Ukraine Philanthropy Part I – How You Can Help A Lean Scrappy Group

I wrote recently about what would be on the bottom of my list of philanthropic priorities. 

What is on the top of my list? I have only just begun to act on it, but the short answer is Ukraine, my geopolitical obsession for a little over a year.

My main honest thought in February 2022, during the first week of the invasion, is that I would have fled the fight. I fully expected Ukrainians to do the same. Their resistance to the Russian invasion, and their relative success in not being rolled over by the successor to the feared Red Army, astonishes me. 

ukraine_war_map
Ukraine key locations

The conflict may last many more awful years. One of my main questions over the past year is how can I, and by extension how can Texans equally obsessed as me, support Ukraine?

Official Channels

Two official sites exist to gather international private support for Ukraine’s resistance. As a first response to my question I think people could and should consider these. 

Ukrainian President Zelensky created United24,

which solicits donations for one of three purposes: 

  1. Defense and Demining,
  2. Medical Aid, and 
  3. To Rebuild Ukraine

Mark Hamill, who portrayed rebel Luke Skywalker in the Star Wars epic about scrappy resistors fighting an evil empire against all the odds, has signed on to this official effort to support Ukraine. They accept credit and debit cards online. As of April 2023, Ukraine24 says they have raised $321 million this way.

In addition, the National Bank of Ukraine created a site for private direct donations to support the Ukrainian Armed Forces.

The National Bank of Ukraine claims that as of April 2023, it has raised the equivalent of $677 million (25 billion Ukrainian Hryvnia) through direct donations. 

Unofficial Channels

One of the unique features of this invasion is how technology – through social media, and on-the-front-lines communications for example – enables individuals to offer material support in a less official capacity. There are likely thousands of small-scale efforts that have sprung up since February 2022 to support Ukraine.

Austin-based television director Dax Martinez-Vargas met fellow advertising director Mykola while shooting television commercials in Ukraine. Following the 2014 Russian invasion of Crimea, Mykola’s television work dried up. As Martinez-Vargas tells it, Mykola over time built a discussion group on the social media platform Discord to call attention to Ukraine’s situation. When Russia invaded in February 2022, US-based members of that Discord group asked Mykola how they could help get supplies to where they were needed most. The discussion widened to others interested in Ukraine’s plight on the social media platform Reddit, where Mykola continues to build his international audience using the alias “JesterBoyd.”

jester_boyd
JesterBoyd

Dallas-based entrepreneur Steve Watford joined with Martinez-Vargas and a Nevada-based entrepreneur Anders Boyd to found Ukraine Front Line, Inc. 

Their original common bond was Mykola’s Discord group, and a desire to help as directly as possible. Boyd built the group’s website. Watford became President and got the organization recognized by the IRS as a 501(c)(3) charity, eligible for tax-advantaged giving from US citizens. 

Since then, Watford reports, about $50 thousand from 200 individuals and two trusts have been sent to support Mykola’s efforts to deliver needed supplies to the soldiers and medical personnel at the front. As their man on the ground in Ukraine, Mykola arranges purchase and pickup of materials, often in Poland, and sees their delivery by himself, or via couriers. They’ve purchased and delivered supplies such as combat medical supplies, cold weather uniforms, and reconnaissance drones.

It’s all very scrappy, lean, unofficial, and grass-roots. Watford, Martinez-Vargasa, and a third board member Robin Rohrback with whom I spoke, all prefer the efficiency of direct support to Ukrainians over more official charities or big established international charities. 

Compared to larger organizations, the material delivered by Ukraine Front Lines, Inc is tiny. But as the volunteers see it, with no overhead and volunteers who cover their own administrative costs, 100 percent of donations go to where it’s most needed in Ukraine.

The risks

The New York Times reported last month on Ukraine charities that have popped up since the invasion began 14 months ago that have raised eyebrows.

Accusations include lying about the biographies of key members, claiming official registration or pending registrations as an official charity when that wasn’t true, or exaggerating accomplishments or deliveries of supplies. A year ago I sent a small amount of money via PayPal to a Ukraine-based American with an active Twitter presence who represented just such a grassroots organization. He was mentioned as a controversial figure in that recent New York Times article, and he has since gone dark on Twitter. For small organizations, one should always maintain some level of skepticism. 

For what it’s worth, Ukraine Front Lines is a registered 501(c)(3) organization. Mykola and his in-country couriers do an admirable job of photographing and documenting their deliveries, posting on the Ukraine Front Lines blog and Reddit. 

One upside of supporting small organizations is efficiency. Another is that supporting small increases the chance of engaging in a philanthropy that is emotionally satisfying, through a narrative and personal connection. 

My donations

I am of the opinion that the US government and our NATO should support Ukraine generously with government funds. As of this writing, official US government support is above $75 billion, a combination of military, financial, and humanitarian aid. But I also hope and think Americans – who give close to $500 billion dollars in philanthropy per year – could make a difference as well.

Last week, I was successfully able to donate a small amount of money to Zelensky’s United24 for “defense and demining” through my credit card. 

Then I tried to donate a small amount using my credit card to the National Bank of Ukraine, but the payments didn’t go through. After three failures I tried to communicate via online chat, but the site’s chat function was in Ukrainian, so I was not able to complete that donation. 

Zelenskyy
Zelenskyy as civilian leader and leader of a country at war

Finally, I gave a small amount to Ukraine Front Line, Inc after speaking directly with three of their members, and after viewing Mykola’s very specific communications online. 

As we grind into the second year of a brutal invasion and defense, I hope and think the philanthropic power of Americans should and could be a force multiplier. 

Watford brings a very Texas attitude toward his support for Ukraine through Ukraine Front Line, Inc.

“We [Texans] bleed freedom, that’s our nature, and God help anyone that threatens it,” says Watford. “This same trait has been heroically demonstrated by the people of Ukraine. They were backed into a corner staring straight down the barrel of a loaded gun and said, ‘do it.’ They have and will continue to fight to preserve their freedom, and they’ll die before they give it up. That’s about as Texan as it gets.”

A version of this post ran in the San Antonio Express News and Houston Chronicle.

Please see related post: Ukraine Philanthropy II – Using Miles for Refugees

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Book Review: Red Notice, by Bill Browder

Red_Notice

Red_NoticeIt’s All Fun and Games Until….

The first half of Red Notice reads not unlike a 1990s emerging market version of Michael Lewis’ Liar’s Poker:1 Browder the investment ingenue learns about the quirky world of Eastern European finance in the early 1990s. He describes hilariously and ruefully the characters he meets and the insights he gets into early opportunities following the fall of the Berlin Wall. The consulting gig failure in rural Poland. The terrible job working for soon-to-indicted Robert Maxwell. Valuing an aging ship fleet above the Arctic Circle for Salomon Brothers, and finding tremendous value in what others thought was a scrap heap.

Browder writes breezily, humorously, humbly, even about the years in which he gained financial experience and stature – just as Lewis did. His novelistic details of quoted conversations, what people wore, and what they ate over meals – these experiences cannot be literally true based on memories from 20 years ago – they have the ring of truth and the flow of narrative. It’s a great read. Super fun.

Then Browder creates his big breakthrough – as maybe the only American to figure out how to profit from the vouchers that privatized Russian national wealth and created the Oligarchs – as a Salomon Brothers Vice President. His greatest success, becoming the largest foreign investor in Russia by 2005 with Hermitage Fund, also begins the dark chapters of his life, and of the book.

The Second Part of the Book

The fun turns to concern, then fear, and then horror. Browder handles the narrative mood changes well. The central problem is that he became a thorn in the side of Russian businessmen by attempting a version of “corporate good governance” campaigns within Russia. While this made him and his funds money in the beginning, eventually his methods bumped up against the corrupt mafia of the Russian state, the Oligarchs, and their Capo, Vladimir Putin. The Russian state fought back.

Putin_TrumpUnlike what most investors would do – either leave Russia completely or just participate in the corruption – Browder doubles down on his tactics.

From here, Browder’s narrative gets very, very dark.

Browder attempted to embarrass corrupt members of the business elite, including eventually Putin, through exposure. Nearly every in-country business associate of Browder’s received threats from the Russian state and quasi-state mafia. His lawyer Sergei Magnitsky2 was arrested, imprisoned, tortured, and killed. A central, unforgettable, message of Browder’s book is just how dangerous and immoral Putin’s government is.

Browder concludes his book with a dramatic statement that despite years of speaking truth to mafia power, he’s not brave, he’s fearful. Says Browder:

 

I have to assume that there is a very real chance that Putin or members of his regime will have me killed someday. Like anyone else, I can’t mention most of the countermeasures I take, but I will mention one: this book. If I’m killed, you will know who did it. When my enemies read this book, they will know that you know.

Red Notice has garnered a tremendous amount of attention since publication in 2015, but given the ongoing current events, it still feels like 95% of Americans aren’t aware of the true nature of the Russian state under Vladimir Putin.

 

Please see related posts:

All Bankers Anonymous books in one place!

 

 

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  1. And I mean that as the highest form of praise. Lewis has been the reigning G.O.A.T. of finance journalists since the late 80s.
  2. The “Magnitsky Act,” named for Browder’s lawyer, imposed sanctions on Putin’s inner circle for corrupt acts and human rights violations. The Russian Parliament responded by ending US adoptions of Russian children. The supposed cover story for the now-infamous “Trump Tower” meeting involving Donald Trump Jr, Paul Manafort, and Russians in June 2016 offering dirt on Hillary Clinton was a discussion of “Russian adoptions.”