the logic that I would recommend that your audience follow, Kirsten, but it works for us. Kirsten: One thing that you said that you recognized the importance of good stewardship. I think that's something that would.. What does that mean to you? What types of things do you do to ensure that you're practicing good stewardship? Josh: Well, I forget what book did I read it in but they said the ten touches a year. So we make a phone call to each of our endowment founders quarterly and we send happy holiday cards, we sent Christmas cards, we sent 4th of July cards which no one else does. So, that kind of gets a little bit extra attention. We'll probably send Veterans Day cards out because a large part of our group so far is military folks. We are doing a semiannual newsletter and then we've got the end of the year campaign which includes the thank you phone call, a thank you letter, an annual report on how the foundation is performing, and then of course toward the end of the holiday season, the annual solicitation. Last thing, we also do an annual gift. You know, paper weight or a key chain or something like that. So, if you're and endowment founder, you'll hear from the

4 Enduring Charity Foundation at least ten times a year. If you are a donor, you get touched by the Enduring Charity Foundation probably right at ten times a year. Kirsten: That is fabulous and it's great that you've thought that through so early in the life cycle of your organization since right now you're what, a year old? Josh: Just over a year. Kirsten: Congratulations on meeting that first big milestone. Josh: Thank you. Kirsten: So, what do you see as your greatest success for this first year that you've just finished? Josh: The great success for the first year is that we sort of achieved and then went beyond our initial goals. The way that I describe the first year to people is it happened in thirds. The first third was establishing the organization, establishing the foundation, giving our organization incorporated in Georgia as a non-profit. Getting the bank accounts of, reading all of the different regulations and laws that you need to be aware of. The second third was getting the tax exempt status. That's 501C3 from the IRS which typically takes a lot longer, but it took us a short four months to do from the time we started the application to the time the IRS granted us 501C3 status. And then finally the last third was we got 7 endowments established with 25,000 dollars endowed. So, our first year, we got established, we obtained 501C3 status, and we got 25,000 dollar endowed which will generate a thousand dollars or so of support to those designated charities year in and year out forever. So, a pretty darn good first year. Kirsten: Right. You've been moving gain busters and this is while you've been working full time with your day job, right? Josh: Right. Kirsten: Yeah. So you've been busy? Josh: This is how I know I found the right thing for my second career is because my eyes open before the alarm clock goes off. It's a joy to work on the foundation in the evenings, in the early mornings and on the weekends. It's not a burden. So, I know that I've found what I was looking for. Kirsten: That's great. For this first twelve months as well, have you had any big learning opportunities, something that you might do differently next time or recommend that others do differently?

5 Josh: Absolutely. There's always going to be an element of discovered learning and that's a good thing most of the time. The challenge occurs when you come across somebody who maybe is unscrupulous or perhaps even worse is interested more in collecting a fee than they are helping the organization move forward. We encountered a person that advertised themselves as a non-profit consultant/cpa and wanted to start just 200 dollars an hour to help us put together our 501C3 application. After the first few engagements, I realized that either I really knew a lot, which isn't the case, or this person was taking their time to pad their hours to increase their fee. We have to kind of work through that. Then the following, doubt and anxiety and fear that maybe we were in over our head. I would just encourage our audience to stay motivated, stay positive especially in the face of those setbacks but also just take a real good look at who you're working with and ask them to show you recent successes they've had and ask them to provide you references and just do some real good diligence if you're going to work with people. Kirsten: Absolutely. Any specific questions that you think might be good to ask in addition to those recent successes and looking for recommendations? Josh: I would ask when was the last time you successfully obtained approval for one of your clients from the IRS for 501(c)3? The gentleman that we finally ended up going with, when I got him on the phone and spoke with him, he said "I've done more than 1500 of these" and then after he spent some time asking me about what I wanted to do and what we thought we were trying to do, he said, "yup that sounds good, it sounds like your priorities are in the right place. It sounds like a pretty simple design. I'm confident that I can help you get this through the IRS. I've done 1500 applications. I have 100% success rate. It will cost this much. It will not be a dime more. It will take this long as long as you get the paper work back in a timely manner from the time we start to the time start to the time we submitted. After that, it's up to the IRS." I mean, he was that certain. I think if people ask, if people come back saying, well it depends or oh it varies for everybody. Yeah, but you should be able to give me an average. You should be able to get me some firm idea of how much it's going to cost and how long it's going to take or you haven't done it enough to maybe be the person that I want to work with. Kirsten: Right. So, it sounds like for you it was really good to go with someone who is an expert in the field who knew what he was doing, was able to guide you through it as opposed to using a volunteer who may not be familiar with the non-profit process. You think it was worth it to pay for it? Josh: I do. A lot of people ask me this question. We are running on a shoe string budget. Julie and I have loaned the foundation. We've loaned them 10,000 dollars now. The gentleman we worked with, who we worked with wanted 2,500 dollars. That's 25% of our startup capital but looking back, I would spend that money all over again. We found the right person. It was the perfect remedy to the concern, fear and anxiety that we had. I endorse this gentleman and I recommend him to people all the time.

6 Kirsten: You can feel free to share his name if you like and then I can include him in the show next as well. Josh: Yep, his name is David Marmon. He's out in New Mexico. His website is 501c3go.com. Just the nicest guy and is fast, is very responsive. The questionnaire that he has is easy to use. He will get on the phone and talk with you and if your priorities aren't in the right place, that is if you want to use the 501(c)3 structure more for personal gain than you do its intended purpose, he will probably politely bail out. But if you are truly trying to do good in the world, he'll pick you up wherever you are in the process. If you are in the middle of negotiating with the IRS, if you're right in the beginning of the 501(c)3 process, if you haven't even incorporated yet, he can help you with wherever you want to start. Kirsten: Thank you. And Josh, do you have any closing words? Maybe some words of encouragement for people who are early on in this process? Josh: Absolutely. I mean, the fact that we can choose our own careers in this great country, those people who feel called to go into philanthropy are special kind of person. Sometimes it's tough, sometimes it's challenging but there's a network out there. There's a network of philanthropic individuals from LinkedIn, from the different blog sites, folks can reach out to me. I'm available at josh@enduringcharity.org. When you hit an obstacle, when you come up on a struggle, you're not the first person to have encountered that challenge. Someone else has had that challenge and has overcome it. So, all you have to do is find that person and engage in professional development and fellowship with them. Not only do you get a solution to your problem, but you move your organization forward and you probably end up making a new friend and contact. Kirsten: I guess that's how we met too, isn't it, Josh, through LinkedIn? Josh: I think it was either LinkedIn or Twitter. Just admiring each other's work on social media led to a telephone conversation. I read that chapter that you wrote in the fund raising handbook and just the respect has continued to grow and now we're talking on podcasts. I think this is how it's supposed to work. Kirsten: Absolutely, meeting people and connecting, supporting and encouraging each other. So thank you very much, Josh for joining me today. Thanks to all the listeners for being here and for your commitment to improving the community. Together, we can definitely make the world a better place. Josh: Absolutely. Thank you, Kirsten. I'm really grateful for the opportunity.

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