Nonprofit Chronicles

Journalism about foundations, nonprofits and their impact

Much as I would prefer not to write about smoking and vaping, I can’t walk away from the story. Tobacco control policy is a neglected topic, and it’s too important to leave alone. When people I admire like Ken Warner, the former dean of the University of Michigan school of public health, who is 75 and could be doing anything he likes, devote their time and energy to advocate for a balanced approach to e-cigarette regulation, I believe attention must be paid.

Warner and his U of Michigan colleague Cliff Douglas are trying hard to overcome the polarization that characterizes the great vape debate. On one side are prohibitionists–people like longtime tobacco warrior Matt Meyers of the Campaign for Tobacco Free Kids and his patron, billionaire philanthropist Michael Bloomberg, whose narrow focus on young people has led them to abandon smokers who could benefit by switching to a safer nicotine product, like a vape. (They are also shockingly unwilling to consider alternative views and meet with their critics, as I’ve written.)On the other side are advocates of tobacco harm reduction, which in this context means encouraging people who can’t or won’t quit smoking to switch to less harmful products to get their nicotine, even if those products aren’t entirely benign.

In a new story for Filter, I take a close look at the efforts by Warner and Douglass to find common ground in the great vape debate. They haven’t made a lot of headway, but they are not giving up.

This week I’ve been in Glasgow, where an organization called Knowledge-Action-Change just released a new report called The Right Side of History: The Global State of Tobacco Harm Reduction 2022. It’s a thorough and surprisingly readable history of tobacco harm reduction. The authors are optimists: They believe that safer nicotine offerings — the variety of e-cigarettes, heat-not-burn products like Iqos and oral nicotine pouches like snus — will over time replace the deadly cigarette. The question is, how much time and how many lives will be lost before that happens?

You can read my analysis of the report on Medium.

I’ve neglected this blog all fall as I write less about philanthropy and more about psychedelics. It is no longer “Nonprofit Chronicles” except in name. I am hoping to start a new website/blog at my old URL, marcgunther.com, but haven’t been able to begin that daunting task. If anyone reading this knows a web designer who can help me by building a simple Squarespace site, please reach out to me by email.

Meantime, here are links to stories that I’ve written since last posting here, in reverse chronological order.

My new story for Lucid News looks at Carey Turnbull, who exercises a lot of influence over the psychedelic sector as a philanthropist, the founder of two startups, and the leader (and funder) of a nonprofit that challenges overly-broad patents. He has supported research at NYU and Yale that could pay off big, but some worry that he is accumulating too much power. A former Wall Street trader, Turnbull is also an enthusiastic user of psychedelics.

There’s enormous excitement over the potential of psychedelic medicines to treat a variety of mental health conditions, for good reason. But startups in the sector are struggling to raise money. Consolidation has begun. Eleusis Therapeutics, a promising startup, was recently acquired by a private company called Beckley PsyTech. Here’s my story about the deal, also for Lucid News.

Several weeks ago, I attended the Horizons: Perspectives on Psychedelics conference in New York City. The gathering attracts scientists, entrepreneurs, investors, activists, lawyers, therapists and not a few party-goers, about 1,000 people in all; it’s a great place to take the pulse of the sector. I came away more impressed than ever by the work of the scientists who are researching the benefits of MDMA, psilocybin and LSD, but wondering where the money will come from to get these drugs into the hands of people who need them. Here’s my take, published on Medium.

There is one place more people are finding psychedelics: In church. No one is keeping an exact count but the number of churches that offer ceremonies using plant medicines continues to grow apace. Some churches operate openly, with websites and Facebook pages. Others remain underground. My story for Lucid News takes a look at the legal issues raised by plant-medicine churches. The landscape is murky.

While there’s enormous uncertainty about the future of psychedelics will look like, it’s increasingly evident that these drugs are going to enter the mainstream, one way or another — as medicines bearing a stamp of approval from the FDA, as decriminalized drugs in cities like Washington DC where you can now buy psilocybin chocolates online, via healing centers in Oregon beginning next year or as “sacraments” in the churches. A backlash or crackdown is possible, but I don’t see any political appetite for waging a war on psychedelics. Instead, my bet is that more people will try these drugs, more people will understand their benefits and there will be no turning back.

T. Cody Swift

As a young philanthropist who supports research into psychedelic medicines, Cody Swift is nothing if not hands-on.

He has experimented with psychedelics.He has guided clients through trips as part of clinical trials at Johns Hopkins University. He has published in an academic journal. Most important, he has donated millions of dollars. His donations are poised to have a big impact.

He’s also a leader, with David Bronner and others, of efforts to support indigenous peoples who have used these medicines for thousands of years.

Cody is one of a very few private donors who kept research into psychedelics alive before Michael Pollan (and others) arrived on the scene. Even a decade ago, there was essentially no government money or investments from startup companies to support research. My, how things have changed!

Here’s my new story about Cody and his work, published by Lucid News, a website that covers all things psychedelic where I’ve become a regular contributor.

Last week, Filter, a nonprofit journalism website that covers drug policy, published my long (3,000-word) story about the Truth Initiative. Truth Initiative, which was formerly known as the American Legacy Foundation, began in 2000 as an anti-smoking group — by most accounts, a very effective one — and later evolved into a nonprofit that seeks to “inspire lives free from smoking, vaping & nicotine.” My story explains, to the best of my ability, how and why Truth Initiative broadened its mission and, arguably, took a disastrous turn in the wrong direction.

The story is unavoidably detailed and complicated, so I won’t try to summarize it here. Suffice it to say that well-respected senior scientists who left Truth Initiative told me that they are dismayed by the organization’s hard-line stance against vaping and all things nicotine.

“They have spun and ignored the science to cherry pick only information and data that supports the ideology of prohibition,” said David Abrams, a professor of public health at New York University, who previously directed the research arm of Truth Initiative.

Sally Satel, a psychiatrist and a fellow at the American Enterprise Institute who writes about medicine and culture, told me: “We’re not talking misinformation. We’re talking disinformation. This is willful misrepresentation of facts. It’s mind-blowing.”

Because Truth Initiative has been largely funded by proceeds of a class-action suit against the tobacco industry, the organization is, as a practical matter, accountable to no one but its self-perpetuating board. Its opposition to vaping has meant that smokers who want to quit by turning to e-cigarettes are finding it harder than ever to do so.

I dearly hope that members of the Truth board will read my story and reconsider the organization’s position. Vaping is literally a life-and-death issue.

You can read the story here.

The more I learn about psychedelic drugs, the more I realize how much work lies ahead for researchers who are studying these medicines.

Last week, I watched How to Change Your Mind, the four-hour Netflix adaptation of Michael Pollan’s book, which explores the history and healing potential of four drugs: LSD, psilocybin (the active ingredient in “magic mushrooms”), MDMA and mescaline. It’s excellent! Aside from Pollan’s book, which goes into the history, culture and psychopharmacology of psychedelics with greater depth, there’s no better way to understand what’s often called the psychedelic renaissance.

But, through no fault of Netflix, Pollan or Alec Gibney, the filmmaker, the series is out of date. Except for the episode on MDMA, which chronicles the long-running effort by the Multidisciplinary Association for Psychedelic Studies and its indomitable founder Rick Doblin to win government approval for MDMA-assisted therapy as a treatment for PTSD, Pollan has little to say about the startups and public companies that are trying to turn psychedelic drugs into FDA-approved medicines. By some estimates, hundreds of companies working with psychedelics.

One of the more interesting startups is Eleusis, which was founded in 2013 by a former Goldman Sachs banker named Shlomi Raz. Guiding much of its research is Charles Nichols, a professor of pharmacology at the LSU medical school. (His father David Nichols is a legend in the psychedelic world.) Like other startups, Eleusis believes that psychedelics — in its case, a newly-created drug similar to psilocybin – can alleviate the suffering caused by mental illness. But what sets the company apart is its extensive research into the anti-inflammatory properties of psychedelics. While indigenous people historically have used psychedelic drugs to treat physical ailments, there has been very little contemporary research exploring whether and how psychedelics can reduce inflammation, which is associated with such diseases as arthritis, asthma, Alzheimers disease, retinal disease and heart disease. This is virgin territory for research.

You can learn more in my latest story for Lucid News, which ran under the headline: Can Psychedelics Treat Inflammation and Eye Disease. Eleusis Thinks So. Its research is very early stage, but the possibilities are mind-boggling.

Last week, I gave a talk titled “The unchecked power of philanthropy” at an event called The Global Nicotine Forum in Warsaw. I explained how and why I’d decided to write about Bloomberg Philanthropies’ campaign against electronic cigarettes, beginning with a long article in the Chronicle of Philanthropy in March of last year and why I’ve continued to write about vaping on Medium.

The talk, delivered via Zoom, turned out to be timely.The campaign by Bloomberg and its allies surely contributed to the FDA’s decision this week to ban products made by JUUL, a popular brand of e-cigarettes. That decision is misguided, in my view. Here’s an excellent analysis by Jacob Grier in Slate.

For reasons that I don’t fully understand, the edited version of my talk, which I posted to Medium, has generated a lot of praise and become my best-read story of the year. Here’s a link.

Mescaline, a psychoactive alkaloid found in the peyote cactus native to Mexico and the southwestern U.S., is the oldest known psychedelic. It has been used for thousands of years by Indigenous peoples–and was a favorite drug of elders of the psychedelic world, including the writer Aldous Huxley, the poet Allen Ginsberg and the legendary chemist Alexander “Sasha” Shulgin. It was synthesized by a German chemist more than a century ago.

Yet mescaline faded from the scene during the 1950s and 1960s. It was supplanted in the counterculture by LSD, a far more potent drug.

More recently, research scientists at universities including Johns Hopkins and NYU have made psilocybin their drug of choice as they seek remedies for a variety of mental ailments. The nonprofit Multidisciplinary Association for Psychedelic Studies is moving closer to gaining FDA approval for MDMA and talk therapy as a treatment for PTSD. MDMA, known on the street as ecstasy or molly, could become widely available with a prescription in a year or two.

But mescaline has not been forgotten. A startup company called Journey Colab is preparing to start clinical trials to investigate the potential of mescaline to treat alcohol use disorder. Journey Colab and its founder, Jeeshan Chowdhury, have set aside equity in the company to recognize the contributions of indigenous people to psychedelic science.

Lucid News, a website about psychedelics to which I am a contributor, published my story about Journey Colab last week. Here’s the link.

Yes, you read that headline right. Unfortunately, many countries, including the US, are nowhere near on track to meet the commitments they’ve made to curb the burning of fossil fuels. Globally, emissions are again rising when they should be falling sharply. It’s not a pretty picture.

The encouraging news is that companies, investors and the US government are all getting serious about a crucial climate technology–removing carbon dioxide from the atmosphere. To avoid the worst impacts of climate change, it will be essential to remove billions of tons of CO2 from the air.

I’m not a newcomer to this topic. A decade or so ago, FORTUNE magazine published my story about carbon removal, headlined The business of cooling the planet. I followed up with e-book, published by Amazon, called Suck it up: How capturing carbon from the air can help solve the climate crisis. Reporters can be too late with a story, and they can be too early. I was, in this case, too early.

But things are changing! Several billion dollars are flowing into the business of carbon removal. Money is going to startups to develop and scale technologies for getting CO2 out of the air, and big companies are putting up even more money to pay for what are often called “negative emissions.” Eventually, government action will be required but these are important steps.

I wrote about all this at Medium, in a story headlined Suck it up, revisited. The best line in the story comes from Chris Sacca, a venture capitalism who wants to invest in carbon removal. He said:

Removal means removal. It means mopping up the 170 years of extractive sludge milk we’ve already spilled. Removal means we grab CO2 pollution already out there and sock it away permanently. As it has been described quite eloquently by others: When you only have one swimming pool, you gotta fish out the turds already floating around while simultaneously convincing people to stop dropping new turds.

You can read the rest of the story here.

It’s crazy hard to quit smoking. More than half of adult smokers try to quit in any given year, according to the most recent data from the CDC, and fewer than one in ten succeed.

Nicotine patches, nicotine gums, nicotine lozenges, medicines like varenicline, cognitive behavioral therapy–nothing works especially well.

This is why some scientists are intrigued by the unorthodox idea of helping people to quit smoking by giving them a psychedelic drug — psilocybin, the active ingredient in so-called magic mushrooms — along with therapy.

Scientists at the Center for Psychedelic & Consciousness Research at Johns Hopkins University have been investigating psilocybin-assisted therapy as a treatment for tobacco use disorder for more than a decade. They’ve reported quit rates among smokers that are, as best as I can tell, unprecedented in the contemporary literature about smoking cessation.

So promising are the early results that the National Institutes of Health last fall awarded a grant of nearly $4m to scholars at Johns Hopkins, the University of Alabama at Birmingham and New York University to further explore the impact of psilocybin on tobacco addiction. It’s the first NIH grant in more than 50 years to directly investigate the therapeutic effects of a classic psychedelic.

You can read the rest of this story on Medium.

Today, my story in the Chronicle of Philanthropy reports on a complaint filed by the attorney general of CA against ZeroDivide, its former CEO Tessie Guillermo and other officers and directors of the defunct and disgraced foundation.

San Francisco-based ZeroDivide collapsed abruptly in 2016, leaving unpaid debts, unanswered questions, and a trail of hurt behind.

Donations that it was holding for other charities disappeared. ZeroDivide failed to file federal informational tax returns. No explanation was forthcoming from Tessie Guillermo, CEO of ZeroDivide, or Carladenise Edwards, a health care executive who chaired its board. They went into “radio silence,” one of their funders told me.

They ducked questions again in 2019 when I broke the news in the Chronicle about the troubles at ZeroDivide. The foundation was created in 1998 and over time raised more than $50 million from other foundations, corporations and the government to bridge the so-called digital divide between rich and poor.

Guillermo hoped, it seems, to be able to tough out the scandal. At the time, she held two lucrative board seats — one at CommonSpirit, a big chain of nonprofit hospitals, which paid her more than $150,000 as its board chair and another at the Marguerite Casey Foundation, which paid her $36,000. It’s no wonder that she ducked responsibility for the mess at ZeroDivide.

No longer can she hide. The complaint from CA attorney general Rob Bonta is damning. It says that Guillermo and colleagues took more than $600,000 in funds that they were supposed to be holding for nonprofits that ZeroDivide fiscally sponsored, and instead spent that money elsewhere, apparently on ZeroDivide’s operations.

You can read the AG’s complaint here, with all the sordid details. It says that Guillermo and others knew what they were doing, and knew it was wrong. The defendants settled the civil lawsuit rather than face trial.

The foundations whose money was misappropriated by ZeroDivide include the California Endowment, the California Wellness Foundation, the Ford Foundation, the Whitman Institute, Wyncote Foundation, and the Vesper Society. When ZeroDivide collapsed, they mostly got the brush off from Guillermo. So did Renaissance Journalism, a small nonprofit that supports advocacy reporting on behalf of marginalized communities, which had entrusted more than $500,000 to ZeroDivide. Those funds vanished.

In my Chronicle story today, Jan Masaoka, chief executive of the California Association of Nonprofits, said: “Too often we in nonprofits don’t like to admit that there has been misconduct by people and organizations that we have trusted and liked. Misdeeds often go without consequences. I appreciate the rigor with which the attorney general’s office conducted the investigation, and I’m glad that there are real consequences for those responsible.”

Guillermo has been publicly shamed. She is barred from serving in a position of responsibility in the California nonprofit sector for three years. Presumably, she’ll have to give up her lucrative board seat at CommonSpirit, which operates hospitals in California.

Yesterday, Guillermo’s lawyer agreed to comment on the attorney general’s complaint for The Chronicle.

I expected that Guillermo would finally take responsibility for her misdeeds and perhaps express remorse. Silly me. Here is his statement, in full:

“ZeroDivide was an honorable and game-changing philanthropic leader, ahead of its time, that benefitted countless vulnerable individuals and communities through its work and support to create equity and narrow the digital divide for the underserved.  This case highlights the dilemma not-for-profit organizations can face from a scarcity of unrestricted funding, i.e., when precisely to abandon both the fundraising and the mission.  The Attorney General’s answer and legal theory remain untested given this settlement.  The defendants stand by their unequivocal denial of the allegations in the complaint.  Also, Tessie Guillermo had retired as CEO nearly a year prior to the end of ZeroDivide’s operations.  Even so, the defendants collectively agreed to settle the matter rather than undergo the expense and disruption of litigation.”