Episode 97: Dianne Chipps Bailey

Written By lori kranczer

Join Lori for an inspiring conversation with Dianne Bailey, National Philanthropic Executive at Bank of America, as they explore the transformative power of philanthropy and the importance of generational giving. Her experiences offer a fresh perspective on the role of generosity in shaping a better future! Stay tuned!

Here are the things to expect in this episode:

  • How did Dianne’s parents inspire her philanthropic journey?

  • The impact of unrestricted grants.

  • How the rising generation (millennials and Gen Z) approaches philanthropy differently.

  • The importance of endowments, volunteer engagement, and strategies for inspiring future generations in philanthropy.

  • And much more!

 

 

 
 
 

Episode Transcript

00:08

You're listening to the positive impact philanthropy podcast, where we share the journeys of everyday philanthropists as they incorporate philanthropy into their lives. Philanthropy is a personal journey, and through the stories we will share here. We hope that it sparks something in you, how you can make your own Phil topic impact in the world. I'm your host. Lori kranzer, attorney, philanthropic advisor and legacy giving strategist. Together, we're going to explore what it looks like to be an everyday philanthropist and make a positive impact in the world. Before we get started, make sure to subscribe to the podcast so you never miss a new episode post on Wednesdays. Now today, I'm really excited to welcome back Diane Bailey. Diane has already been interviewed on our podcast. It was one of the found favorites, and really also one of my favorites is she talked about her inspiration to give back that came from her mother. And it's a very personal interview, and we were so excited to welcome her back to this one today. So Diane Valley is national philanthropic strategy executive at the Bank of America, private bank. Welcome Diane.

 

01:11

Thank you, Lori, it's such a treat to you back with you again. I'm grateful for the invitation.

 

01:16

Yeah, well, we're just so excited. So So Diane, for those who didn't listen to our your previous episode. Why don't you share for our audience what you do?

 

01:27

I have the great privilege of leading a best in class team of philanthropic strategists and advisors for Bank of America. We work with our foundation, Lori. I don't know if you saw but we were recently named endowment outsource Chief Investment Office assets. So we are so grateful for the growth that we've seen in our business, and a big part of it is this amazing group of highly tenured, experienced and just really kind and fun professionals that I have on my team. So I did see that?

 

02:00

So Diane, can you talk a bit more about the scope of the work that you're doing?

 

02:08

So we work both with grant makers as well as the nonprofit organizations that they support. And our grant makers are tremendously varied. We work with families, corporations, community foundations, all of these health conversion and legacy foundations that are popping up all over the country, and a myriad of what I would describe as celebrity foundations, whether they're athletes or actors or musicians, that people that are leveraging their fame to create really beautiful impact in our world. But again, our passion also is for the nonprofits that are out there on the front lines, doing the work and our clients in the operating charities. Base is also very, very diverse, arts, education, health, human service, the environment, religious organizations are so, so, so fortunate to be at the intersection of the donors and doers, and having the opportunity to catalyze their success together is

 

03:11

amazing. And when you're working with nonprofits and also the grant makers, what is the type of work that you're doing with them? Are you say, with the grant makers, are you helping them benchmark other nonprofits to understand where they should be giving, or what kind of impact that they're giving can have in the world?

 

03:32

We start from the very beginning, which is their values. I'm really helping them to discern and then be able to articulate what matters most to them, because when you root your giving and your values, you'll be sustained in that work. We then fine tune a mission statement to help them achieve and really narrow their strategy. Tons of work around fiduciary governance, compliance, but the real beauty is in the grant making itself, designing a process for them to receive, and that applications certainly leaning into principle the trust based philanthropy, making that process at least burdensome possible, and then really encouraging them to give those high impact unrestricted grants, really partnering with those nonprofits that they can entrust with their assets to achieve the mission that they chart together. Of course, we do impact evaluation on the back end, making sure that both the grant makers and the nonprofits are learning together to find what really is going to work to create the change that they're seeking in the world, and then finally, looking to new generations of leaders succession planning, we see so much hope and possibility with the millennials and Gen Z for what they're going to do in their own giving. So I

 

04:51

want to talk about generational giving, but before we even get into that, you said something that just made me perk up a little bit, because it's such an important thing for the nonprofits to understand well, as you say, the nonprofits understand this at the grant makers rooms and how important it is to receive these larger, unrestricted grants. Can you talk about how that's important for the nonprofit sector?

 

05:17

The MacKenzie Scott effect has changed everything in philanthropy. Lori, as you know, I've been in this space for a really, really long time, more decades than I prefer to count. And when I first started in this space, grant makers, in all sincerity, would wring their hands and watch their proverbial pearls and wonder out loud whether these nonprofits have the institutional capacity to receive these large gifts and whether their contribution might tip them into private foundation status. And what we've learned is that yes, indeed, MacKenzie Scott has proven that nonprofits can receive and steward substantial, transformational gifts responsibly. They do not act like lottery winners who are more likely to go bankrupt than the general population. The wonderful research that the Center for effective philanthropy has done really bears this out. You know, the first thing that these MacKenzie Scott grantees did across the board is pay their people appropriately the fragility that happens in nonprofits that are imposing a scarcity mindset on their executives and their employees in all ranks of the organization, it's so damaging to the sector, so really leaning into appropriate compensation was the first and most important thing, and then they did what they did best, really leveraging the resources to propel those programs that were creating the impact that had them earn Mackenzie Scott's trust, and then finally creating long term investment accounts to really support the sustainability over years and decades to come. So the overall framework was responsible, and it proves that, in fact, these organizations can be trusted with these beautiful acts of generosity.

 

07:21

I absolutely agree. And I also love that you brought up the long term financial stability of an organization, because I think when some organizations receive some sort of windfall, whether it's an under grant or or request that wasn't expected, that comes in and they're not really quite sure what to do with it. And I love that you mentioned that they're, you know, spending on their their resource, their talent, resources in these organization, and focusing on their mission. But it's also, I'm a big believer in endowment and to support financial in the future of the organization, so that they have financial independence for the future and to use these types of funds to for a quasi endowment, or if it's coming as permanent restriction endowment. I wonder if you could speak a little bit about that, that how that has helped shaped some organizations financially and their stability for the future.

 

08:21

Endowment is everything to create that sustained revenue stream when we know that philanthropists can be I don't want to call them fickle Lori. They're expensive to headlines and appropriately so, right? I mean, our clients could live in bubbles of privilege or sit up high in ivory towers because our clients are well in town, and that is our business investment management, and our core client segment is 25 million, up to a billion dollars. But that's not what they do. Right? They pay attention and appropriately so or attentive to the needs of the day. But organizations do fall in and out of favor, so making sure that they've got those really consistent, reliable revenue streams that come through endowment are so important, it's a critical mix in terms of diversification of revenue. So we really do encourage our clients to prioritize these long term investment accounts. I have an organization about which I have cared deeply for the majority of my life that recently closed. It was a 90 year old organization. I had to update my will, because this organization sees to exist, and I believe that a big part of that was that we hadn't paid the right amount of attention to building that endowment over time. It's not too early if they start, particularly with quasi endowments that have parameters around them where it is important to spend more than an amount that would sustain the purchasing power over time that that flexibility is there with the right oversight and structure, it's never too early for an organization to start building an endowment.

 

10:09

I absolutely agree. Yeah. So we could talk about endowment for a long time, but I really want to get more into the generational giving that you were mentioning before, and if you can share some insights from the recent study that you did, and also just from your your experience working with them.

 

10:27

So the Bank of America, Private Bank study of wealthy Americans is solid gold, the insights that it has into not just philanthropy, but the broader wealth experience. And remember, philanthropy, it's the greatest freedom of wealth. It only exists in that broader continuum of a family's financial ability. And so our study of wealthy Americans looks at investments. It looks at estate planning, collection of art, philanthropy, and importantly, family dynamics and the findings related to the rising generation are absolutely fascinating. One that stands out to me as a really important headline is where they're giving. They're much more likely than older Americans to prioritize climate to prioritize social justice and also those basic human needs, including housing for our neighbors. It's

 

11:32

interesting and so and how does that reflect in how they are giving? Is it?

 

11:36

Are they giving in different ways?

 

11:40

So the rising generation, again, the millennial and Gen Z that are part of our study of wealthy Americans, are prioritizing non financial strategies for giving. Today, I do think that will change as this $84 trillion wealth transfer continues. It's already begun as their financial means increase, both the wealth that they inherit and also the wealth that they'll create through their own professional lives, but now they are just as likely to volunteer. They're more likely to be mentors, and importantly, for nonprofits, they're more likely to be fundraisers for nonprofits, often leaning into their personal networks to inspire others to give and Lori This is so so important, because with the rising generation, again, the millennial and Gen Z, their lack of trust in social institutions is really quite pronounced, and They look to each other to source and vet organizations to support, and so their willingness to fundraise and to lean into these peer to peer networks really will become the future for giving for nonprofits. So

 

12:51

it's interesting. So I wonder. Diane, can you think about like because you have a broad outlook of the philanthropic sector right now, can you think of anything that you see that's really innovative or up and coming in the philanthropic role that you're saying now,

 

13:08

the organizations that will continue to thrive are the ones that engage the rising generation and also women as the all in philanthropists that they are right. We look at the five T's, time, talent, treasure, testimony and ties, millennials, Gen Z and women, they will not tolerate the old transactional patterns of fundraising that older generations of men accepted as normal, and so really finding pathways to engage with them much more holistically will continue to be important, including especially opportunities to volunteer. We know from our Bank of America study of philanthropy that volunteering is the gateway to giving. Volunteers give two and a half times more than non volunteers.

 

14:01

Yeah, so it really is amazing. That's why I always suggest to individuals to when they're interested in doing something in philanthropy, to start to volunteer offer, to sit on a board or a committee, advisory committee, and get involved, and then that I feel like their overall philanthropic journey will get launched from that point, it's really hard to sit back. I mean, I guess generations used to do this, sit back and then trust in the organization and give in that way. Now, everyone needs to get involved and see it for themselves, and I think it's really important. Volunteering is really one of the best ways to do that. You mentioned that you were passionate about an organization that unfortunately has closed. Did you volunteer? Or how is it that you were connected with them?

 

14:49

So I volunteered with them as a young person. So I'll just, I'll name names. It's just a matter of public record. So it's the junior state of America, and it as one time, was the largest student run organization in the country, and it's an organization that's committed to civic engagement. It really did bring up a whole generation, multiple generations of young people that really felt empowered as citizens and really committed to democracy, so an organization, for all the obvious reasons, has continued relevance today, and yet didn't make it. So I was very involved as a student, and I was actually the first student trustee. It was my first board seat was when I was 18 years old, as a student trustee for JSA. It's what it was known as the abbreviation, and I will say I was involved as a donor, but not as a board member. I kept telling them I was going to join the board

 

15:58

asked me again the next year, and tired.

 

16:05

I don't have many regrets, but that is one of them.

 

16:09

So this is really interesting. So I want to, I'd love to explore a little bit more about your your inspiration to give I know we spoke previously in our your first episode with us. Can you share a little more about your who influenced you and and let's talk a little bit about your your relationship with philanthropy. Because what I'm getting from you, from from our conversation, and what I know about you that your your leadership, is related to your giving, and I'd love to share with our listeners a little about your journey.

 

16:46

I was raised in a household with two philanthropists. I talk a lot about my mom, and mostly I cry when I do that, so I'm going to try to do it today. She's tea with the OG 5t philanthropist. I mean, she just was all in. One of her passions was around the environment, way ahead of her time and all of that, certainly, using her time and talent for nonprofit organizations that were in that space, she was one of the drivers behind the nature reserve that was in our town in northern California, volunteering as a docent, but also a board member. She's got great quantitative skills, so I think she kept their books for I don't know how long my only pause was when she would bring home live animals that she would then, you know, take to schools, you know, the following day the little furry ones were okay, the snakes and bags. Oh, no, I love about that. But, you know, she would no job too big, no job too small. She was so passionate. And it's those passionate about that work, you know, but she also really used a lens around advocacy. She realized very early on that just using the levers of time talent treasurer weren't going to get the job done, and so she took a step back and really galvanized networks to advocate for policies that mattered most, to preserve and protect the environment. And my dad also, you know, my dad was a very, very, very busy physician, and, you know, still makes house calls today. I mean, devoted to a profession of giving back. And there are plenty of doctors that feel like they give at the office just by giving of their time, but that was never enough for my dad, always prioritizing out of a real sense of gratitude. Education for him, was a real lever for a transformation in his trajectory. He went to college with not much money in his pocket, and then it was on him to make that happen. He always laughs. He says, No, I don't have a college degree. And the reason why he doesn't have a college degree is because he left college after three years and went directly to medical school, and he continues to get back, in particular to his medical school, drew an endowed scholarship, and he's been super, in fact, active as an alum. And they're just really remarkable role models that I hope to embrace and live into their legacy. But then, of course, trying really hard to pay forward with my kids too.

 

19:40

So I absolutely

 

19:42

love this. So you obviously come from philanthropic background, your experiences when you were younger, you're sharing this with your children. Now, what do you think are some of the traits and abilities that people either develop or help their children develop to encourage

 

19:59

giving back?

 

20:02

So I always look to the research, right? So women's philanthropy Institute has done really important research in this area through their women give series, and again, it talks about how mothers and fathers can inspire generosity and daughters and sons, and where I will say there's commonality across the board is that you must both say and do you must say and do so. The say part, I think, is particularly important because you've got to close caption, particularly board service right for kids, they don't understand what that means to serve on a nonprofit board, and so when you walk out in the evening to go to a board meeting, they don't know whether you're going to a cocktail party or something else. So you've got to tell them what you're doing and most importantly, tell them why, why it matters, why it's connected to your values, and importantly, why it interfaces with the community's greatest needs. Again, going back to the Bank of America, study of philanthropy, the number one reason why people live is because it's a reflection of their personal values or their personal interests, those are number one and number two. And so we're always pushing our clients to make sure that they take that extra step, to make sure that whatever aligns with their values is also proximate to the greatest needs in the community. And you've got to break that all down. Gotta break that all down. And don't dumb it down for kids, right? So, so the say, and then also do, right? And especially do with them, make sure that they're on the front lines. And so as a for example, and as as young as you possibly can for many, many, many, many years, on the first Saturday of the month, my children and I would go to our church, to the sandwich kitchen, where we would make sandwiches. Don't really love baloney and mustard. After all of those sandwiches, all of those sandwiches, and, you know, packaging them all up and then take them to the men's shelter. And so my kids came in car seats, because it was something I was doing before they could come. And I, you know, they did age appropriate things. You know, we would always gather up candy, so there was something they could do to drop it in the bag. And then we would take them together to the shelter, and I would explain to them how it could be that somebody could become unhoused, right? That you know, the number one reason why people lose their housing is because of death and increasingly, medical debt, right and how important it is to have health insurance through your employer, or importantly, how important it is to have social safety nets for the government to be able to help when that private insurance isn't available, and explain to them that it's not always possible to just go live with your mom again, or just go live with your sibling if you're in a situation where they're multi generational patterns of poverty and don't dumb it down, don't dumb it down, because it's important for them to understand that it's not somebody's fault, that they're homeless, that there are multiple factors that contribute to all of that, and to really Lean into, again, the age appropriate explanation. And what I love about that is it builds the muscle for empathy, right? It builds the muscle for compassion, and also it builds the muscle for agency, that even as small people, they can do something that helps, even if it doesn't solve the problem for the person who is unhoused, it does show that you care. It shows that they're seen. It shows that they matter, and that helps. And I'm so so so blessed, and I do not credit myself for sure. Certainly, I also have an amazing husband that gives back so tremendously of his time, his wisdom, really prioritizing financial gifts as well. But I'm really, really grateful to say that I've got two college aged kids that have arts for justice right, and that are attentive to the needs of our world, and they're really thinking about ways within their own purview that they can also give back. And I'll just brag on my son as a for example. So my son, Brad, when he was required to volunteer as many high school kids are, you took a minute instead of just signing up for whatever slot was available to do whatever is convening for him, he took a minute to take a step back and really think about what matters to him. And we had a family member, my husband's sister, who passed away from breast cancer when she was 40 years old. And he was very, very young boy when this was all happening, but he knows these really specific memories of my husband being called to give donations

 

25:37

of blood and also

 

25:39

platelets for his sister, because they were a really ring match. And so he realized that the American Red Cross was the facilitation of all of that. And so he prioritized giving back to the American Red Cross as a blood ambassador, but also as a donor. I mean, it's amazing to me that I'll come home, he'll be on break, and I'll see him with these bandages on his arms, and it's because he's gone and donated, and it's just He gives what he can today, but I know that as his own wealth increases over Time, that he'll continue to do more. So it's affirming. AD, Mama moment,

 

26:24

absolutely Dan, why I love talking with you, because we get these really lovely stories from your family that come out. And I think everyone can relate to this. You know, everyone you know. I certainly hope that everyone can relate to the stories like this of how we are influenced, inspired by generations before and how we also want to inspire the next generation. So we're getting towards the end. So of course, it's our last question that we always ask, and you'll probably remember this, but since it's a great segue, you were talking about your children, what would you like your legacy to be?

 

27:04

I think any mother's greatest legacy is in their children and what they will do. And the challenges are great to make this world one that is compassionate, one that is curious, one that is healthy and one that will provide opportunities for everyone to achieve their greatest potential.

 

27:34

Thank you for that. So with that, where can people find out more information about you and all the studies that you mentioned,

 

27:43

the first place they should go is the Bank of America, private bank website. If you look for our philanthropic solutions, that foundation and endowment investment management team, you'll see tons of resources, including both research reports that I referenced. The other one that I think is so relevant to this conversation is our new digital article onto the five stages of charitable giving. Five Stages of philanthropy. We go to four years old all the way up into retirement in the legacy years, providing really tactical opportunities for people to inspire generosity. You can also connect with me on social. I'm on Facebook, I'm on Instagram, and I spend more time than I care to admit on LinkedIn. So if you ever try to find me, just send me a direct message on LinkedIn, and you will get my attention and a response,

 

28:41

great, thank you. And yes, we are connected on LinkedIn. So I do see the posts that Diane has, and they're incredible because she shares lots of resources for philanthropic journeys, including some really great books that I have sometimes picked up because Diane has suggested them. So, So Diane, thanks again for joining us, this has been just a great time to reconnect and also, of course, talk about the study that just came out. So thanks for joining us, and thank you for all our listeners. We hope that we provided some insight and inspiration that you use for your own journey. And if you enjoyed hearing Diane's story, please be sure to share it and to raise awareness and to inspire other women to take action. Thanks again. Diane,

 

29:26

thank you. Lori,

 

29:30

thank you for joining us. I hope we provided some insights and inspiration that you can use for your own philanthropic journey. You can tune in every week, on Wednesdays, when new episodes are dropped, I'd love to hear your feedback, so leave a comment and a rating about what you like and what you'd like to hear more about. And if you liked the episode today, make sure to share it, to raise awareness about the story, to inspire other women to take action. I'm Lori Kranczer, and until next time, you can make a positive impact through philanthropy every day. Thanks for listening

lori kranczer
Previous

Episode 98: Kate Kennedy
Next

Episode 96: Alex Amouyel