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Category: Foundation

Chamber Affiliate Structure with Bob Durkin

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Brandon Burton (00:01.078)
Hello, Chamber Champions. Welcome to Chamber Chat podcast. I’m your host, Brandon Burton, and it’s my purpose and goal here on the podcast to introduce you to people and ideas to better help you serve your Chamber members and your community. Our guest for this episode is Bob Durkin. Bob is the president and CEO of the Greater Scranton Area Chamber of Commerce, a role that he’s held since 2013.

As CEO, Bob leads strategic planning, financial oversight, staffing, and programming for the chamber and its affiliated organizations. With decades of leadership experience across nonprofit economic development and regional government sectors, Bob previously served as president of the Northeast Regional Cancer Institute, a Northeastern Pennsylvania-wide nonprofit consortium.

supporting community and patient services, cancer research and healthcare collaboration. Prior to that, he was the founding executive director of the Lake Lackawanna Heritage Valley Authority, advancing regional community development initiatives. Bob’s longstanding commitment to economic and community advancement includes serving as vice president of the chamber from 1988 to 1993 and holding leadership roles across numerous boards and organizations.

A graduate of Penn State University, he also completed advanced studies in public administration and organizational management, including programs at the US Chamber of Commerce and the University of Delaware. A dedicated community advocate and mentor, Bob remains actively involved in regional initiatives from youth sports, continuing to champion growth, collaboration, opportunity throughout the Northeastern Pennsylvania region. Bob, I’m excited to have you with us today here on Chamber Chat.

podcast. I’d love to give you an opportunity to say hello all the Chamber Champions who are out there listening and share something interesting about yourself and correct any mispermissions that I shared in your bio.

Bob Durkin (02:07.684)
Well, being from Lackawanna County, where you we have a lot of different Native American names, including Lackawanna, where the where the rivers meet, by the way, is what Lackawanna means. Yeah, I’m a native of Scranton, the Scranton area, and remain and love Northeastern Pennsylvania. And of course we’re all chamber people, right? So, you know, even in the dead of winter where last week we were, you

Brandon Burton (02:22.062)
Okay.

Bob Durkin (02:37.664)
Arguably the thermometer said it was about zero degrees. Anybody that asked me about it, said, well, you know, no, it’s 75 and sunny in Scranton. My, my, my running joke about how grounded I am here is that the town I live in just outside of Scranton is called Oliphant. And it’s just about seven miles from Scranton and I, I’m on my fourth house in Scranton, in Oliphant. And I always say I’m the George Bailey.

Brandon Burton (02:46.958)
You

Bob Durkin (03:06.422)
of the of the area every time I think I’m getting out of this town. I buy another damn house so my my my personal the most important thing truly in my entire life that that stands out when people ask what’s you know what is unique about my world. Outside of the chamber world it’s that I’m I’m a proud parent of a special needs on my son Kevin who’s 33 has Down syndrome and so much of what.

Brandon Burton (03:11.694)
There you go.

Brandon Burton (03:24.034)
We need to focus on that. That was actually a good

Bob Durkin (03:36.26)
I and my family have done in those 33 years is wrapped around Kevin and our relationship, not just to him, but to the Down Syndrome community where we helped create a Parents of Down Syndrome organization. And I’ve been on the boards of several different special needs organizations in our region. So it’s that that’s a really if there’s a signature element to me outside of my business work, it’s it’s Kevin and it’s Down Syndrome. So here it is.

Brandon Burton (04:03.916)
Yeah, that’s great. That’s great. Well, I’d like to give you an opportunity to share a little bit about the Greater Scranton Chamber of Commerce. Give us an idea of the size, staff, scope of work to some degree. I know we’ll spend more time on that budget just to kind of set the stage for our discussion.

Bob Durkin (04:22.948)
Sure. Well, as Brandon, as you and I have talked before this, and we’re going to be talking about in more detail coming up, the Greater Scranton Chamber of Commerce is a bit of an anomaly. You know, you’ve heard this before in the chamber world. If you’ve seen one chamber, you’ve seen one chamber. And we are certainly a signature aspect of that with multiple different divisions. We have actually eight different

Brandon Burton (04:41.067)
One chamber.

Brandon Burton (04:45.706)
I’m not going to go that.

Bob Durkin (04:51.527)
501s under the chamber umbrella. And again, we’ll dive into that a little bit later. This chamber, the chamber itself, we are 1400 members strong. We largely represent Lackawanna County, which is Scranton as the hub here in Northeastern Pennsylvania, but we often refer to the third, a third, a third. We have a third of our members in the city of Scranton, a third in Lackawanna County proper and a third outside Lackawanna County.

Brandon Burton (05:14.286)
So, think that’s something that I’m not assuming that I’m going to say. So, I’m going to do a little bit of explaining the session, and then I’m going to try to explain it to you guys as well. So, I’m going to do a little bit explaining the session,

Bob Durkin (05:18.9)
in mostly in the surrounding counties and regions. Our sister city is Woodsboro, which is right, you know, just to the south of us in Luzerne County. We are in addition to the chamber and the other affiliates, we really are the largest economic development organization in the region. Our budget, chamber budget, I’ll use round numbers, is about $4 million.

Our overall budget is a little over 8 million. As I said, roughly 1,400 members and staff of 26, all of whom work from chamber but are farmed out through management agreements to the various affiliates.

Brandon Burton (05:57.199)
Okay, very good. That definitely helps to give perspective, especially as we get into this discussion today where we’ll dive into these affiliates and the approach and structure and when things make sense and all of that. But I did have one question that I think is important for listeners that are probably wondering.

is Dunder Mifflin Paper Company a member of your chamber?

Bob Durkin (06:32.866)
Well, that was actually a very interesting question. And it’s one that you ask everywhere across the country. Not only is the the company that inspired Dunder Mifflin, Pen Paper, Pennsylvania Paper, that does exist. But beyond that, during the entire original filming and the what, eight years or nine years of it, every single episode of that included a member of our staff.

listening in and working with the development directors and producers to make sure that there was an authenticity to all of their references to Scranton proper. So when you hear, you’re an office fan, all the references to poor Richard’s pub or Cooper’s restaurant or Lake Scranton, they’re all real. And in fact, M-Taper, the very company that when you see on the opening credits, you’ll see a tower.

Brandon Burton (07:02.604)
Do it.

Bob Durkin (07:29.622)
of an older building that says, you know, that’s pen paper. I can see that from my office. When I open my, roll out my window, I can see it right there. So yeah, it’s fun to have that. have people probably every single week we get calls from people all over the country. We’re traveling through Scranton, want to know where can I find this or that? So we have materials on this. In fact, the other part of that was almost all the things you see on the desks of the office people came from us.

Brandon Burton (07:43.662)
Yeah.

Brandon Burton (07:51.245)
Yeah.

Brandon Burton (07:58.413)
Yeah.

Bob Durkin (08:00.088)
We literally in that time, our staff would reach out to our members and say, hey, give us some of your tchotchke or whatever materials. So when you look at that, next time you look at the office at the PAM behind our front desk, there’s the plaque of the Greater Scranton Chamber of Commerce right behind it.

Brandon Burton (08:13.612)
Yeah.

Brandon Burton (08:17.046)
That’s awesome. That is awesome. I want to rewatch the series now and look for all the Easter eggs that are hidden. And I’m sure Michael Scott got his world’s best boss mug from you, right?

Bob Durkin (08:18.776)
Yeah. Yeah.

And by the way, not to belabor this, but all of those folks have been here, including Steve Carell. They’ve all been in discranton many times.

Brandon Burton (08:32.002)
Yeah, that’s awesome. That’s awesome. Very cool. Well, we will dive into this discussion about affiliate structures as soon as we get back from this quick break.

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All right, Bob, we’re back. As we mentioned before the break, we’re going to talk about the uniqueness of what makes the Greater Scranton Chamber what it is with the structure of these different affiliate organizations. You mentioned when you were talking about the chamber,

how you have eight 501Cs underneath the structure of the chamber itself. And I would be curious, I’m sure listeners are curious, so first of all, I think it makes sense to talk about what these different affiliates are. And when it makes sense to, whether it’s spin up an affiliate or bring in an affiliate under the chamber umbrella,

Bob Durkin (09:05.124)
.

Bob Durkin (09:16.974)
Mm-hmm.

Brandon Burton (09:26.944)
Maybe that’ll come up naturally as we talk about how these affiliates came to be and their purpose behind them. as you share about them, I’m gonna pull up the screen for those that are watching this on YouTube, they can see kind of the structure as you talk through it.

Bob Durkin (09:34.02)
Thank you.

Okay, sure.

Bob Durkin (09:43.556)
So, think of the chamber as the umbrella in this structure. And our chamber is, if I have the numbers right, I think we’re 156 years old. We were called the Board of Trade for the first third of our existence, almost. But then when the U.S. Chamber was created, we were actually one of the founding members of the U.S. Chamber.

Brandon Burton (09:52.886)
It’s

with the US, that’s the way it is.

Bob Durkin (10:12.994)
And that’s a little over a hundred years. So that’s when we became a chamber of commerce. When you look at this structure from the bear with me as I put my glasses on here from the far. So look at the chamber at the top. So everything flows from the chamber. All employees work for the chamber of commerce. And several of the affiliates are actually legally owned by the chamber. Some are not.

Brandon Burton (10:30.781)
Thank you.

Bob Durkin (10:38.596)
So again, from your far left, you’ll see boxes Slipco that’s a Scranton-Lackawanna industrial building company. That is it. We’re a certified economic development organization in Pennsylvania. So in the roughly 80 year existence of Slipco, which came about just post World War II, do economic development. It’s pure sense. We build industrial parks and office parks. We’ve done 15 of them across Lackawanna County. Historically, we’ve created

Brandon Burton (10:58.882)
Thank

Brandon Burton (11:06.066)
I’m certainly a big, sort of, spiritual leader of the movement of present. So, thank you for listening. I’m going ahead and turn off. Yes, sir.

Bob Durkin (11:06.99)
tens of thousands of jobs in that context. So even today, with most of those parks being completely filled, we still own about 1500 acres of land. We have about 30 parcels that are prepared. If you turn that switch from chamber to economic development, you’ll understand what I mean by that. The Scranton plan is our economic development marketing division.

Brandon Burton (11:20.942)
Yeah.

Bob Durkin (11:35.896)
So it supports Slipco. The team literally is scattered all over the East coast or travels all over the country and sometimes internationally to try to promote the Scranton area. It’s one of those things that I always find this interesting when people, when Chambers have either visitors bureaus or marketing divisions and the people in the community say, well, why don’t you go out and tell people about your area? We do that all the time, literally every day.

Brandon Burton (11:43.34)
I’m going to try to get little for it.

Brandon Burton (11:59.279)
Thank you.

Bob Durkin (12:05.048)
We’re either online or in some sort of media platform promoting the region or our staff are literally out selling the area to professionals, site selection professionals, commercial realtors and the like. Life, the Lackawanna Industrial Fund Enterprises has a kind of a cool history in Stratton and Lackawanna County in that like Slipco and the Stratton thing came about post World War II. And it actually was a funding school.

Brandon Burton (12:13.08)
So that’s the of talk.

Brandon Burton (12:25.528)
So was like, five times what I was getting for the change.

Bob Durkin (12:33.252)
for small scale industrial properties all over the valley. So that if you, for those who’ve, especially in the Northeast, that would recognize that their little towns used to have dress factories and shoe factories and almost all of them owned locally, life at one time was the funding source for most of those throughout our region. It has morphed in more recent years to be sort of a service, sort of an in-house endowment. We have, you know, substantial

Brandon Burton (12:37.806)
It’s the power of the natural energies.

Brandon Burton (12:47.084)
Yeah.

Brandon Burton (13:02.382)
Thanks

Bob Durkin (13:03.298)
liquidity relative to Scranton. To put it in context, there’s about $7 million worth of liquidity in the fund. And so we use that internally now to support some of our activities. I’ll try to reference that later on as well. Skills in Scranton, the first blue box that you see there, that is our workforce development arm. And you can see I’ve attached on those the various 501 designations.

So that I’ll back up and say that this Scranton plan actually is simply a division of the chamber of commerce. Whereas a slip goes owned by the chamber life and then Scranton plan or separate 501 C four and C threes. So Scranton plan or I’m sorry, skills and Scranton rather is our workforce division. It’s a business education partnership where our team works with both secondary educational institutions and their end school districts in Lackawanna County.

And we also work with school districts in perimeter counties as well to do programs where we try to connect students with business and educators with business. Metro Action is our small business lending arm. For those who understand the small business lending world, at one point we were a CDFI, Community Development Finance Institute, which is a federal designation.

Brandon Burton (14:03.022)
to give you the opportunity to participate in this event. Thank you.

Brandon Burton (14:19.116)
Thank you.

Bob Durkin (14:27.364)
closed off that relationship that we do revolving loan funds for small businesses, partnering with our banks mainly. Leadership Lackawanna is a traditional community leadership program, multiple programs for emerging executives, new to the C-suite executives, high school students. We six different programs under the Leadership Lackawanna fund. Next is our trust fund. It’s the Neighborhood Development Trust. It’s a small endowment.

about a half a million dollars that we use for small scale partnerships with other business associations, for example. So while the chamber is a large player in the region, many of our smaller communities, including Scranton, has their own business association. when Scranton Tomorrow, as that’s referred to, when they do mural programs around downtown or they have festivals or things like that, we use that fund to support them with five, $10,000 grants.

Brandon Burton (15:11.886)
So we’re going to have a little bit a change in style, and we’ll to do a separate video.

Brandon Burton (15:22.99)
Yeah. Okay.

Bob Durkin (15:25.486)
When you go back down to the bottom and see the slip through utilities. So that’s how complicated we are. We, own the utility company. at one time we provided, we provided water to for 30 years, actually we provided water to one of our parks. we recently sold that to, the local water utility. it came to the point where there was a pipe, a major, mainline pipe burst in Scranton.

And we were at risk of having about 10 different businesses lose water for a week. And we were fortunate that was fixed. then as the next day, I called the head of the water company and said, Hey, you want to buy a water company? So we sold the water company, but we held on to the utility because as I referenced before, Slipco, our building company, we own properties throughout all these business parks. So it’s useful to have a small scale utility company in our back pocket in case we need that. Ignite, which

Brandon Burton (15:57.631)
Brandon Burton (16:20.574)
I’m to see what the sounds are going to

Bob Durkin (16:20.996)
is a part of Slipco. And just because it’s not a separate 501 doesn’t mean it’s not important. On the contrary, it’s very important. We own two different buildings that are business incubators, one in Scranton and Lackawanna County runs along the Lackawanna River. It’s a long stretch of maybe 50 miles, 40, 50 miles. And so we have a property in Scranton that serves as an incubator.

Brandon Burton (16:47.854)
I know that I’m going to be a star. It feels like a dream. I am one of the top eight on the world’s one of people who are going to be in the world’s top 10.

Bob Durkin (16:51.128)
We have another one in what we call the mid Valley, which is halfway up the Valley. And we’re about to purchase the assets of another, a third business incubator up in the upper part of our Valley in the city of Carbondale. so we’ll have three under ignite. We’ll have three different buildings. And right now we have roughly 50 startup businesses of all sorts. most, many of them are sort of back office technology based businesses.

that we’re nurturing in a three to five year period under the Unite program. So you apply to be part of Unite. You’ve got to have good financial standing. You’ve got to have a business plan. You stay with us for three to five years. staff, hands on staff daily meet with these people, take advantage of the core of talent we have in the chamber. And they connect these startup businesses with everything from legal, financial, marketing.

Brandon Burton (17:21.634)
night.

Bob Durkin (17:47.548)
you name it, all the different aspects, of course, for business startup. And the advantage there is that it’s a two-way street. It helps the business startups, but it also helps our own businesses because we’re connecting many of them to these fledgling businesses that are ultimately, sometimes they don’t have the money upfront to pay for the, you know, those services. But over time, you make those connections and when the businesses are successful, and many have been, many have grown by the, our greatest success at one point was

Brandon Burton (18:11.758)
Thank you.

Bob Durkin (18:17.372)
a company that went from 13 people to 1800. Then others, yeah, others we’ve had, we’ve had a lot of the kind of the classic one guy working part-time. Ultimately he gets to be 80 people and then he, you know, he sells the business to a larger enterprise and it cashes out. We have had a number of those. So it’s really exciting. So all of this comes under our mission of attract, sustain and grow business.

Brandon Burton (18:17.486)
Wow

Bob Durkin (18:46.39)
Attract is sort of, can see the splint and plane of trying to market the region. Sustain is sort of almost everything, which is sustain existing and legacy businesses. And grow is the Ignite program, which is our entrepreneurship program. There you go. We’ve run out of time,

Brandon Burton (18:52.302)
I love it. No, this is great. And having that structure to share, hopefully those that are listening have a chance to see it and I’ll put it in our show notes too, so you can see the layout of the structure. But I think you did a great job going through and explaining that.

Brandon Burton (00:00.942)
All right, so I’ve got a couple of questions as we look at the structure there. You had mentioned that Scranton plans support Slipco with the marketing for the economic development, which I think goes to the overall question of when does it make sense to stand up a separate affiliate versus having it be just a part of Slipco and being part of that affiliate itself.

Bob Durkin (00:10.974)
Mm-hmm.

Bob Durkin (00:25.312)
Yeah, that is a great question. And I’ve been asked that a number of times. And you probably know this, a lot of chambers have looked at that either to look to separate or they’ve talked to in the right size scale communities. Should we put all these under one umbrella? I will tell you that the pros and cons, there are about 100, but the things that kind of stand out are that sometimes, particularly when you’re dealing with public policy or relationships with

elected organizations, elected officials or structures. When you are an economic development organization, you almost always have to be playing the game with the state and federal officials, particularly, but also locally say, okay, we want some public dollars into the investments. So when we’re developing a park and we have the newest park, the most, I should say the youngest of our 15 different parks is really 25 years old.

Brandon Burton (01:03.054)
It’s always been with me. It’s always been with me. And it’s always been with me.

Bob Durkin (01:25.348)
And so when you want to develop the infrastructure for these things, you have to have public dollars in it. And it’s difficult if you’re trying to be the chamber speaking on behalf of the business community on a public policy issue. Let’s say you’re at odds with your elected officials on, you know, unemployment compensation bill or, you know, a childcare bill or something along those lines.

And then you say, well, we’re at odds with you. We’re taking a public position against that. And then the next day I say, hey, can you get us a million dollars to help us with the plumbing problem, you know, an infrastructure problem in one of our parks? So it’s, that, makes it hard. And we’ve been in that space. And to this day, I’m pleased to say we’ve never compromised in what our leadership has told us to do or asked us to do relative to standing up for the business community from a, from the chamber side.

so it hasn’t hurt us, but I can see how it could, if you didn’t play the game properly. So the way we do this, by the way, is that we maintain really strong ongoing regular relationships with all of the key elected officials so that they understand that there are going be times we’ll disagree with them and they say, fine, we’ll disagree on this point, but we’re not going to, it’s not going to hurt the overall investment of the, in the community. But if you don’t.

Brandon Burton (02:46.388)
I’ll you the next one.

Bob Durkin (02:50.057)
play that game very delicately, that can be a problem. The other part of that is from a staffing standpoint, and I think I may have mentioned that all of our employees work for the Chamber of Commerce and ultimately are farmed out in a sense to the various affiliates. Well, that sounds like a very simple thing on paper. But what you also have is I have people on the team, the economic development team, who they see themselves as Slipco employees. They’re doing economic development and that’s their space.

Brandon Burton (02:53.006)
Thanks.

Brandon Burton (03:00.621)
Yeah.

Brandon Burton (03:18.892)
Yeah.

Bob Durkin (03:19.775)
Then you have the chamber people who were doing all of the, you know, 50 different events and programs and educational efforts and blah, blah, and suddenly when it comes together and we try to keep it together, um, there are times where we butt heads. Um, communications, for example, is a very good example of that. So communications for our organization rests with the chamber, but, know, with all the activities of marketing and go with the development side, the development people are like, Hey,

Right? Like tomorrow, I need to do A, B, and C. I’ve got to get a flyer out. I’ve got to postings on, you know, different websites and social media platforms. And the chamber people are saying like, well, no, we’ve got the annual dinner coming up and we have this. So there’s a lot of head-butting there. And so we try to treat that in a very cavalier way, in a sense of saying like, hey, let’s folks, we know we’re going to run into this. So when we do, when that day happens,

Brandon Burton (04:06.135)
and

Bob Durkin (04:18.239)
Let it out and then we’ll, know, if need be, bring it to me, but I’m lucky enough to have some really talented people running the various divisions in our executive leadership team. Uh, and they seem to handle it pretty well, but there are plenty of times. In fact, I tell you when this is over, I have to deal with some emails that came across my, my screen this morning where I’m going to have to do just that. I’m going to have to sit down with a couple of people and say, I know your priority is here and so is yours. Let’s talk it out.

Brandon Burton (04:20.366)
Yeah.

Brandon Burton (04:45.326)
Yeah.

Bob Durkin (04:47.039)
So it’s no different really in a sense that whenever you have a complicated organization, there are always going to be different people. Your staff to their credit wants theirs to be the best. we are really lucky. I’m blessed, Brandon, with talented people across all these different divisions.

Brandon Burton (05:05.42)
Yeah, it sounds like you are to be able to keep it all working and coming together in a unified direction.

Bob Durkin (05:12.063)
Yeah, well, I started this job 13 years ago. had a head of hair like Geraldo Rivera. And now it’s here. You see what happens. Boy, is that a dated reference, huh? I might have said like what, know, somebody from the early 1900s for all that.

Brandon Burton (05:17.774)
For those that are watching, I love it.

Brandon Burton (05:31.983)
Right. The 1900s, man. So you had mentioned the Lackawanna Industrial Fund Enterprise, how there’s a significant amount of liquidity in there, but then you also have the Neighborhood Development Trust Fund. can you talk about the… I’m anticipating that there’s very different purposes for those funds and how they’re deployed. So yeah, share with us about that.

Bob Durkin (05:54.72)
Yeah. Yeah. Yeah. I’m sure you know from talking to other chambers that they know the wave of creating foundations, supportive foundations for the chambers is really strong right now. And in essence, we are blessed to have several resources that sort of predate that even that movement on the local or the current chamber wave. So with life,

Brandon Burton (06:07.192)
Yes.

Bob Durkin (06:24.671)
Again, in its heyday, it was this source of capital for local manufacturers. But once that changed and really NAFTA really put an end to all of that, where we had once had literally a hundred different small manufacturing operations in the Valley, and literally all of them are gone now. And so basically, my predecessors started to look at the funds, the life funds as it were, and said, well, how can we use those in the greatest way?

Brandon Burton (06:30.894)
Who was that?

Bob Durkin (06:54.653)
most useful way and it really has come down to, well, let me back up for a second say this, the good and the bad of having all of these affiliates in the chamber world. So some of them, especially the three key 501C3s, and for us that would be MetroAction, our lending arm, Skills and Scranton, Workforce Development, and Leadership Lackawanna. Well, these are entities that could otherwise stand on their own.

Brandon Burton (07:06.478)
So, I’m just going to this progressive movement, and not only be a positive movement, but a positive movement.

Brandon Burton (07:19.758)
or if you have a group of people that are scared of trauma, you can put them in the front of your face and you’ll be fine.

Bob Durkin (07:24.671)
They’re second 501c3s. They have their own boards. They could otherwise be out in the world of a nonprofit world raising their own funds. But because they come under the Chamber of Derelo, then the community knows that. Let’s say some of our strongest supporters, banks or larger businesses, always look at it together.

Brandon Burton (07:36.846)
Right. that because these months have been too long, we can say at the cost of that the states will have rather more balanced response than they should have for businesses.

Bob Durkin (07:50.144)
And so when we go to them and say, you, you here’s your chamber membership and here’s the sponsorship we want for the annual dinner or for this event or that event. And then, then we say, Oh, by the way, leadership like Juana is going to come back to you and say, we want you to sponsor this. And they say, but you’re the chamber. You’re all part of the chamber. So the result is that some of the smaller 501 C3s that are under our umbrella have their hands tied. Um, I can’t, you know, if they came to me and then said, well, we’re having our workforce summit through under skills and Scranton.

going to go to the biggest supporter of the chamber, bank X or company X. And we say, no, don’t do that. We’ve already tapped them out on these other things that we’re working on. So because of that, those smaller ones need support. that’s where life often comes in. Every year, and again, it’s out of scale, unless you know all the budget stuff, it may not make sense, but life contributes about $200,000 a year to the chamber. Part of that is to pay for

Brandon Burton (08:23.182)
you

Bye!

Brandon Burton (08:32.056)
So, that was a good, not a bad, beautiful, so thank

Brandon Burton (08:44.259)
you

Bob Durkin (08:49.951)
the building that we are in because life owns our building. That’s just complicated side note. But about $100,000 from life then, think of it as a foundation, as an internal foundation. So $100,000 a year goes to our operating fund, not to support the chamber per se, but to support those nonprofit, small nonprofits under the chamber. Because we’re telling them, don’t ask for more money from somebody else, we’ll simply support it.

Brandon Burton (08:53.966)
Okay.

Brandon Burton (09:00.546)
Yeah.

Brandon Burton (09:11.598)
We have a lot of people who are not interested in the internet. So if we can a lot of money from the internet, it would job for me.

Bob Durkin (09:17.471)
So we use life as our ballast, our financial foundation. say, if there’s a loss, we simply go to life and life will take care of the loss.

Brandon Burton (09:28.384)
I like that. That’s great. A great structure to have there and to be able to just keep things cohesive as an organization. I noticed that you have life set up as a 501C4 versus a trust fund as a C3. What’s the, lot of people listening, they’re going to be familiar with the C3 and the C6, but talk to us a little bit about the C4 and why that is categorized as C4.

Bob Durkin (09:46.176)
Yeah. Yeah. Yeah. Yeah. See, again, C4s are economic development organizations and that’s really just a legacy issue. So when life, the Spranton plan and Slipco were created post-World War II, the two of the three were set up as C4s because life was a lending enterprise at the time. It’s an interesting question to ask because we’re in the midst of a strategic plan right now.

Brandon Burton (09:58.466)
Okay.

Brandon Burton (10:02.99)
you

you

Bob Durkin (10:15.871)
And the question some of our board members are asking is exactly that. Should we switch that? Should we turn it into a C3, make it a pure foundation? And we may go down that road. I will tell you the reason that I like it in its current structure is our hands are not tied by some of the IRS rules that would apply to a foundation, depending on whether it’s a public trust or a private trust where the assets

Brandon Burton (10:37.23)
So the basic thing I want to put in place for the pilot test, we’re going to use the differential of two cases. That’s the big thing we need to do to the So you’re going send it from the main figure you offer, and you’re going to turn it into an axis. And that’s the most important part of the pilot part of process. And it’s going to be done in next couple And I’m doing the pilot test, and you’ll be able to have a better look.

Bob Durkin (10:44.061)
have to be maintained at a certain level. I happen to sit on a major foundation board and the challenge we have there is we have a fiduciary responsibility to maintain the corpus and so you can only spend so much money. Well, by having it in our current state the way that we have it set up with life, hypothetically with, you know, $7 million or whatever we have there, if we wanted to spend $5 million, we could. We don’t have a fiduciary responsibility to maintain the corpus.

in its current structure. But since we don’t foresee that need, we’re going to, for our strategic planning process, we’re going to review that and determine if it makes more sense to turn those assets into a foundation on a C3 at all. So it’s a good question. It’s a really good question because it fits what a lot of people are talking about in the chamber world right

Brandon Burton (11:27.381)
Yeah,

Right. With the foundation structures. so I feel like we’ve, we’ve touched on a lot of the, upside, the reasoning, why you have these different affiliates broken out and the way it’s organized, the way it is. I can see for those listening, they’re like, man, that’s a lot of, a lot of work to keep these different balls juggling. mean, if we’re being honest, chambers are juggling different balls or plates or whatever you want to say you’re juggling at any time, but what are.

maybe some of the downsides to having these different affiliates broken out like this. And you talked a little bit about the conflict that might arise and different goals kind of headbutt against each other, but what else might you see or warn against?

Bob Durkin (12:07.711)
Yes.

Bob Durkin (12:12.349)
Yeah, yeah, I mean, there’s an inherent element of creating silos, you know, where people just feel like my program area is the best, mine’s the most important. And so from a management standpoint, I’m always sensitive to that. And it’s no different in a sense that when you’re managing multiple people and personalities, you always have to say, you know,

Brandon Burton (12:20.407)
Yeah.

Bob Durkin (12:39.975)
By the way, if anybody says, it says, well, I treat everybody the same, you know, was it, I’m trying to think of things to talk about Vince Lombardi. And one of his players said, he treats us all the same. He treats us all like dogs. it’s just like, whether it’s an organizational relationship or a personal relationship with staff, have to recognize people’s strengths, weaknesses, and the nature of their personalities. So I’m from my, my seat, I’m always sort of balancing that.

Brandon Burton (12:51.692)
Hehehehehe

Bob Durkin (13:09.769)
who needs to be coddled, who needs to be yelled at, who needs to be hands held, who needs the freedom to do things on their own. it’s a challenge. I like to think that I, and really I’d say our management team does a good job of that, but on a regular basis, maybe a weekly basis, we run into some sort of challenges along those lines in terms of the balance. From the community standpoint, from the outside looking in,

Brandon Burton (13:09.965)
Yeah.

Bob Durkin (13:38.592)
I do like that people recognize that this organization has so many tools that are in our tool chest. And that is both good and bad because you know the old rule, like if you’re, know, the reward for good work is more work. And so, for example, in the vernacular of the chamber world, our program of work,

Brandon Burton (13:54.319)
Remember, we’re here to help. There are always more people who need your help.

Bob Durkin (14:07.103)
Then we have the strategic plan and then we have our annual program of work. And, and I, I said this to the board and the executive committee, which really, you know, is our driving, you know, management component. I’ve said this over the last couple of years to them. said, know, we do the program of work and for us, that’s a July to June program year. So in like May or June, we approve next year’s program of work. By the time we are six months into that, I can tell you.

Brandon Burton (14:13.762)
This is some water that we have use as a dip through dry lay to make…

Brandon Burton (14:28.92)
So, we’ll try our best to see if we can do it.

Bob Durkin (14:35.923)
The work of the organization, there’s a third of the work that we do, sometimes more, that isn’t even on the program work. And it’s because the community recognizes the value of our team. And so when there’s an issue, and right now, for example, we have an issue with hospitals. I mean, a lot of our brethren across the country are dealing with this, particularly in communities of the size of Scranton. We have three hospitals and two of them were on the verge of being shut down.

Brandon Burton (14:43.266)
Yeah.

Bob Durkin (15:03.165)
because the parent company was walking away. was a private enterprise. Well, so last year I probably spent easily a third of my time working on with a group of community leaders to keep those hospitals open, including a substantial financial contribution to make this work. That was never even on our program of work. You know? And so, so the good, again, the good and the bad, we’re proud of the fact that the people turned to us to be among the leaders to try to save the hospitals.

Brandon Burton (15:16.782)
Right.

Bob Durkin (15:33.272)
and, then again, what do you do with the rest of the work plan? And, you know, and there’s, could, I could point out probably every year in the last four or five years, particularly since COVID, well, COVID’s probably the best example. When COVID hit, we became the enterprise to coordinate. were part of the emergency management network for all of Northeastern Pennsylvania, not just our county or our chamber, but all the surrounding counties and their chambers. We became.

Brandon Burton (15:37.418)
Yeah.

Brandon Burton (15:47.351)
Yeah.

Bob Durkin (16:02.471)
the central source for, you know, holding up a lot of things like, know, when the SBA was coming on with the PPP and all the other, you know, both health and business elements that were being played out. We were central to that for about a six county area. I know, you know, in partnership with our local, our friends in the other chambers, but we’re still the biggest and, you know, we had greater capacity. so the good again,

Brandon Burton (16:11.064)
Yeah.

Bob Durkin (16:31.807)
Sorry if I’m all over the map on this, but it’s a good and bad of being the big dog. Everybody wants you to do something, including every elected official. And we’re happy to do it where we can. We’re proud of it and we’re proud of our success. But there’s only so much we can do. Exactly. Yeah.

Brandon Burton (16:32.238)
there.

Brandon Burton (16:40.706)
Yeah.

Thank you very much.

Brandon Burton (16:47.404)
And I get that and sometimes you have to say no because it doesn’t fit within the mission and whatever. But at the same time, if you say no to helping a major employer who’s about to walk away, that’s not a good look for the chamber either. So you got to adjust. Yeah.

Bob Durkin (16:56.969)
That’s right. No, no. You know, the local, air, the regional airport needs our help. The, we’re in the process of trying to get to reinstate the passenger transportation from Scranton to New York City, which for us, that’s about it. That’s about a two hour. It’s a, you know, two, we’re about two hours from New York, two hours from Philly in Northeastern Pennsylvania. And so who’s in the middle of the Amtrak proposal, but the chamber. And that wasn’t on our books three years ago, but it is now.

Brandon Burton (17:26.062)
Yeah, yeah. Well, in interest of your time, I think we need to start wrapping up, but it’s been a great discussion. I wanted to ask on behalf of listeners who want to take their organization up to the next level, what kind of tip or action item might you share with them as they strive towards that goal?

Bob Durkin (17:27.039)
So, yeah.

Bob Durkin (17:32.703)
Okay. Okay.

Bob Durkin (17:46.782)
Well, again, I mentioned before, and I’m proud of my professional association and personal association with the team at ACCE. I think that it’s among the best assets. When I came back into the chamber world, and as you read my bio, I was vice president of this chamber back 35 years ago, left for 20 years to do other things, and then came back 13 years ago. And that’s where I discovered ACCE.

I would say anybody who has any interest in figuring out, you want to expand your programs or do you want to contract them? The best asset, the best resource that I know of is ACC. And that’s, and it’s both, you know, their leadership in Sherry and Kelly and others, but also is equally important is the networking. You know, we’re part of the major cities council of ACC. I’m very active with that.

Brandon Burton (18:28.206)
Yeah

Brandon Burton (18:40.014)
think this now is in control. Have a nice day.

Bob Durkin (18:44.901)
and so whenever I have an issue on these types of things, I now have on my contact list, I used to say Rolodex because I’m an old man, but, you know, my contact list, I can pick up the phone or I can shoot an email or whatever for a handful of really smart, talented, and eager friends and colleagues, because there’s always someone out there who’s done what you’ve done. And, I’m happy to be that resource for anybody who may be listening and seeing our structure.

Brandon Burton (18:46.03)
you

Brandon Burton (18:51.182)
that’s right.

Bob Durkin (19:14.055)
and wanting to know if they should follow this course, I’ll, I’ll tell them the good and the bad. That’s, that’s what’s, you know, that’s what’s so great about chamber world, right? You know, people, people sometimes say, well, all you chamber people are all type A personalities and whatever else. Actually, no, we’re not. We are just like anything else. We’re a mix. You know, we’ve got both extroverts and introverts, and we’ve got people who are task people, and we people who are, you know, want to be talking, you know, a bag, the big

Brandon Burton (19:19.619)
Yeah.

Brandon Burton (19:25.981)
So thank you.

Bob Durkin (19:42.91)
hairy audacious goals and some want to make sure that you’re blocking and tackling. I’m mixing my metaphors here, right? I’ll use the blocking and tackling because I see you’ve got a football in the 49ers helmet behind you. But that’s what’s great about the chamber world, right? If you really, I always say this, if you know if someone is meant to be in this world, because we all do act the same way, we can be the spokesperson, or we can be the worker bee, you know?

Brandon Burton (19:44.11)
That’s right.

Brandon Burton (19:53.9)
That’s right.

Brandon Burton (20:11.022)
Yeah.

Bob Durkin (20:12.159)
We’re a hybrid that can do whatever you need for the moment.

Brandon Burton (20:16.918)
Yeah, exactly. So I’m sure you’ll bring ACC into this response as well. But I like asking everyone I have on the show about the future. So how do you see the future of Chambers and their purpose going forward?

Bob Durkin (20:31.507)
Yeah, I think that both versions of the Horizons project, the original and the most recent one, I think have very, very strong elements that portend where we’re going. But then like everything else, as I referenced before, we do our annual work plan, we do our strategic plan, we do our annual work plan, and then okay, throw it out the window because something else happens. And AI, of course, stands out.

Brandon Burton (20:59.438)
See next time.

Bob Durkin (21:01.019)
And for us, the way, AI slash data centers have become, you know, the discussion of the day. and, and they, they threatened to change a lot of what we have thought about how we as a chamber operate and how we as community based organizations connect with the community and in what way we do. So, I think that using the data data center issue as an example, because right now we have.

Brandon Burton (21:21.454)
Thank you.

Bob Durkin (21:29.919)
Probably six different organizations and ourselves included as a developer talking about and dealing with the idea of creating data centers in the community. And, uh, there’s pros and cons to this thing and the community doesn’t know what to do. So we have to step in and we have, we have edu, we’ve, we’ve brought in people to educate elected officials. We have taken people from literally a bus ride from Scranton to Northern Virginia, which is data center alley to a Loudoun County, Virginia.

Brandon Burton (21:35.566)
I’m on it.

Bob Durkin (21:59.434)
to learn about this. So we have to play that center role in terms of the future and how AI is going to impact us and our communities. And I’d say the same thing applies on the political spectrum. have to, know, Mick Fleming, the late Mick Fleming always said, you know, we’re the same center in the political arena. And today that’s a tough place to find yourself, but we have to be that same center.

Brandon Burton (22:01.614)
So, think that’s the center of the whole thing, the state of the world, the universe, the universe. And it’s actually on the end of my life, where it’s the reaction, where it’s the reaction, it’s probably the reaction.

Brandon Burton (22:22.99)
So that’s the sense of the energy that we use.

Bob Durkin (22:28.051)
in the political arena, we have to say enough of these extreme positions and let’s recognize what’s best for the community. And that’s always, you know, compromise and moderate moderation.

Brandon Burton (22:41.091)
Yeah. Am I seeing a possible data center in the future as an affiliate for the Scranton Chamber?

Bob Durkin (22:49.247)
Well, not as, yeah, I mean, we hope as members, they darn well better be. Yeah, it’s this, this is really a, we are a test kitchen, as it were for for this right now, because we happen to be, we’re a valley. And the main power lines for the PJM grid that serves Northeastern United States comes and runs right across the top of our valley.

Brandon Burton (22:53.204)
Yeah.

Bob Durkin (23:18.705)
And so we’re a very popular spot for data center development. But we’re also a settled residential area. In Northern Virginia, for example, it was agricultural space. so open space that they filled in with these big buildings, it doesn’t work quite as well when you’re trying to build these facilities next to neighborhoods or in areas that are not industrial.

Brandon Burton (23:43.49)
Yeah

Bob Durkin (23:44.786)
It’s it’s it’s it’s a lesson for the country. If anybody’s interested in I’m more than happy to share with our current experiences. But I’ll go back, Brandon, you asked the question earlier about how do you balance that chamber versus development side? Well, that’s that’s one of those nexus areas where we’re having a challenge because on the one side, on development side, we’re saying yeah, job creation for for the trades and revenue return to the communities. Not a lot of big jobs in the buildings themselves, but

Brandon Burton (24:00.739)
Yeah.

Bob Durkin (24:14.399)
you get it on the front end and the back end. And then the chamber side is saying, well, it’s all about our community. And the community is going crazy saying they don’t want data centers. So it’s balance.

Brandon Burton (24:23.586)
Yeah, yeah. Absolutely. Well, Bob, this has been great. I wanted to give you a chance to share any contact information for listeners who do want to reach out and learn more about your structure or anything you’ve covered today. Where would you point them and what would be the best way for them to connect with you?

Bob Durkin (24:39.155)
Sure. Well, the obvious starting point is our website, www.scrantonchamber.com. Our phone number is 570-342-7711. I’m extension 118. You can find me on our website and through those other contacts. We’ve got a great team. If I can’t talk to you directly, I’ll find someone on our team to be able to help you with any questions you have.

And you can also find me at any of the major ACC events. We’re always going to be at the national conference and I’m always also going to be at the major cities as well. So happy to be a resource for any of my friends and colleagues.

Brandon Burton (25:14.924)
Yeah.

Brandon Burton (25:22.318)
Very good. Well, we’ll share that in our show notes for this episode. again, I appreciate you spending time with us and sharing the structure and how you guys are approaching things there in Scranton, the greater Scranton area. It’s a great example and something that we can learn a lot from and how we structure and look to the future as well. So I appreciate it.

Bob Durkin (25:31.614)
Okay.

Bob Durkin (25:48.52)
Right, so it’s been great to chat with you.


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Chamber Foundations with Jeff Meredith

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Below is an auto-generated transcription. Because this is auto-generated there are likely some grammatical errors but it is still a useful tool to search text within this podcast episode.

Feel free to join our Chamber Chat Champions Facebook Group to discuss this episode and to share your own experiences and tips with other Chamber Champions.

Brandon Burton (00:00.942)
Hello, Chamber Champions. Welcome to Chamber Chat podcast. I’m your host, Brandon Burton, and it’s my goal here on the podcast to introduce you to people and ideas to better help you serve your Chamber members and your community. Today’s guest is a true force in the world of Chambers and community development. Jeff Meredith brings over 16 years of experience in the Chamber industry, earning his IOM designation in 2017 and completing his MBA in

in 2022. In 2023, Jeff made the leap into full-time economic development where he’s already helped his community secure more than 3.5 million in grant funding. Known across the chamber world as the Foundation Guy, Jeff has guided over 50 chambers through the process of establishing 501c3 foundations. On top of that, he offers nonprofit consulting services

Helping organizations with everything from getting started to reviewing bylaws and performing financial analysis. Jeff’s strategic mindset and deep expertise make him a go-to resource for Chambers, nonprofits, and communities looking to grow stronger and smarter. So get ready to take some notes. But Jeff, I’m excited to have you with us today here on Chamber Chat podcast. I’d love to give you an opportunity to say hello all the Chamber Champions who are out there listening and

to share something interesting about yourself so we can all get to know you a little better.

Jeff Meredith (01:30.15)
Sure, well, Brandon, first of all, thank you for hosting me and for all the Chamber Champions watching this show. Again, Jeff Meredith, he’s already introduced me some. But a few things that you all might not know about me from within the Chamber world is, in addition to my full-time economic development job and a side hustle as a consultant, I also very much enjoy refereeing soccer.

It’s mostly a lot of youth. I tend to do U15, so basically not high school. I also do adults. I do speak English and a pretty solid Spanish, which is very useful in the soccer world, especially here where it’s 35 % Hispanic. It’s always interesting when I am referring because I don’t necessarily tell people I speak Spanish.

Brandon Burton (01:53.921)
Okay.

Brandon Burton (02:12.803)
Yeah.

Brandon Burton (02:19.183)
That’s smart.

Jeff Meredith (02:22.298)
But I do give a warning because there are certain things that if you, for example, you curse at me and say certain words, I show a red card and I send that person off.

Basically, they’re done for the day. I usually give a warning when someone says such a thing in Spanish to let them know I do know what they just said now and they should not say that again. And I normally just kind of tap the red card as I pull it out of my pocket to remind them that I do have these available. So a lot of soccer roughing. Anyway, not much spare time in my life, but I enjoy it and I stay busy. So yeah.

Brandon Burton (02:50.178)
Yeah.

you

Right. So where did you pick up Spanish? How did that become something that you could add to your…

Jeff Meredith (03:03.098)
It’s actually funny, when I was first going to college for my bachelor’s, I was studying to be a bachelor’s, again, a bachelor of arts in history. For a BA, you have to have four semesters of one foreign language. So I chose Spanish. During the day, I had the book work, but at night, I actually was working in, well, Ryan’s family steakhouse, which is now bankrupt.

or no longer in existence. And one day they said, hey, this is Antonio. He doesn’t speak English. You guys are going to work together. So I was able to have the book work during the day, speak Spanish at night. And honestly, since then, I’ve used Spanish in several different restaurants. I can tell you stories about how I used to get free cake for speaking Spanish because I was a server.

Brandon Burton (03:28.696)
Yeah.

Brandon Burton (03:49.752)
Yeah.

Jeff Meredith (03:52.41)
They said, we need to speak Spanish. I said, no, like we’re paying you like, uh-huh, $2.13 an hour. That’s not a skill. Bring in a translator. It’ll cost you more than the five bucks for the piece of cake. So I got lemon cream cake from Olive Garden anytime I had to speak Spanish.

Brandon Burton (03:52.717)
Yes.

Brandon Burton (04:05.133)
Right?

Brandon Burton (04:10.542)
That’s great. I love it. Well, this is the point where I usually ask you to tell us about your chamber. since you’ve kind of shifted focuses professionally, tell us what your chamber background was and kind of the size of chambers you worked with and that sort of thing to kind of set the stage for our discussion.

Jeff Meredith (04:13.924)
Yeah.

Jeff Meredith (04:33.094)
Sure. So I have worked for two different chambers. My first chamber was the Joplin Area Chamber of Commerce, which is a larger chamber. At that point in time, they had approximately 1200 members. I think total staff of 17 or 18 in the building between the various economic development entities that were present there. And when I started, I was the administrative assistant. I didn’t know how to spell. I didn’t know what chambers did. I wasn’t sure.

Brandon Burton (04:34.542)
Sorry.

Jeff Meredith (05:01.195)
and but I discovered it was something I was decent at. I’m a friendly guy and then I got promoted to be member relations at the Joplin Chamber.

Brandon Burton (05:03.726)
Thank

Jeff Meredith (05:09.914)
While there, the Joplin tornado came through, 2011. And so that brought me some experience in dealing with disaster recovery, seeing what the community did. And then approximately year later, I did go to Monette Chamber, which is a small chamber. The chamber itself had a staff of two, but because we had a very good non-due revenue stream, we actually had more employees and it was, we were able to accomplish a lot because we had a nice budget.

Brandon Burton (05:10.35)
Well, I’ll you in the next one.

Brandon Burton (05:15.906)
So,

Brandon Burton (05:28.302)
and self-cultivation.

Jeff Meredith (05:39.75)
So I’ve spent two years in the small chamber and was able to leverage all of the financial resources available to complete all kinds of professional development while there.

Brandon Burton (05:40.142)
And there it is.

Brandon Burton (05:46.223)
and so they’re successful in a number of first of all. Very good. I remember seeing you at MAKO conferences and things like that over the years. So that professional development pays off.

Jeff Meredith (06:01.03)
I was on the Mako board for, I don’t know, five years, I think. In fact, I was past chair the year we canceled Mako because of COVID. Yeah.

Brandon Burton (06:06.444)
Yeah.

Brandon Burton (06:11.63)
Yeah, there you go. So it’s fitting that our topic for discussion today is going to be all about foundations, since we’ve got the foundation guy on the show. So we will dive in deep on that topic and what it takes to start a foundation and all things foundations as soon as we get back from this quick break.

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All right, Jeff, we’re back. As I mentioned before the break, today we’re diving in on foundations.

You’re the guy to have on the show to talk about foundations. So I know chambers throughout the country, pretty healthy amount have foundations now. Some of them are pretty new. Some have had them for a decade or more. And then there’s another big segment of chambers out there that just aren’t sure where to start with the foundation or how to make use of a foundation or any of those things.

Let’s talk specifically to, I’m thinking mainly that segment of where do I start? How do I use a foundation? But even for those that have foundations, I’m hoping there’s still good value that they can lean out of this as they see how they can better leverage their foundation. we can start where you want to start, wherever the best point is. I’ll let you decide on

Jeff Meredith (07:34.726)
Sure, so, and I can just kind of ramble on for a minute, Brandon, and obviously if you’ve got questions, please pause me. I’m rarely at a short for words. So as far as where to start with foundations, I mean, let’s just kind of start with the basics. When I’ve had these discussions with chambers and their boards,

Brandon Burton (07:41.218)
That’s perfect.

Brandon Burton (07:45.038)
All right.

Jeff Meredith (07:55.794)
I remember one time someone said, so why? Let’s keep it short, Jeff, or we refer to things. Keep it succinct. Why should we do this? And if I had to do it in three words or less, it would be one word, which is money. A 501c3 has access to funding that a 501c6 simply can’t touch.

This is available through grants. Other 501c3s can give to you if you have a 501c3. In some states, you get tax exempt benefits for the c3 that the c6 does not get. And you can also get donations of things from various corporate entities in the country if you have a 501c3. And it’s just really kind of a money thing. So that’s where I would start. And some say well.

Brandon Burton (08:31.15)
This is not the end. We must forget the actions of the farmers, the families of the people of the country. And if you have a thought, look, the values of the

It’s where I live, it’s where I come from. And so I’m home. And I’m home, and I’m done with this.

Jeff Meredith (08:49.862)
How do I know if I can get money with a C-3? I mean, this may be a little bit of a tip as well. Ask. You know, most chambers, you probably have a board of directors for local leaders. Find out if there are 501 C-3s or charities in your community. You can also look some things up. You can Google if there are simply charities in the area.

Brandon Burton (08:57.838)
to to really want to travel to a smaller country. But I want to find a place to experience the beauty of this unique country. But also to think about the people who are so unique. Most ancient long-distance travel is happening in the world. This is where the time travel for the world can be. But it’s in the right hand. It’s in the past. But the world is still coming. And we have not lost it.

Jeff Meredith (09:12.75)
Most major corporations have their own charitable giving because it’s a way to take money from their left hand, put it to their right hand to receive a tax benefit for it, and then actually still direct their giving as well by passing from their right hand. So, that’s a good place to start.

Brandon Burton (09:26.988)
Yeah. I know Dave Adkinson and his book Horseshoes versus Chess calls out the importance for Chambers to have a foundation. And he gave an example, I can’t remember which chamber was that he worked with at the, or that he was at at the time where this happened, where he established the foundation. there was a family in their community that had a significant amount of wealth. And there was the

Basically the last remaining member of the family was getting ready to pass away, didn’t have heirs to leave it to. And because they had a foundation, that was a landing place where a great sum of money came into. It wasn’t everything, but it was a good sum of money because they had the structure to be able to receive it. And obviously they’d been doing the work in the community to show their value and build that trust for a family to want to.

to leave money to the Chamber Foundation. But yeah, it all comes down to money and being able to be a valid recipient of that money, whether it’s grants or these other examples that you put out there. So when it comes down to money, maybe it would be helpful just to talk about some ways that Chambers utilize foundations. I’ve seen some with

you know, that are chambers and they’ve got the economic development responsibility, which that seems pretty obvious in ways that they can utilize that. But if you’re a standalone chamber or if you’ve got tourism or economic development, what are some, some ways that are good utilizations of a foundation?

Jeff Meredith (11:09.606)
Sure, so most chambers, 70 to 80 % of what a 501C6 does could actually be a usage of a 501C3. And I start to think about what I see communities and chambers doing. There’s maybe some workforce programs.

that might be available. A lot of chambers they might give away a small scholarship to someone graduating from their school. Maybe they have a leadership program that they’re hosting currently. Foundations are good ways to offer this sort of thing because

There are, again, by leveraging those funds, you can get some sponsorships and some donations from some of these entities to support that same workforce program that you were doing before. And then you can actually kind of help fund it onto the chamber side.

Economic development is a prime example of something that a 501c3 is helpful for. In fact, sometimes you might even want to have more than one c3 set up that you have some control and access to because they’re for different purposes. And you can actually start to get really convoluted where you are having transactions between them based upon who’s doing what.

For example, where I am now as an economic development organization, we are a 501c3. So I can certainly speak to that degree on some of the things. As a c3, I’ve been able to leverage that status, again, to get grant funding for community development projects. And not because I was in economic development org, but because of the c3. Things that I’ve seen some chambers do that my EDO has done.

Brandon Burton (12:31.818)
Thanks.

Jeff Meredith (12:53.344)
is maybe you need to get a housing study done for your community. Perhaps you’ve thought about getting a hotel study done for your community. Let’s determine what that looks like for those areas. I got a grant from a governmental entity to pay for half of those studies that I was able to match with a private grant. And it was a rural development funding opportunity. Simply because my community was less than

Brandon Burton (13:15.747)
them.

Jeff Meredith (13:21.798)
50, 20, something, the threshold was higher than 15,000 because we were below where we are. And again, that’s a funding opportunity to do something that the Chamber wants done to support your businesses and members, but you don’t want to have to pay for it yourself.

Brandon Burton (13:23.342)
Sorry.

Brandon Burton (13:27.874)
Yeah.

Brandon Burton (13:40.056)
Good.

Jeff Meredith (13:40.858)
Those are the opportunities. The same thing with the educational side. In fact, if you have a chamber foundation, in addition to providing educational courses to others, I’ve seen some that leave their own foundation to pay for their own institute experience.

Brandon Burton (13:46.41)
you

Brandon Burton (13:50.031)
Yeah, that’s good examples.

Jeff Meredith (14:00.364)
It’s professional development, education related, as long as you don’t specify, must be for high school students or children or something such as that. It’s still a perfectly legitimate use.

Brandon Burton (14:17.388)
I’ve seen some that have the economic development contracts, responsibilities as well, use it to acquire land as they are attracting a big industrial company to make a move to their community. then able to refund that, know, get that money recouped once the transaction is closed, but the chamber is able to be that instrumental piece in being able to make the deal work out. So lots of different ways.

to utilize the foundations.

Jeff Meredith (14:48.888)
Yes. And a lot of it, again, you’re doing similar programs. It’s just under a new umbrella. And that new umbrella just gets a little more favorable look when you start talking about some of these funding opportunities. I mean, some of the grants that, you know, the 3.5 you mentioned in my introduction, the first one of those was a million dollars from a trust that I was able to leverage for a million five that I could get for the city.

So I mean, put together five, you know, was ultimately a $5 million purchase between public and private funds my first month on the job, simply because we had the 501C3 and there’d been some planning done.

Brandon Burton (15:27.17)
Yeah, yeah. So for those listening, some may be intimidated at the idea of starting a foundation. I mean, they’re already busy at their chamber, right? Trying to keep their head above water. So what does it take to establish a foundation? What thought, what kind of planning needs to go into that? Who’s buy-in?

Do you need to be able to do something like that? What would you suggest?

Jeff Meredith (15:57.798)
Sure, so typically when most people start thinking about a C3, it’s either something they’ve had on their mind, they’ve seen a lot of these discussions, maybe they went to a training of some sort. So typically you need to get the buy-in of your chamber board upfront. Because the chamber board, you’re gonna need some startup cash to start a C3 and the chamber is a good source of that funding.

And while once you actually get the new entity set up, the chamber board no longer governs that entity, they’re still usually going to sign off on the bylaws to some degree and obviously the donation of the funding to get that going.

Brandon Burton (16:26.104)
Thanks.

Jeff Meredith (16:38.958)
Outside of that, it starts to be what is it you’re wanting to do that your C6 can’t do? Is there a pot of money you’re hoping to access out there? Is there a new program? Has someone said, will give you money if you have a C3 and do this? Again, just go ahead and ask people. Talk to your major employers. If we had a C3, that open up opportunities? And start that discussion.

Brandon Burton (16:40.846)
and sort of like bursting out. we do to people, what we do citizens, what we do. What’s going on, what we do, what we do to ourselves. It’s your very own work. And someone’s own behavior, and you’re not just doing it for me. Thanks.

Brandon Burton (17:00.398)
I’m not going to lose. I’m going to win.

Jeff Meredith (17:08.806)
as far as the steps to actually create a C3. I mean, it’s you set up a corporation with your state and then you do some things with the IRS and you’re good to go. I mean, and I say that in a drastic oversimplification because I’ve done it a time or two, but truthfully, we can get the process done in less than a month if we can get the appropriate approvals on the local entities.

Brandon Burton (17:23.15)
So, thank

Brandon Burton (17:28.718)
So how about like establishing any bylaws or selecting a board or any of the structural elements of building a foundation? If you’re starting from scratch, what direction do you give?

Jeff Meredith (17:36.986)
And then you just wait for the IRS.

Jeff Meredith (17:57.223)
Well, first off, would in this day and age, I would never start from scratch on almost anything. You know, think about

Brandon Burton (18:03.778)
Great advice.

Jeff Meredith (18:07.898)
because again, there are groups out there, there are resources out there. mean, many states offer sample bylaws for certain organizations and entities. So that’s not a bad place to start. Since we’re focused on chambers, I remember that my chamber colleagues were always more than happy to rip off and duplicate a little bit of R and E.

And then you would just say, hey, I’m looking for some examples of this and then you can share them with that and you start to kind of decide what’s going to make sense. As far as your foundation boards go, your chamber board is a decent place to start for some of those members. Again, when I work with.

Brandon Burton (18:47.662)
I was going to ask, do you suggest utilizing some of the same board members or having it be a different makeup?

Jeff Meredith (18:54.274)
I utilize some of them. Now again, whenever I work with an entity, I say your foundation board should be a minority of which is currently on the chamber board. And there’s a specific IRS that says this because chamber foundations want to be a public charity, not a private foundation. If you want to be a public charity, a majority of your board cannot be related by blood, marriage, or business.

Brandon Burton (19:07.374)
and I’m going to be signing this. I’m to be signing this with the Proudly Stranger of the United States. Proudly Stranger of the States.

Jeff Meredith (19:23.174)
Now, I’m not a lawyer, I don’t claim to be, but if the reason people are all part of a different entity is simply because they’re serving on a board together, in my non-legal opinion, they are related via business. So I keep it a minority. And when some say, well, that’s what we want to do, I then question, do they not have any other willing participants in their entire town other than these 12 to 25 people that they have involved with their chamber already?

Brandon Burton (19:25.582)
Thank you.

Brandon Burton (19:42.014)
Excellent. Now we have a new program that discusses the importance of our lives. For which we find out about it.

Jeff Meredith (19:52.25)
You want to have some separation. And so then we start to pick out those other ones that you want because when you write your bylaws, because you’re starting from some level of scratch ish, right? Say who you want. My bylaws said we wanted someone from the school district and somebody from the city because we were going to do community economic development projects. I wanted that city. We did scholarship things. I needed that to the school district to promote my scholarships. Talk about appropriate.

Brandon Burton (19:57.327)
of the country and its people.

Brandon Burton (20:04.078)
So, I don’t know if that’s gonna be a good time for me. That’s all I have to say.

Brandon Burton (20:16.046)
As far as ongoing care and maintenance of the foundation, what is there to be considered there?

Jeff Meredith (20:21.968)
Now generally, we have the superintendent and the senior administrator, but they’ve got to pick who they want to trust. Find the focus and get the people that you’re looking for.

Brandon Burton (20:43.711)
And how involved, for example, as a chamber executive, how involved would they be with a chamber foundation on the day to day?

Jeff Meredith (20:52.614)
Sure, so as far as the ongoing maintenance goes, with a 501C3, there are two things, three things you’re required to do on an annual basis. You’re required to have at least one board meeting, and that’s just for standard corporate compliance. You are required to file a tax return of some sort, and depending upon your state, you have to keep your corporation active.

Now, some states only require that every other year or every three years I’ve seen. And as far as the tax return goes, depending upon your gross income, it could be a 990N, which takes, it almost takes you longer to log in to the IRS website than it does to actually complete the tax return itself. And if you’re making.

Brandon Burton (21:39.756)
That’s unheard of.

Jeff Meredith (21:41.286)
I know it is and I’ve helped people with that before and then they’re shocked how simple it truly is. So that’s kind of it and then as far as the involvement in well it all depends upon what you’re doing with this new tool. Are you taking programs the C6 was doing and you’re just doing them with a new hat on your head as the C3 then your workload’s not changing very much.

Brandon Burton (21:49.336)
That’s it.

Jeff Meredith (22:06.406)
Are you starting this new entity and because you have a C3, you’re suddenly launching new programs and new strategies or initiatives? Your workload will absolutely increase. But if by doing so, you’re generating enough funding to pay for an additional staff, then that’s a way to kind of help really maximize the chamber itself. And one benefit of having this relationship is,

The C3 can actually generate funding from various grants and sources and ultimately pay the C6 to actually carry out that scope of work as long as the fees being charged are fair and reasonable.

Brandon Burton (22:44.886)
So I understand some people are a little intimidated with the idea of grant writing and constantly be thinking about deadlines and applications and so forth. Is it worthwhile having somebody to run and manage the foundation separate from a chamber staff? Or I’m sure you’ve seen it done both ways, but what thoughts do you have around that?

Jeff Meredith (23:11.122)
I mean, again, if you’re growing that entity large enough, absolutely. Sometimes you could have a position you had already, perhaps a work first coordinator or something that maybe becomes the foundation director to some degree because there’s a natural crossover there. And if you’re a larger organization with a larger foundation, absolutely it makes sense because you’ve got the funding to support it. But if part of the reason, if you’re a smaller entity that’s trying to access fresh dollars from an outside source,

you creating a C3 to support the C6 and then having the sudden overhead of a new employee to manage it kind of defeats the purpose of leveraging that for the C6. I work a lot obviously with the multiple jobs we’ve talked about.

Brandon Burton (23:52.014)
All

Jeff Meredith (23:57.644)
and I’m cheap. whenever someone approached me at one point about, let’s throw in some money to help support a, at the time it was a Main Street director, I said, no, I don’t want to give my money to that, but I will work harder in exchange of not giving the contribution towards. And we accomplished a lot of things because we were able to do that. So every person is different.

Brandon Burton (23:58.134)
And that’s

Jeff Meredith (24:21.742)
I know some chamber execs, like to outsource a lot of their duties because there are experts in those fields. I’m more of a keep it in-house and reap the benefits and frankly learn along the way by doing so.

Brandon Burton (24:27.502)
for all those firms in this area.

Brandon Burton (24:36.8)
Yeah, just probably good advice. Keep it in house as long as you can until you get to that certain level and where it makes sense to hand off some of those responsibilities.

Jeff Meredith (24:46.438)
And you mentioned grant writing and things as well. I know that because there are some grants chambers can access and they say, well, I don’t want to spend the six hours or eight hours or whatever working on that grant application. And then I asked them, you know, I’ve seen one, was a 50, let’s keep it simple, $1,600 grant for eight hours of work. I don’t know of many chambers that are making $200 an hour.

Brandon Burton (24:54.21)
Yeah.

Jeff Meredith (25:12.806)
or that can go out and do anything else within their community to generate $200 an hour of return. So I believe that that is a great use of time and resources. And perhaps it’s just a different situation of prioritization versus allocation.

Brandon Burton (25:30.53)
Yeah, being able to shut off some of those other, you know, dings and lights and whistles and everything that beg for your attention when you’re busy at a dream group. That’s right. That’s right. Hunker down and get that application done. What other things need to be considered as somebody who’s looking to start a foundation and any pitfalls to avoid or things to look out for as they

Jeff Meredith (25:40.324)
I the cell phone out the door.

Brandon Burton (25:59.865)
Go down that path.

Jeff Meredith (26:01.806)
As far as pitfalls, I would just kind of look around and make sure there’s not some entity doing things you are already doing. And that’s not to say that maybe you can’t do it better.

But it’s an opportunity to, instead of setting up this whole new corporation, maybe partnering with an entity. Again, I’ll just go back to my time referencing the Main Street organization. We used the Main Street org to do a lot of community development activities for MONET because it had that C3 at the time. It was better known. It made sense. There were funding opportunities for that entity. Whereas we use the Chamber Foundation, which was also a C3 separately from, focused on just specific things.

So it’s really just kind of finding out what is that best usage. But I made sure that the C3 chamber was not doing downtown stuff. I wasn’t trying to take on any sort of facade grants or beautification or flowers or anything downtown. And we did a little bit of a mural project, but simply because the Chamber Foundation had the match, whereas Main Street didn’t.

and I guess this is just a secret to success for any community, you can accomplish a lot of things if you don’t necessarily care which entities actually getting the credit.

Brandon Burton (27:20.482)
Yeah, that’s a great point.

Econ Dev Ops is the virtual assistant service built specifically for small Chambers of Commerce and Economic Development Organizations (EDOs)

Jeff Meredith (27:23.278)
In fact, I remember once I was talking to my wife about something about, hey, she’s like, you’re working harder on that. I’m like, well, but it’s not. It’s the Chamber Foundation. And she’s like, you are a, you know, called me a name that I won’t repeat for your viewers. It’s still you. You’re just doing the work with a different hat on that day. Like, yeah.

Brandon Burton (27:46.456)
Yeah.

Jeff Meredith (27:48.09)
So Main Street’s getting credit for work that the Chamber Executive was accomplishing and the Chamber Exec was technically paying to do the Main Street thing, but it made the Chamber job better so it all worked out in the end. So if you have lots of entities, chat before you talk about setting up a new one, make sure that there’s not a crossover.

Brandon Burton (28:02.456)
Yeah.

Jeff Meredith (28:11.372)
know, maybe I maybe should get on the board of something else. Now ultimately we did have them separately because there were separate missions and separate purposes. So yes.

Brandon Burton (28:14.765)
Yeah.

Brandon Burton (28:22.08)
And how specific do those purposes need to be in the foundation when they’re established and how easy is it to change focus if you get in, you know, 10, 20 years down the road and things. What we originally set this up for is not so relevant anymore. Let’s shift focus. How hard is that?

Jeff Meredith (28:40.294)
Well, so I usually tell people, when you’re setting up a thing, to keep the purposes somewhat generic. So it’d be workforce, economic development, community development, arts, tourism, education. But then within this, because you have to also have the vague and be specific. should the IRS, depending on which path you’re choosing, if they come back and ask additional questions, if you say you’re going to do workforce things,

If someone says, what’s your workforce program? You need to have an answer of that workforce program is I’m going to go and talk to middle school kids about the job opportunities or about career fairs or interview skills or something, or I’m going to host a leadership program for adults. You don’t necessarily have to have that in place yet, but you have to have a plan versus just saying I’m going to do workforce things because it sounds good.

And then should your focus or vision change in the future, again, you can always go back and amend those articles. You can refile those articles in the corporation. And then with the IRS, should your NTE E code, which basically describes what line of business the foundation is in, should that need change, you can also update that with the IRS as well in the future. So it’s really kind of a thing of, and I know it’s somewhat contradictory.

Brandon Burton (29:55.469)
this week.

Brandon Burton (30:03.47)
This was my best.

Jeff Meredith (30:06.31)
You want to have it vague, but also have the ideas of the specific programs and things in your mind so that you can kind of go from the vague to actually make it real versus just this ethereal world out there of all the things you hope to do, and you know, actual planner idea on what it is or how to accomplish it.

Brandon Burton (30:06.862)
And also that they are very much in the group as the Foundations. So it’s kind of both a problem for us to deal with. And we’re a lot of work to help you. And we’re happy to help you with your work. That makes sense. Is there anything else that we’re missing when it comes to Foundations? I’m sure there are several things, but as far as these are concerned.

Jeff Meredith (30:29.062)
There’s lots of things we’re missing. So really, guess, just a key thing, and maybe this kind of goes into what might be a tip. With 2026, charitable giving has changed. Individuals such as myself, who generally take a standard deduction on their taxes because of the One Big Beautiful Bill Act.

and I’m married, in addition to my standard deduction of, I think, $31.5, I could actually take an additional deduction of $2,000 for giving charitable contributions. Now, that’s relevant because, A, for those people who want to make a little charitable contribution or have been in the past, you can now get a deduction for it. But more importantly,

for those who might think about a C3, you suddenly opened up the world of people who could get a terrible infection for giving to you from roughly, I think I remember it was 15 % of the population, you knew almost 100 % of the population.

Brandon Burton (31:30.35)
Yeah, that is a big deal. So yeah, I usually ask for a tip or action item for listeners who are trying to take their chamber up to the next level. Do you have something else beyond that that you wanted to put out there and offer for the audience?

Jeff Meredith (31:46.182)
Absolutely. And this one may seem like a foreign concept for some chamber execs because I remember we’re all hard workers, right? You want to get everything done that you can. When I used to do community events at the chamber, if the event made an extra $4,000 above budget or whatever, I did not get a bonus.

And this is relevant because I think in a lot of chambers, this is what happens. They can generate additional funds and frankly, we bust our butts to help an entity make a whole lot of cash, but in exchange, you’re not getting a dividend. Now I’m not trying to be selfish here, but what I’m circling back to is, I learned that instead of killing myself to stand underneath a tent for 12 hours on the 4th of July,

tying myself to that, I could pay someone, at the time it was $15 an hour, to do the same thing that then freed me up for additional tasks that were more important. In this case, at the 4th of July, as example, making sure that things weren’t going bad somewhere else, introducing bans and whatnot, interacting with my vendors who were paying me money to be there, and I wanted to make sure that they were fine.

So I’m not saying you should outsource everything, but there are certain skills that can be done by almost anyone. Don’t be afraid to find that because the old 80-20 rule, remember, 20 % of your job probably impacts 80 % of your actual performance.

Pick out those things that are most important to your job and your responsibility that someone else can’t do or can’t do as well as you and focus on those and those little things, especially with community events. Why work 16 hours for something when you could have someone do part of that job for a couple hundred bucks for the day and you’re better rested, you’re less stressed and frankly, the event goes better because now if you’re the face of the organization, they see you where you need to be.

Brandon Burton (33:22.734)
That’s

Brandon Burton (33:31.889)
And that’s how it is. This is the first time I’ve done anything like this. I don’t know how this gets to the end of the video. But you can have some of it.

Brandon Burton (33:43.47)
You must be one of those friends who really get that much fun because now if you have a fifth form of social, you’ll see that you’re not getting any less than what you’re talking

Jeff Meredith (33:52.472)
not sitting under attend, dealing with the rank and file attendees. that’s my work less hard and accomplish more.

Brandon Burton (33:58.807)
Yeah. I love it. I like asking everyone I have on the show about the future of Chambers and how do you see the future of Chambers and their purpose going forward?

Jeff Meredith (34:15.234)
I Chambers will continue to exist in the future. I think they are still an essential function and an organization and the services that Chambers provide are very necessary. Even if you just focus on the networking aspect, which is something that a lot of Chambers are very well known for, even as we have moved on to social media and during COVID and things with the distancing, I know that people love that human and social interaction.

So chambers will continue to be a powerful force and they just have to make sure that they find their niche to provide their services. Because chambers, like a lot of 501c3s, can do many different functions and still be legitimate and legal. So find the things that your community needs and someone else can’t provide and the chamber can maybe provide that service. So that’s good for the longevity of the chamber.

Brandon Burton (35:06.894)
That’s good.

Jeff Meredith (35:08.87)
It’s good for the future growth of the chamber and if it’s a service for which you get money, it’s also good non-due revenue for the chamber, which also ensures all of those things continue on in the future. So I think the chamber outlook is very good.

Brandon Burton (35:12.59)
Just like I said, I’m going to take it So I’m going to help you to tell us what you want to about all these things that you want. Yeah. I’m going tell you what going to Very good. Glad to hear that. Jeff, this has been great having you on the show. I wanted to give you an opportunity to share any contact information or anywhere you would point listeners who might want to.

Learn more about foundations or about how you might be able to help them. Where would you point them? What would be the best way for them to connect?

Jeff Meredith (35:44.07)
Sure. So, well, I’m always happy to connect with anyone that wants to more about foundations. My first consultation is always free. And if you want to reach out to me to get that discussion started, I am in central time. So I generally do these before or after my work hours or else at noon central time. So I kind of play a little time zone math there.

but you can find, I do have a website. My profession is not web design, so don’t hold that against me. It is jeffmconsulting.com. I do have a Facebook page of the same name, or if you’d like, can just send me an email, which is joplinjeff@gmail.com.

send those messages out. We’ll schedule a time that kind of works for both our schedules and let’s have a chat to see if a foundation is good for you and whether you decide to use my services or not. I’m always happy to answer questions on that first call.

Brandon Burton (36:24.814)
and I’ll you time.

Brandon Burton (36:36.612)
That’s perfect. We’ll get all that linked in our show notes to make it nice and easy to find you. But Jeff, thanks for spending time with us today and for going over these ins and outs of Chamber Foundations. think listeners will find this valuable and it’s a good one to have in the archives as well. So I appreciate it.

Jeff Meredith (36:41.851)
Awesome. Well, thank you.

Jeff Meredith (36:56.71)
Well, thank you, Brandon, and thank you to all you glorious chamber people. Have a wonderful day.


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Chamber Bitcoin Foundations with Brandon Burton

Miles Burdine Chamber Chat Podcast promo image.

Below is an auto-generated transcription. Because this is auto-generated there are likely some grammatical errors but it is still a useful tool to search text within this podcast episode.

Feel free to join our Chamber Chat Champions Facebook Group to discuss this episode and to share your own experiences and tips with other Chamber Champions.

Brandon Burton (00:00.824)
Hello, Chamber Champions. Welcome to Chamber Chat podcast. I’m your host, Brandon Burton, and it’s my goal here on the podcast to introduce you to people and ideas to better help you serve your Chamber members and your community. Our topic for this episode is going to be a little bit unique. It’s something that I haven’t really dove into on Chamber Chat yet. Typically, I have guests and

Given this time of year, we’re coming into the holiday season. I wanted to be able to give a little reprieve to the guests that I would normally have on and allow them to enjoy the holidays, but also to dive into what I see as an important topic for Chambers to be paying attention to right now so you can be better prepared for the future. So before I dive in,

In this episode, I am going to be sharing some ideas around Bitcoin and how Bitcoin can help strengthen the finance, the outlook, financial outlook for your chamber. But I do want to put out the disclaimer that I am not a financial advisor, that this is not financial advice. You know, all the disclaimers go along with that. What I want to do with this episode

is really just give you some exposure to Bitcoin, what it is, kind of a vision that I’ve had of seeing how Chambers can utilize Bitcoin in the long term and give you something to be able to talk over with your board, with your executive committee, with your accountant, see what makes sense for your organization and to look to some other models and

how they’re utilizing Bitcoin as well. without further ado, this episode, the thought came to me, chambers are always looking for long-term sustainable revenue streams and ways to strengthen their role as community stewards. that’s a long way of saying chambers are always looking to remain relevant, right? But as Matt Appenzeller,

Brandon Burton (02:22.881)
talked about as he was a guest on the podcast a few weeks ago, it’s not enough to be relevant anymore. You need to be forward thinking. You need to be looking at what’s coming next. And it’s part of my thesis, you can say, that Bitcoin can very much be part of that long-term sustainable revenue stream and way to strengthen your role as community leader. We’re seeing

around the country, around the world, major institutions, Fortune 500 companies, and even universities are adopting Bitcoin as a long-term strategic asset. And I’ll get a little bit more into that as we go along. But to kind of frame the thought process as we get into this, what would it mean for a chamber foundation to build a strategic reserve

designed for growth for decades, designed to grow for decades. Think about that, ponder on that. What would it mean for your chamber foundation to build a strategic reserve designed to grow for decades? This is big thinking, long-term thinking, and we’re gonna dive into it as soon as we get back from this quick break.

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All right, so before the break, I kind of set the table for you. Explaining what this episode’s all about with introducing you to Bitcoin and more importantly with how Bitcoin can be a great asset for long-term growth for your chamber, specifically for Foundation. So I’ll get into the details of it. I do kind have an outline that I’m going to follow. So as I go through the outline, it may seem like I’m reading some things, but I wanted to make sure that I had…

as much of the detail and reference points available as possible so I’m not missing anything. Bitcoin can be a complex topic. So I’ve been in it and involved with Bitcoin for nearly a decade now. So as I’ve gotten into it, there’s some things that I take for granted that I realize other people don’t have that framework or that foundation for understanding Bitcoin.

Brandon Burton (04:44.844)
I’m hoping to be able to give some of that background about what Bitcoin is generally before I build on the bigger ideas. So what is Bitcoin? Bitcoin is a decentralized digital monetary network. So some people call it like a digital gold. So it’s a store of value. It’s an investment tool, but it’s a way to be able to send money digitally.

anywhere in the world for very low fees. In the past, as I use the term digital gold, in the past, people would look to gold as a store of value. But if you needed to send gold across the world, there’s a lot of effort required with that, including insuring it and transporting it and the whole nine yards. So Bitcoin is a way for you to digitally transfer large amounts of money without

or large amounts of value without all the extra friction. Bitcoin is not a company. There is no CEO of Bitcoin. There is no website for Bitcoin. It was created anonymously about 17 years ago at this point. So as I record this, we’re in December of 2025, which is important because I will reference some different

things that will be important for us to pin back to this date in mid-December 2025. So Bitcoin was created anonymously and the way that it works is it’s mined a lot like gold is. Where gold, you have to get the tools, you gotta go into the mountains, you gotta dig through the granite and put forth a lot of effort to reveal the gold. So with Bitcoin,

Bitcoin is mined in the digital landscape. And the easiest way to explain this is there’s very complex equations that are put out there that computers work on essentially nonstop. And as a computer solves this equation, they are rewarded with a block. So a block

Brandon Burton (07:07.598)
for the blockchain technology maybe. So a block is mined roughly every 10 minutes. So every 10 minutes a block reward is issued. And what that is is that block of transactions gets approved and there’s a consensus across the different nodes that are being run on the network to validate that the ledger is correct. And then that block of transactions can get cleared and

and move on into the history of the blockchain. So as Bitcoin is mined, so there’s miners who they have expensive mining rigs that are used to mine the Bitcoin and it uses an intense amount of power to be able to do the mining. So a lot like mining gold, there’s a lot of effort that goes into it, a lot of energy. Same thing with mining Bitcoin.

So there is a difficulty in achieving it. And if there’s a whole bunch of miners that come on at one time, there’s a difficulty adjustment that gets made within the software. So it makes it harder to solve those problems, to earn that block reward. And if there’s less miners on the network, then that difficulty adjustment comes down to where it becomes a little bit easier to solve the problem. So it can stay on track for every 10 minutes for a…

a block to be mined. And that’s important too because miners, they are not online unless they can be profitable. So if they’re in an area where you can’t get cheap energy, then they’re not going to mine. So they tend to go to places where energy can be as close to free as possible. So maybe by a waterfall or some kind of water source where they can get electricity or solar or nuclear plant or

Even in oil fields where they’ll use some of the flare at the oil rigs to be able to convert into energy. Even methane from junkyard, from landfills, they’ll use the methane and convert that into electricity to be able to run their mining rigs. So there’s very creative ways that miners are able to access power to be able to do the mining. And it’s kind of transforming the world with giving a

Brandon Burton (09:33.311)
Access to energy in places the world that haven’t had it before so back to the minor so minor Is online they they go through the process to Earn a block reward and I keep saying block reward because if they win the block saying they solve the problem and and get that block there is a reward to it so that reward is a certain number of Bitcoin, so

Let’s say at one point it was 10 Bitcoin and then every four years there’s a halving cycle. So every roughly every four years, what was 10 Bitcoin be cut down to five Bitcoin as a block reward. And then four years later, that five gets cut down to two and a half. And then four years later it gets cut down. So you understand what I’m saying. Every four years that block reward gets cut down, cut in half.

However, the price of Bitcoin continues to rise very dramatically. So with that having, it tends to help boost the price of Bitcoin as well. Some of this may seem technical and really I just want to give a basis so you can kind of have a concept, a better concept maybe of what Bitcoin is. But Bitcoin is built to be long-term inflation resistant store about

So in the end, that’s what it is. institutions are starting to pay attention to Bitcoin. And you might ask why, why are institutions paying attention? Well, there’s the number go up technology. So the price of Bitcoin is dramatically increasing. But over the last 15 years of operation, there’s been zero downtime with the Bitcoin network. So because there’s no company, it’s not centralized into one.

building or one locale, these nodes and miners are spread throughout the world. So if one node or miner, if there’s a power outage in a certain area, there’s redundancy throughout the world. So there’s been zero downtime with the Bitcoin network. Historically, there’s been a 200 % average annual compounded return over the past decade.

Brandon Burton (12:00.258)
That number is a little bit deceiving because on the front end of the decade, this is averages. So the front end of that decade, that return was much higher. And as time has gone on, it’s not quite as high, but it is still very attractive. Usually around 40 to 50 % return annually at this point in time. Bitcoin has outperformed stocks, real estate, bonds, gold, and nearly every major asset class.

which is mind boggling. A lot of people say Bitcoin is too volatile and it is, it’s volatile. has its ups, it has its downs, but once you zoom out and look at it long-term, it’s just up and to the right ever since its creation. it is an amazing asset. Bitcoin is increasingly recognized as digital property. rather than risk on speculative assets.

This is where I want to make the distinction. People talk about crypto, cryptocurrency, and then there’s Bitcoin. So technically Bitcoin is a cryptocurrency, but cryptocurrency is not Bitcoin. So I hope we can be clear on that. In fact, I don’t ever talk about crypto. I have zero interest in any crypto asset. I don’t even want to name them, but there’s a lot of speculative assets in the crypto world.

to me, Bitcoin is the only thing that matters. Because even with all those speculative cryptos, people will buy and sell them, but they’ll accumulate value just to buy more Bitcoin, because that’s Bitcoin’s key. So let’s talk about what Bitcoin is not. So Bitcoin is not a get rich quick scheme. It’s not as, in fact, when you buy it, I would say you need to buy it and hold it. Otherwise you’re going to get burned. It’s not something to trade.

So if you try to time the market, try to buy low, sell high, one, there’s going to be tax ramifications, two, you’re never going to beat the market. It’s always going to burn you in the end. So it’s not a get rich scheme and it’s not something you trade. It’s also not a traditional investment managed like equities. It’s best used as a long-term reserve asset. So just buy it and hold it and.

Brandon Burton (14:26.57)
As you buy and hold it, there’s other things you can do with it, which I’ll touch on in a little bit. So the background or the inspiration that I had into bringing Chambers into the Bitcoin world is there is a company, it was called MicroStrategy. Now it just goes by strategy and MicroStrategy was, I’m going to say more of a struggling

software company. They were doing, I believe, about a hundred million a year in software. But as a software company, that’s not a lot. As we hear in his chambers, that’s a lot of money. But software speaking, that’s not a whole lot. But MicroStrategy, it’s a publicly traded business, intelligence company, software company. Their CEO is Michael Saylor. And he pioneered what I’m going to call the Bitcoin Treasury Strategy.

So in 2020, Michael Saylor was looking for ways to save their company. And he learned about Bitcoin and he dove in about what all Bitcoin has to offer. And in 2020, Michael Saylor announced that they would be shifting excess cash into Bitcoin as a long-term reserve. As of early 2025,

Um, and this number is not even going to be accurate anymore because they keep buying and acquiring more and more Bitcoin. But as of the beginning of this year, um, they, they held about 1 % of the global Bitcoin supply. I believe they’re closer to 5 % at this point. Um, every few weeks they’re buying more, um, in massive loads. So they accumulated initially through.

excess cash reserves. So whatever cash was sitting on their balance sheet, they were buying Bitcoin because cash as we know is subject to inflation and over time devalues itself where Bitcoin, it inflates over time and it’s inflation proof as it continues to outpace every other asset out there. And once they exhausted their cash reserves,

Brandon Burton (16:52.472)
They started looking for other ways to accumulate more bitcoins. So they got into convertible notes. They got into issuing bonds. They got into regular, regular treasury allocations. So they are creating new treasury products that they’re putting out there in the market that you can purchase. And essentially by one of these different treasury notes that they

that they produce and it’ll return, depending on the price of Bitcoin, roughly a 10 % return. So when you look at people on fixed income, for example, looking at retirement and they want a steady return, you can purchase some of these shares, these fixed income equities, and they’ll return roughly a 10 % a year guaranteed return.

MicroStrategy has built out their balance sheet and issued these notes and bonds and so forth where they are over collateralized massively with Bitcoin. So the price of Bitcoin, when it was at its peak earlier this year, it could take a down ride. It could dip down to like 80 % of its top value.

and MicroStrategy would still have a strong balance sheet to be able to make all their debt payments. So super strong company, very creative with how they’re accumulating Bitcoin. But as a result, the market cap or the value of MicroStrategy went from about $1 billion to over $80 billion during peak cycles.

So within about a five year period, went from 1 billion to over 80 billion. Their operating business didn’t change, but their balance sheet strategy did, and that’s key. So as we think of Bitcoin for chambers, I don’t want you to think of changing your operating business. Your day to day, what you do shouldn’t change much, but the way you structure your balance sheet should to be able to adopt

Brandon Burton (19:15.454)
this kind of a strategy. So you don’t need to change your programs or events. You can strengthen your foundation by adopting a smarter treasury approach. So that was the initial inspiration that I had. And then as I’ve, I dove into Bitcoin education several years ago, just learning as much as I can about it. And there were ideas floated out there about

what’s called bit bonds. So what a bit bond is, if you think of a municipality issuing a bond, maybe they need to build a new fire station. They can allocate a percentage, even just a small percentage of the bond to purchase Bitcoin with, but then as the math plays out would vastly outperform the interest on the rest of the bond. So then in the end, the

the end of the term of this bond would be split between the bond purchaser and the issuer. So they both end up better off for it. So BitBonds are tokenized bonds issued on Bitcoin’s layer. They have been issued first in El Salvador.

to raise capital through what they called volcano bonds. So if you wanted to Google that and dive in more on what volcano bonds were with bit bonds. But they resent a government using Bitcoin, the Bitcoin rails to raise capital. It’s a hybrid model between traditional bonds and the Bitcoin upside. This matters kind of as a precedent because it shows that public institutions are now using Bitcoin.

as part of sovereign financial strategy. It demonstrates how Bitcoin-backed instruments can support infrastructure growth, tourism, national development projects. And as far as the relevance to chambers, if nation states, El Salvador, we’ve recently heard even the United States building a Bitcoin reserve, strategic Bitcoin reserve for the United States,

Brandon Burton (21:38.145)
I’m in Texas. Texas has started a strategic Bitcoin reserve. But if nation states are leveraging Bitcoin for a long-term capital formation, then why shouldn’t local business institutions consider smaller scale version of this? Why shouldn’t chambers consider having a long-term capital, strategic capital, strategic Bitcoin reserve rather? So as my thinking, it went from

MicroStrategy, the corporate Bitcoin reserve that they set up, it’s the idea of these BitBonds. And I’m thinking, man, how can Chambers take advantage of this? So as I started diving into that thought and exploring that and flushing it out, the idea came to me of Bitcoin being part of a strategic reserve for Chamber foundations. So a lot of you listening will already have…

a Chamber Foundation or 501C3. I know many Chambers out there are exploring starting a foundation or would like to start a foundation. And I would suggest having the 501C3 to hold the Bitcoin, just the structure for it is much better and how you can allocate it throughout its life. But foundations are already managed and restricted.

sorry, foundations already manage restricted or endowed funds. So it’s a right entity for that. They operate with long-term stewardship in mind. So it’s not just something that you get money in, turn around and use it, but it’s meant for long-term growth and development in your community. And they are ideal vehicles for building intergenerational financial resilience. So.

the proposed chamber Bitcoin reserve strategy that I would put out there. So this is where you get your pen and paper and start jotting down notes. But I would say to accumulate small amounts consistently. I mentioned before trying to buy low, high. if you buy, if you dollar cost average consistently, you’re able to take advantage of the upside. So whether you use fundraising,

Brandon Burton (24:03.646)
surplus of revenues or earmark economic development funds or maybe you do a capital campaign and you take a portion of the money raised with that capital campaign to fund your strategic Bitcoin Reserve. You could also accept direct Bitcoin donations from local tech forward businesses. If they knew that you’re building a Bitcoin Reserve,

there would be people in your community who would want to give you Bitcoin directly to participate in that. And you probably know who some of those tech forward businesses are who would be interested in that. So the accumulation is one way. So how do you accumulate it? And there’s different strategies of how to do that. But then the custody of the Bitcoin. So Bitcoin has keys.

There’s a key phrase that accesses the Bitcoin. I would strongly, strongly recommend that, again, this isn’t financial advice, but I would strongly recommend that you use a third party as a custodian for your Bitcoin. And that way you can do what’s called have a multi-signature vault, which means maybe you as a CEO

maybe your board chair and this third party all have a signature to access the Bitcoin. if you wanted to, let’s say one of the, you or your board chair, you know, were to lose the keys, you could still access it with two out of three of those individuals having those keys. The other thing is,

A lot of chambers have policies in place, so you can’t write a check or sign a check over a certain amount without a second signature. So multi-sig would kind of help with that as well to make sure that any transactions or spending of the Bitcoin is done with a lot of thought to it and not done casually or just on a whim. But there’s some good companies out there that can help with that.

Brandon Burton (26:26.702)
And it just, really reduces the exposure to losing the keys. So you want to make sure you have a third party multi-sig vault and there’s some that will even insure it. So if anything were to happen and you’ve lost the Bitcoin, you can purchase insurance on it as well, which is pretty cool. So the next point is

My thoughts on this is if you choose to go with the strategy of building a strategic Bitcoin reserve, don’t do it unless you can commit to at least five to 10 years of holding the Bitcoin. Don’t sell it. Whatever you do, don’t sell. Ideally, you would accumulate the Bitcoin within your foundation and you would never sell it because it’ll continue to increase in value over time.

And there’s ways that you can access it. So you could take a loan out against it. You can, can act as collateral to do some pretty interesting things. that marketplace for how to use Bitcoin as a collateral is just growing and becoming more innovative. But let’s say, well, if you have this reserve and

you have that commitment of five to 10 years to not sell it, hopefully never sell it, the reserve becomes a long-term economic development asset. So chambers could eventually use the appreciated value to acquire land for industrial recruitment. You could seed a revolving loan fund for small businesses. You can fund chamber-backed grants or workforce programs.

You could create interest-based scholarships or talent pipeline programs. It could serve as a rainy day fund for future crises that may come. Again, I would say, please don’t sell it, though. I would take a loan out against it. so for the example, if you’re acquiring land for industrial recruitment,

Brandon Burton (28:40.878)
You acquire the land, you get that recruitment, you turn the land over, and then you pay off the loan that you had from the Bitcoin. So you continue to grow in that appreciation of Bitcoin while you’re putting that capital to use. So hopefully that makes sense. So expected outcomes over time. So just to give you an idea, if a chamber accumulates $100,000 in Bitcoin and holds it for 10 years, just as an example.

Historical averages suggest the potential 10 year growth to be about 25 times that initial investment. So that’s huge. I always want to think more conservatively. So even if it was 10 times, that still, that turns a hundred thousand dollars into a million over 10 years. But even 10 % of the historical performance will, you know,

dramatically outpace a bond or CD yield. I would say start small, contribute steady and consistently, and in the future you’ll have meaningful economic power in the future. So there’s validation. This is already happening with other institutions like Harvard.

is Harvard’s endowment, the largest academic endowment globally. They began holding Bitcoin in private funds as early as 2019. Other institutions, Stanford, Yale, MIT, all have different levels of Bitcoin exposure. Black Rocks, Bitcoin ETF or iBit.

is now one of the fastest growing ETFs in history. And Fidelity has publicly positioned Bitcoin as a superior store of value. And why does this matter to Chambers? Well, foundations with the 100 years outlook are embracing Bitcoin. Chambers, which also should have a plan for generational impact, should consider doing the same. So thinking big, thinking well into the future, building your community.

Brandon Burton (31:05.902)
Having that resilience Bitcoin is that tool to get you there now as you present this idea to your board as you present this to your accountant as you present it as you start talking about it out loud, sometimes I’m a little hesitant because People have different ideas about Bitcoin and more and more they’re becoming positive but man about eight years ago when I got into it

I mentioned Bitcoin to people, they thought I was crazy. But now it’s obviously much more mainstream and it’s been proving itself. But people will say Bitcoin is too volatile. And yeah, that’s true. From day to day, it’s super volatile. But long term, it’s been extremely strong. And as a chamber, you shouldn’t be trading the day to day. You’re building reserves for long time into the future.

The volatility really can be a gift. And Michael Saylor has talked about that. The volatility of Bitcoin is really a gift for us long term. Somebody may say, well, we can’t risk member dollars on Bitcoin. So this strategy uses foundation funds with clear restrictions and long-term intentions. So it’s not for operating budgets or for event revenue.

It has a specific purpose for funding this foundation. Some might say our board won’t understand Bitcoin and this is why education matters. It’s important for you to learn about Bitcoin so you can help answer their questions. You can compare it to land. There’s a limited supply. There’s only ever going to be 21 million Bitcoin ever produced. 21 million. That’s it. There’s not even enough Bitcoin.

for every millionaire in the country to have a Bitcoin. So there’s definitely an early mover advantage. And Bitcoin can be broken down into smaller units called Satoshis. And you can learn more about that as you dive into your education on Bitcoin. But it’s a hard asset, has long-term appreciation. It doesn’t require ongoing maintenance. So the idea of like real estate, there’s always, know, maintenance that goes on with that.

Brandon Burton (33:30.754)
Bitcoin doesn’t have any of that. Bitcoin is digital land, globally scarce and infinitely divisible. So another risk, I guess you could say, or objection to it is what if we lose the Bitcoin? And that’s a question that makes me sick to think about, to lose your Bitcoin. So I’d mentioned before the multi-sig vaults.

use a third party, a trusted third party multi-signature vault, and that removes that risk of a single person losing the Bitcoin keys. But keys can be distributed among board members and with rotating responsibility. All right. So if you are wanting to implement this into your organization, into your foundation,

So one would be set up a foundation or sub foundation specifically labeled as a strategic digital asset reserve to adopt a written policy that says we’re not going to sell the Bitcoin for five to 10 years or whatever you want that policy to read. But that would be my my guideline is for sure. If you sell it if you sell it less than five years, you may end up losing money.

But if you keep it five to 10 years, you’re going to be on the upside. If you keep it forever, you’re definitely going to be on the upside. Part of that written policy, have it spelled out what your annual allocation target is, what your specific custody standards are. So you know how to access it you don’t lose your keys. Educate your board and your membership about what you’re

doing and how you’re going to put this strategic fund to use in the future or ways that it could be utilized in the future. And then begin to dollar cost average, just monthly or quarterly or annually, whatever interval you want to set up, but have a way to dollar cost average. then track reserve performance annually as part of your foundation reporting, you know, see what that growth looks like here to here.

Brandon Burton (35:49.719)
start getting excited because this can really transform your community and your organization. So imagine your chamber foundation in the year 2035, 10 years from now, with a reserve worth two to $10 million because you simply committed to accumulating a small amount of Bitcoin each year. Imagine funding major workforce facility.

securing land for a business park or seeding your own microloan program, all because your chamber thought ahead. This position’s chamber’s not as followers, but as innovators in community economic resilience. So in closing, I this has kind of gone a little long just hearing me ramble on without another guest or somebody to have that ongoing dialogue, but.

Chambers have always been the boots on the ground leaders in economic development. The future will reward those who embrace asymmetric opportunities early.

Bitcoin is not a silver bullet, but it is an incredible tool for long-term local prosperity. And I would encourage you to explore, ask questions, and consider whether your foundation is structured to take advantage of generational opportunities. But I hope that you found this interesting, at the least, transformational at the most. I really hope that

Chambers listening right now will take this and really transform the organization. And I would love to hear of anybody who adopts this strategy, especially 10 years from now. And you are that chamber who’s sitting on a $10 million strategic fund because you implemented something today. I would love to hear about that. But if you have any questions, reach out to me.

Brandon Burton (37:54.201)
Brandon@ChamberChatPodcast.com and Anyways, I hope this episode helps and hope you hopefully you learned a few things and sparked some ideas of how you can Set up your community for long-term growth into the future


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