Funders, Can Nonprofits Count on You Amid Growing Threats?
By Shaady Salehi & Pia Infante
12/4/24
Photo by giessht
For decades, philanthropy has ebbed and flowed with corresponding economic, political, and societal shifts. After the 2008 recession, for example, many foundations shrunk their grants and paused their giving. In 2020, funders lifted grant restrictions and made efforts to move money quickly to address the urgency of a global pandemic. Now, with an incoming Trump administration intent on dismantling many of our public institutions, it is critically important for philanthropies to to lean into, rather than shy away from, commitments to equity and justice.
The philanthropic pendulum is a harsh reminder that nonprofit organizations are always at the whims of wealthy individuals and institutions. Somehow, these organizations keep chugging along with fierce commitment, tapping into their creativity and nimbleness to keep communities afloat. They continue to meet the moment and support vulnerable communities with vital services, systems change efforts, and policy advocacy.
So why are so many in philanthropy still focused on the antiquated question of nonprofits earning their trust, when it should really be the other way around?
As we look ahead to a very uncertain future for our social sector, this question is more important than ever, especially for those of us working to build and strengthen our multi-racial democracy. The incoming administration has been unabashed in its intent to dismantle major public institutions, including the Department of Education and the Department of Health and Human Services. The recent passage of HR 9495 could grant the U.S. Treasury Secretary free reign to revoke a nonprofit’s legal status based on unsubstantiated claims of supporting terrorist activities. And with a MAGA-leaning majority in all three branches of government, the communities that are served and supported by the nonprofit sector are even more vulnerable than ever before.
This is why we are calling upon philanthropy to step up in this moment to fill the gaps and alleviate the inequities that will be exacerbated by a Trump administration. It is time for all funders – especially those who are committed to trust-based philanthropy, equity, and justice – to direct your resources and influence in every way possible to protect our society from reverting back to the dark ages. We invite you to consider how you can be a better, more trustworthy funder in this moment of uncertainty. Here are some ways we are thinking about how trust-based funders can show up in these consequential times:
Give big and give boldly. Many foundations’ assets have grown in the short time since the election, and Trump’s business-friendly policies could keep that trend going upwards. This is a time for funders to increase payouts, give bigger grants, and use your risk capital to support the people and organizations that are most vulnerable. Ask yourself, What communities would most benefit from an infusion of unrestricted support to help strengthen their ability to weather the political storm? Whose lives will be impacted, or at stake, if we don’t give big?
Be prepared to protect and defend. People in power who care about justice and equity have a responsibility to protect and defend those with less power. Full stop. We don’t yet know the extent of attacks that we will face in the social sector, but they could range from legal battles, to cybersecurity threats, to physical harm. Bring on legal counsel to support you as you give boldly to support organizations that may be vulnerable to Trump’s policies. Create safe spaces for nonprofits to process and share their fears and concerns, and be ready to go further than your basic offerings of support beyond the check to cover things like legal and security costs, or even mental health support. Use your other powers to speak up, advocate, and testify in support of the social sector.
Listen to, and earn the trust of, those who are most vulnerable. Trust-based philanthropy encourages an ethos of servant leadership, with a focus on listening, dialogue, and humility. To be clear, this is not about “being open to all opinions” but rather listening to those who are furthest away from the power structures. Philanthropy has a unique opportunity to listen and learn from those whose lives and livelihoods are most threatened by this incoming administration, and to support nonprofits in listening to their communities. Earning trust begins with listening, responding, and modeling a sense of accountability to those who are most vulnerable.
Pool your funds to leverage your power. In the words of the well-known Burkina Faso proverb, If you want to go fast, go alone; If you want to go far, go together. Collectivizing resources in order to harness the power of well-resourced collaborative funds may be one key to moving strategically in these times. Panorama Global’s study of pooled funds via MacKenzie Scott demonstrates that collaborative funds can help reach historically underfunded communities, support grantee partners beyond the check, catalyze systems change, and raise visibility of community needs. Seek out existing collaborative funds that are aligned with your interests and values (for example, Ford’s Dignity and Justice Fund and Solidaire’s Black Liberation Fund) or consider creating a new pooled fund that is responsive to emergent needs. Through collaborative listening, collaborative funding, and collaborative accountability, we can advance some big(ger) wins for our communities.
Learn from movement leaders who’ve been fighting the good fight. While many of us may feel a sense of despair about this unprecedented moment, there are others who have been fighting this fight for a long time. In particular, Indigenous, Black, and trans movements have been under attack for quite a while, and their leaders have wisdom and learnings to offer for this current moment. Do your homework to get to know these leaders and movements; get curious, learn from them, and invest in their continued strength and stability. This is especially important as their uphill battles will continue well into the future.
There is no denying that the road ahead will be a tough one. Many of us are feeling anger, despair, and anxiety as we confront the reality of the incoming administration. Give yourself the time to grieve, rest, and recharge, and do what you need to channel your power to defend justice and equity.
Still, we may be more prepared for this moment than we think. There are thousands of organizations that have been strengthening the muscles and relationships that will prepare us for what is to come. More and more funders are recognizing that trust-based, equity-centered, solidarity-driven philanthropy is not a crisis response, but rather a long haul strategy for justice and equity. If we want to look back on this moment as a time philanthropy showed up in the best way possible – that we were trustworthy stewards of our resources to advance justice and equity – then we must ensure that our behaviors reflect that in our decision-making, in our relationships, in our grantmaking, and beyond.
Shaady Salehi is Executive Director and Co-Founder of the Trust-Based Philanthropy Project.
Pia Infante is Senior Fellow and Co-Founder of the Trust-Based Philanthropy Project.