The Future of Nonprofits, Moving to a New City in Your 20s, and Advice for First-Time Managers

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1:21Today, we've got two great listener questions. And after the break, we'll hit the Reddit hotline, pulling questions straight from Reddit. Want to be featured? Send a voice recording to officehoursofprojectmedia.com or post on the Scott Galloway subreddit. Let's get into it. First question. Hey, Scott. Ria here, calling from New York City. Thanks so much for all you do. Really appreciate the clear-eyed, level-headed advice that you give. My question to you is about the nonprofit sector, which I've not heard you speak about. I know you're primarily focused on tech and for-profit businesses. But my question, Scott, is that given the threats to federal funding, eroding donor trust, declining philanthropy overall, shifting foundation priorities, AI disruption, and the increased demand for services to support the most vulnerable among us, many of whom are being targeted by the Trump administration, as you rightly point out, what are your predictions for the nonprofit sector?

2:16And what strategic advice do you have for nonprofit leaders to survive and thrive? Thanks again. Whoa, so I'm not sure. I'm the person here. Religion and nonprofits are two of my million Achilles heel, and that is I don't know that much about them. So in January, the Trump administration enacted a funding freeze, which affected roughly$3 trillion of federal grants and loans, including, I don't know if you've seen, but there's been a lot of money that is not only going to nonprofits, but to educational institutions. Although this freeze was blocked by a judge, the White House has repeatedly threatened future funding for non-profit working in the fields of LGBTQ plus rights, climate change, immigration, reproductive rights, DEI, and more.

2:57Jesus Christ, really? Additionally, many of the philanthropic sector believe we're going through a generosity crisis as few Americans less than ever are making donations. Less than half of American households now give cash to charity. 20 million fewer households donated in 2016. than in 2000. What is going on here? Because if you look globally, people are globally spending more time helping other people they won't ever meet. That's a nice thing, right? But there's something going on around a lack of philanthropic mindset. Is it because we're going to church less? I don't know what it is. Is it because people's prosperity is not what they'd hoped and their quality of life is going down because of inflation and they just need to hold on to money?

3:40Is it because of social media algorithms pit us against each other, so we're less inclined to trust institutions, trust others, and give money away, that we don't have the same common to a man? I don't know. Where can nonprofits look to fill these gaps? The ultra-wealthy. In 2024, billionaire wealth surged by$2 trillion, growing three times faster than the prior year, with nearly four new billionaires minted weekly. There are now 10 times more billionaires than in 1990. Think about that. There's no demographic group, not Latinos, not old people. In the last 34 years, the number of billionaires has increased tenfold.

4:19So I work with a lot of universities and they have very robust development departments. And typically development departments are filled with very high EQ, late 30s, early 40s women who have kids at home and we're working in the corporate sector and they need more flexibility and they go to work in development for a university And they just try and gestate, manicure, shepherd and develop and mature these relationships with really rich people or specifically really rich alum. And they're very good at what they do, but they invest long term in these relationships. And generally speaking, they want to get the reason why they raise small amounts of money.

4:55I just participated in the one day giving thing at NYU Stern. Once you give, you're invested and you're more inclined to give more. And what they're hoping, the reason why they want to raise$100,$200,$1 ,000 from an alum, it probably takes more time to raise the money. It probably costs more money to raise the money. But once they get you to give, you're invested, you're comfortable giving, you're much more likely to make a bigger cash donation sometime in the future. And then where they make their money or how they kind of butter their bread is that they occasionally find a whale who makes a huge gift.

5:29And that is kind of everything for nonprofits and these institutions. I'll use Scott Harrison as an example. Scott, who runs Charity Water, he is so good at establishing relationships with people. One, he's just a people person who's good at it. He was a club promoter. And the guy, I've known the guy for, I think, 25 years. We shared office space together. I always gave him a little bit of money. And he's just always done a really good job curing or manicuring, evolving his personal relationship with me. And I've given six figures, seven figures to Scott. I don't know. So anyways, and quite frankly, I'm not passionate about bringing potable water to Africa, sub-Saharan Africa.

6:07It's just not something, I don't want to say I don't care about it. I think it's wonderful. The reason I do it is I'm invested in Scott. I know that his nonprofit is so well run and so innovative that those dollars are being put to good use. I don't know if I have a lot of insight here. What I will say is that I appreciate the question. And it's one thing to cut funding to nonprofits because you think that maybe they're not spending it as efficiently as they should be. what is most depraved about all of this is having a political bent on it, and that is cutting money to nonprofits because of a certain political leaning.

6:38I just find that, I don't know, if I have a better term, gross. Thanks for the question. Question number two. Hi, Scott. My name's Joe. I'm 21 years old, and I'm a senior in college about to graduate this April with a bachelor's in marketing. I discovered your book, The Algebra of Happiness, in 2023, and ever since then, your content has really helped to change the trajectory of my life. Your career advice helped me land a great internship that turned into a competitive full-time job offer. You helped motivate me to get in the best physical shape of my life. But most importantly, your advice surrounding relationships with people greatly strengthened my own relationships with my friends and family.

7:15While I'm a big fan of your professional and political works, your advocacy for young men is what resonates with me the most. I'm about to start the next chapter of my life, and I'm fortunate enough to be moving to a big city. But my parents, friends, and girlfriend will go from a quick walk or drive to an expensive plane ride. I'm grateful for my situation, but I'm also slightly terrified. How did you deal with experiencing true independence for the first time? And do you have any advice for maintaining a healthy mental state while dealing with the loneliness that would likely accompany the independence?

7:44Please keep advocating for young men. Your message is working. And if you're ever in Boston, I'd love to buy you a drink. Thanks. What a thoughtful question. So Joe from Boston. First off, everyone wants to be you right now. You're 21. It sounds like you're in good shape. You have a girlfriend, good relationship with your parents, and you're starting your professional life. So well done. You should feel really good about the, you know, where and when you are right now. So just what popped into my mind is it'll be interesting. It'll be inspiring. But the real world is your first one or two years, you're going to have a moment where you go, wow, this fucking sucks.

8:21Or I didn't realize that this would suck this much or that this is hard. And that's exactly where you're supposed to be. And so just realize it's temporary and that's part, everyone's first job, or not everyone, almost everyone's first job sucks. My first job was at Morgan Stanley in fixed income. And within about 48 hours, I'm like, Jesus Christ, this is awful. And it ended up being good for me. It was like serving the Marines. So I don't know, just sort of expect, I don't want to say hate your first job, but have it be not cracked up to what it's supposed to be. In terms of maintaining a healthy outlook and being mentally fit.

8:55It sounds like you got sort of the keys figured out. That is, you're exercising. It sounds like you have good relationships. You know what? Call your parents every day. Stay in close contact with your girlfriend. Find ways to have her come visit or go visit her. I don't know how far away that is. And then just be really open and thoughtful about saying yes to things as much as you can in your new city such that you establish relationships there. The mistake I made when I first got to New York, you know, I was so immature. I made the first, I made the kind of the same mistake I made when I first got to college.

9:33I couldn't, New York was too much for me. It was just a playground. There was something to do every night. I'd go out, I'd get fucked up. I'd be totally hung over. I'd wake up at 844 to get to work by like 915, try and do some work and then try and go find a conference room, no joke, because I was so hung over and I would hide under the conference room table and I'd sleep for an hour. And then I would go get a greasy lunch. And then that, and I think, okay, tonight I'm just going to go home, call my mom, get some sleep and, you know, go to bed really early, watch 30 something, something like that and go to sleep early.

10:09And then inevitably that mix of grease and Advil would make me feel just reasonable for an hour. And a buddy would call me and say, we're meeting some models downtown at Obar. And I'm like, I'm in. And I'd go do the same goddamn thing again. And I was smart enough to know, okay, I can't handle the temptations of New York. And I had an opportunity to go to the LA office of Morgan Stanley. So I took it. I moved back in with my mom and I kind of stopped drinking. And this is a long parable or way of saying, try and tone down. And I don't know if you're doing this, but I got better at making the requisite commitment to being good at my first job, which sucks.

10:49And I expect a lot of you at a place like Morgan Stanley. I got good. I stopped drinking and smoking pot for a while. And I did work out. I went to the YMCA or the YWCA, YMCA, whatever it was, in downtown Los Angeles. And I worked out not every day, but, and I didn't have a lot of relationships. I had some friends I used to go out with, but my primary relationship was with my mom, who I was living with. And then I had some friends, but I didn't have any girlfriends. I had a lot of girlfriends in college. I found that a young man right out of college is just not that attractive. That all the women I wanted to date were dating guys in their 30s who were hedge fund managers who could take them to St.

11:29Bart's or Aspen or the Hamptons. And the women in college that I used to date were dating other college guys. So you're sort of in no man's land when you're a young man or right out of college, I found. So the fact that you have a girlfriend is really wonderful. I would just say try and maintain your current relationships, be physically fit, and recognize that your first job is not going to be easy. And also just optimize your logistics. What do I mean by that? Have a clean apartment near work. Try and cut commute time. Even if it's a small place, just a clean place near work, because you're not going to spend a lot of time at home.

12:07to, if you can, don't buy a car, have a uniform, keep your clothes really simple, really easy, get a workout routine. Just try and starch out all the extra time and logistical constraints on your life so you can focus on work and you can focus on relationships. But my brother, I don't know, you're so far ahead of the game. The fact that even thinking this way means you're gonna be just fine. And let me finish where I started and that is really good to be you. Congratulations on all your success And again, recognize that when you hit some rough spots and you think, wow, this isn't what I thought it would be.

12:42That's exactly where you're supposed to be. Most people's first job is not fun. And the fact that you just make sure your parents are there, call them every day. It's sort of a release valve or every week to tell them what's going on in your life. Obviously, other things will take over in terms of your desire or your ability to ensure you maintain your relationship with your girlfriend. but again, I don't know boss, you should be coaching me I wish I had you to tell me what to do when I was your age congrats on everything and best of luck in your first job we have one quick break and when we're back we're diving into the depths of Reddit buckle up

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14:46Welcome back. Let's bust right into it. Today's Reddit question comes from Mr. Roto.

14:53They say, Hey Scott, I'm a 35-year-old who just got his first managerial position. What advice would you give to a first-time manager? especially one whose team is remote? That's a good question. So people often make the mistake of thinking that, okay, I'm nice and I'm smart, which means I'm gonna be a good manager. No, being nice and smart doesn't make you a great tennis player. It doesn't make you a great, it doesn't make you great at basketball. Management is its own sport. And it takes a few things. One, I find the great, kind of the best managers have the following attributes in common. One, they are willing to demonstrate excellence and share that excellence.

15:34So my partner in the business, Catherine Dillon, has always been what I call a player coach. And that is, rather than managing people, you got to set up an incentive structure that works, got to provide feedback. That's really important. But what she does is she helps people do their jobs. Instead of, in addition to saying, okay, this wasn't great, she will actually, she can do that. And she can do that almost as well as, or better, almost everything in the She doesn't provide just feedback. She provides learning. She sits on, I don't have the patience for that. If I say to someone, when I send feedback, like this edit on this podcast sucked, I don't call them and then say, okay, let's edit it together and let me teach you.

16:10I just say it sucked. That's not that inspiring or that helpful. They demonstrate excellence and they're willing to share that excellence with their team. They take the time to try and teach people and upskill them too. They hold people accountable. And that is they set out definitive goals and benchmarks and they say, okay, we're going to check in and they hold them accountable. All right, you missed your target. What's up? How can I be helpful? But you missed your target or you exceeded your target. Well done. Let's celebrate that together. They hold people accountable. And then third, good managers demonstrate empathy.

16:41And what do I mean by that? I always assumed that everyone just wanted to be like me, rich and awesome. That was my goal. I want to be super fucking rich and super fucking awesome. And so that means you do as well. Well, what you find out is that for some people, or most people, they don't share exactly your same aspirations. Some people want to manage other people. They get huge reward out of someone reporting to them and figuring out how to manage. Some people want to see their name in lights. Okay, fine. You're going to manage the staff. You're going to manage this group of people. You're going to take on this project.

17:12You're going to manage a kind of corporate initiative. Oh, you're going to, when the New York Times calls and asks for a quote, I'm going to turn them over to you as an analyst in that they just light up, right? That's just hugely important to them. other people need some flexibility. And it's like, if you can provide that for them, especially as a, I was into remote work kind of a long time before other people. And when I say that, I think it's terrible for young people, but I, my secret kind of human capital weapon in the 90s was I hired quite a few people who were brand managers out of really iconic companies who left because it wasn't compatible with having kids.

17:47They weren't nearly as generous of maternity back in the 90s. And I would say, come in two days a week, but you can be home three days a week. And I found that mothers were really efficient and disciplined because there was no like they had to leave at a certain time to get home to pick up their kids or whatever. And so I hired a lot of mothers and gave them remote work flexibility, which doesn't sound that progressive now, but it was back in the 90s. Why? Because I would learn about their situation and think, OK, I'm going to cater my management of you to what is your specific situation. If you can demonstrate to people that you have a vested interest in their success, that you are fighting for them, they will be loyal to you.

18:27And that is a really powerful thing. I didn't figure that out until later in my management career. But understanding what's important to people and then giving them the sense that you're fighting for them and that they can trust you is really powerful. First, got to demonstrate excellence. Got to be really good at what you do, sit people down, and not only demonstrate excellence, be willing to share with them, to hold them accountable. Hold everyone accountable. There's a reason you're here. You're good at what you do. And if other people don't match you, we hold them accountable and we let people go.

18:58I think that's part of management. And then finally, you demonstrate empathy. I'm going to learn about you. I'm going to learn about your priorities. And I'm going to demonstrate to you that I understand your priorities and I want you to be successful. I have a vested interest. Because sure, my success is more important to me than anything, but I also do spend a lot of time thinking, what does this person value? How can I make them more successful? How can I get them economic security? How can I help them participate in our success? What specific soft things, prestige, management, feedback, do they really value?

19:32And they'll see that I have listened and learned. because again, loyalty is a function of appreciation and appreciation is a function of empathy and tailoring your specific empathy to that specific person. Appreciate the question. That's all for this episode. If you'd like to submit a question, please email a voice recording to officehoursatproftymedia.com. Again, that's officehoursatproftymedia.com. Or if you prefer to ask on Reddit, post your question on the Scott Galloway subreddit and we just might feature it in our next Reddit hotline segment.

20:13This episode was produced by Jennifer Sanchez. Our intern is Dan Chalon. Drew Burrows is our technical director. Thank you for listening to the PropG pod from the Vox Media Podcast Network. We will catch you on Saturday for No Mercy, No Malice, as read by George Hahn. And please follow our PropG Markets pod wherever you get your pods for new episodes every Monday and Thursday.

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