Meet the Moment: A Call to Action for Philanthropy Now & Into the Future
Presented by the Trust-Based Philanthropy Project, in collaboration with Grantmakers for Effective Organizations and the National Center for Family Philanthropy
Actions by the federal government – from funding rollbacks, to executive orders, to the gutting of social services – are putting our communities at risk. The nonprofits they rely on are also in crisis, with at least 70% anticipating negative impacts as a result of this political climate, including high rates of burnout, legal concerns, and fears of shutting down in the absence of reliable funding
This is a critical moment for funders and donors to step up – where we show our shared commitment to a healthy, just, and democratic society. By leaning into trust-based partnerships, listening to what nonprofits need, being flexible and purposeful in our giving, and using our collective power, funders can play a critical role in shaping the future of our communities.
Take action today. Sign the commitment to move in solidarity, mobilize money, and nurture possibility – and become part of a growing community of grantmakers and donors taking trust-based, courageous action on behalf of nonprofits and communities.
Move in Solidarity with Nonprofits
Check in on your nonprofit partners. Acknowledge that the purpose of your philanthropy is to support their work and success. Offer them a safe space to share what they are going through, listen deeply, and extend empathy and moral support.
Offer support beyond the check, including access to legal services, digital security, audit preparation, and risk assessment. Share resources to help them understand the impacts of federal actions.
Be transparent and responsive about how you and your foundation are navigating this moment and be attentive to grantees’ needs and questions.
Advocate for the social sector by using your platform, organizing peers, and engaging elected officials and other decision makers about what is at stake and what we can do about it.
Collaborate with other funders to pool funds, align on efforts to eliminate administrative burdens, and respond to grantees in a coordinated way. Invite nonprofits to inform your plans for coordinated action.
Mobilize Money in a Trust-Based Way
Commit to multi-year, unrestricted funding that allows nonprofits to plan ahead, ideally 4 years. If you already provide multi-year funding, be proactive about offering early renewal notices when you can.
Increase your grantmaking budget. Whatever your current payout rate is, consider how you can increase it, even temporarily. For some, this may mean eliminating administrative costs from your 5%, or making stock grants in addition to your core grants. For others, it could mean giving at the level that your endowment is growing, which could be up to 6%, 10%, or more. If you are already giving more than the required 5%, consider if you can commit to a higher percentage for the next four years. For tips and guidance, check out this resource from NCFP and Council on Foundations.
Simplify and streamline processes, and set up systems to swiftly review and approve applications, so you can disburse funding more quickly quickly to nonprofits in need.
When possible, give gifts instead of grants, to eliminate administrative burdens altogether.
Be flexible on the timing of grant disbursements, as many of our nonprofit colleagues are experiencing cash shortages due to federal funding freezes and reticent funders. If you’ve already committed grants, ask them if it would be helpful to disburse them sooner than anticipated.
Nurture Possibility & Innovation
Listen for, and fund, big bets. Many nonprofit leaders are already thinking about how to reimagine their work in a dramatically different environment. Listen for these ideas and innovations, and offer trust-based funding to help nonprofits develop and experiment with new ideas on rebuilding civic and social infrastructures.
Support connection and convening. Fund and nurture opportunities for nonprofits to be in community with one another, to explore opportunities for collaboration, to exchange ideas, and to reimagine their work together. Offer trust-based grants for travel and conference attendance and/or provide optional, non-mandated retreats for restoration and connection.
Explore funding beyond the conventional 501c3 structures, such as LLCs, 501c4s, fiscally sponsored organizations, mutual aid networks, and donor circles. If you have partners that are particularly vulnerable to targeting, support them in identifying fiscal sponsorship or other alternative structures that can provide them with greater protection from potential threats.
Wondering what it means to sign, where to find support in operationalizing your commitment, and where we'll go from here? Check out our FAQs page.