Do Your Convictions Require Courage?
I was thinking the other day about my grandfather. I was conducting an offer summit for a new client and providing a little bit of my background as a third generation fundraiser. I mentioned that my grandfather had been working for a small Christian college in New York (no longer in existence) in their fundraising.
This was in the late 1920s. At the time, one of the primary tools for fundraising was the gift annuity. People made a large gift to a charity which then invested the money and provided a regular payment to the donor. At the donor’s death, the money that was left was transferred solely to the charity.
These people were generally not wealthy but often very generous. But waiting for people to die to realize the full amount of their gift takes time — and a lot of patience. I’ve always jokingly said that if you make a planned gift to an organization, you can expect to live an extra 5 to 10 years. Not a guarantee but something I’ve observed over the last 45 years.
If you’re wanting to see a higher return, you could be tempted to take riskier investment positions.
In the last few years, we’ve seen a number of companies go bankrupt or lose a fortune because one person found a loophole to do this same thing.
Always willing to risk someone else’s money for their gain.
In the 1989, some genius came up with the idea for the Foundation for New Era Philanthropy. It all sounded too good to be true — and it was. It was nothing but a giant Ponzi scheme that ended up swindling $135 million dollars from Christian organizations.
It was no different for this little college with, I’m sure, big dreams. This was the roaring twenties after all!
Margin requirements were virtually non-existent (one only had to provide 10-20% of the stock cost from their own pocket). Millions of dollars were there to be made with a little investment — and, as it turns out — a lot of risk.
And so the administration of this small, Christian college decided to take the lives of its donors and put them at risk by taking the annuity funds and investing them in the stock market. They might as well have been playing the ponies or betting everything on a pair of twos.
This is where my grandfather took a courageous step.
He couldn’t condone this risky ploy to generate more dollars for a good cause. So he provided the administration an ultimatum.
Either the school decide to protect the donors’ investments or I will quit.
That’s quite a statement. I’m not sure that I would be so bold. I might be tempted to say something like: “I’ll look for another job” or “I don’t support this” but this is something that I’d have to follow through on.
This was the summer of 1928. The college administration and trustees decided that the risk of not investing in the stock market was too great. and
And so he quit. Right then and there. No hesitation. I don’t think he had a plan but he knew he had to take a stand.
He had the courage to follow his conviction.
Early on, it probably looked like he was just being a Negative Nelly. At the end of June 1928, the Dow Jones was at $210.55 and a year later it jumped to $333.79.
That’s a whopping 59% growth in just one year!
The college administrators and trustees must have thought they made the right decision. I’m sure they were patting themselves on the back all the way up to October 29, 1929.
And that’s when the annuitants, who were counting on their monthly checks, lost everything.
The college lingered for a few more decades, but it was never really able to fulfill its goals and so eventually closed their doors. I never had a chance to talk with my grandpa about how he felt afterwards but, based on the man I knew, I’m sure there was not a lot of gloating — just a deep sense of sadness.
My grandfather began a time doing a variety of things and meeting people who would play vital roles in his future work. But he didn’t know that, of course.
He just knew that the decision — driven by greed — wasn’t right.
Over the course of the next few years, he wandered. He was an itinerant evangelist. I’m sure with a family he worried about money, about the safety of a paying job, about where his next paycheck was coming from.
Those are things I’ve felt over the years as I ventured out on my own (off and on) into something I like to call “Gainful Unemployment” i.e. Consulting. It’s not a place for someone who needs stability.
A few years later, when he was the pastor of a church in Oak Park, Illinois (and head of the local ministerial association), he stood up and vocally opposed the Chicago Outfit moving their gambling and alcohol business into the community.
That didn’t sit well with the Outfit. They don’t take kindly to people standing in their way — so much so that they threatened his life. And for the following two years, he carried a gun wherever he went.
Talk about requiring courage!
It makes me smile to think about it. I actually have one of the guns he carried. I hope it was in better shape back then because a gunsmith friend informed me it was unsafe to ever fire. It causes me to think.
When was the last time my convictions required real courage?
I’m not talking about losing a few dollars or a little embarrassment. God knows how many times I’ve done something that should embarrass me but it doesn’t. I’m talking about losing a longstanding relationship with a friend — or even relative. I’m talking about being unemployed for months or years (hard to believe in this environment where there are more jobs than job seekers).
After all, if our convictions don’t require courage, do they really mean anything?
What price would you be willing to pay for your convictions? It’s a question I continually grapple with. Thanks, Grandpa, for setting the bar high.