The World is on Fire. Funders Need to Take Action.
I was attending a funders conference in Chicago when the news broke of the racist terrorist attack at the local grocery store in Buffalo, New York. Conversations turned immediately to the role funders can play in addressing the white supremacist ideology that resulted in these murders—and that continues to oppress Black, Indigenous, and other people of color every single day in this country. The dialogue—which focused on putting power in the hands of community-based leaders and organizations—was inspiring. But these conversations often happen after a tragedy that shakes us. The question is: will funders really take the action that’s needed, as our country comes apart at the seams?
The philanthropic sector is known for being staid, cautious, and even plodding—measuring out investments bit by bit, and year by year, to produce incremental change. But funders have power, and there’s never been a more important moment to act with boldness. As one of the conference speakers said: it’s time for philanthropy to go beyond what's practical and pursue what’s possible. At Emergence, we believe these are the places to start.
Go Beyond Being Anti-Racist
George Floyd’s murder two years ago led more of us to recognize what it really means to be Black in America. Across the country, individuals and organizations—including foundations—engaged in long-overdue conversations about how to be actively anti-racist. In that moment, funding flooded into Black communities through the philanthropic sector. But as the emotional reaction to the initial tragedy faded, that increased level of giving has waned.
Breaking down systems rooted in white supremacy is going to take so much more than that initial reaction. It demands a long-term and unshakeable commitment and strategy—and philanthropy can and should help power that movement. I believe that means going beyond being anti-racist—and taking a pro-Black, pro-Indigenous stance first.
What does that look like in practice? It means framing your funding priorities around the fact that our nation was literally founded upon the injustice done to Black and Indigenous people; that justice cannot be achieved until those original harms are addressed; and that Black- and Indigenous-led organizations must define our path forward. It means throwing your commitment, energy, and resources behind those organizations and communities—and staying the course. It means choosing the radical act of putting control in the hands of Black and Indigenous leaders.
Acknowledge who is really taking risk.
The Buffalo shooting—which happened just days before the second anniversary of George Floyd’s murder—is yet another reminder of the tremendous risk that is part of simply being a Black person in this country. We know it is vastly more dangerous to be a person of color in this country. Yet in our work in fundraising for community-based organizations, it is foundations and funders that consistently lean on the concept of risk to make decisions around funding.
Our clients hear it all the time: “it’s too risky for us to invest in you.” The reasons vary: they are too rural, or don’t have enough capacity, or are too new as an organization, or because the systems they work in are too complex, and the list goes on. Obviously foundations need systems and policies to manage their resources effectively, but relying on risk as an excuse not to fund community-based organizations with incredible potential is more than just a lost opportunity. It’s a way to keep control in the hands of those who already have power—rather than distributing that power where it’s needed most.
Unlock capital now (and with fewer strings attached)
By law, foundations only have to give away five percent of their endowment each year—and many set their annual giving based on that figure. For foundations large enough, that essentially means their endowments will live on forever, keeping resources—and the power and control that go with them—centralized where they’ve always been. Communities are left without the resources they need so that foundations can avoid risking their endowment.
Today, as democracy is imploding, violence is increasing, and white supremacy remains as entrenched as ever, the question is clear: why aren’t foundations unlocking more capital and funding community-based solutions that can really drive change? Going beyond the minimum level of giving doesn’t mean abandoning all grant-related policies and practices—but it does mean that grantees working on the ground in their communities can implement solutions and drive change faster. It’s been refreshing to see MacKenzie Scott’s perspective; as she said in her 2019 Giving Pledge letter, “My approach to philanthropy will continue to be thoughtful. But I won’t wait. And I will keep at it until the safe is empty.”
Ms. Scott’s commitment to shifting power and resources faster shows a deeper level of trust in community leaders' ability to address some of the most complex challenges imaginable. And that kind of massive system change takes decades, not months or years. Funders need to demonstrate their trust by providing larger grants, that last for longer periods of time, and that allow nonprofit staff to focus on their work rather than on proposals and reports.
Many funders simply don’t understand or acknowledge that, just to keep operating, most nonprofits have to apply to numerous foundations annually, each with their own specific, often lengthy application, and each with a different deadline. They have to juggle reporting back to their funders while trying to move their work forward. And given that most grants are time-limited, as soon as one grant proposal is completed, they have to start another one.
Imagine the incredible work that could be happening in communities if that burdensome process was lighter? Foundations often want to fund innovation, but what about innovating the process of actually getting a grant? There are so many options—from reducing the complexing of applications, to working within the philanthropic sector to create a shared application that streamlines what community organizations have to do to seek funding, to replacing formal, written reports with less formal and more personal conversations. Reducing the burden on nonprofits is another way for foundations to shift power into communities’ hands.
Shift your perspective—and practices—from funder to partner
There’s an automatic power dynamic between funders and grantees that suppresses real connection. Anyone who works in a nonprofit knows what it feels like to plan a funder visit—and the scramble that ensues to portray a flawless appearance. Even if it’s not what a funder actually wants or asks for, the power differential creates an expectation—one that is rooted in the nonprofit’s fear of losing essential funding.
I wrote recently about community-centered fundraising and how nonprofits can identify funders who truly place trust, power, and resources into the hands of community leaders. But the burden shouldn’t fall on the shoulders of community-based organizations alone. It’s time for foundations to redefine how they work with grantees—and to serve as true and equal partners.
Reducing the burden of applications and reports is one place to start—but the solutions go far deeper. Traditionally funders ask to see proof of progress and impact. But what if that focus shifted, and funders spend more time asking grantees what they need–beyond funding–to lift up their solutions? What if funders spent more time reducing the barriers and burdens grantees are facing? The funder/grantee relationship then begins to build on equity and respect—not on power and resources.
Even more critically, it’s time for funders to stop asking nonprofits to center their work solely on the trauma in their communities. For good reason, grantmakers want to address the deepest community needs. But that means, from the very first word of a grant proposal, nonprofits have to dwell in the most dire challenges facing their community—putting poverty, violence, and grief almost on display.
Grantmaking strategies don’t have to center harm and trauma. They don’t have to be a reaction to another tragedy or death—even if that reaction is well-intentioned. If we acknowledge the role that white supremacy has played in our country, there isn’t a need to replay again and again the harm it continues to inflict on Black, Indigenous, and other communities of color. Instead, we can focus on the community-led solutions that are leading to healing, to wellness, and to joy. Funders can choose to lift up and support Black and Indigenous organizations for their creativity, art, and advocacy—rather than for how much they’ve been traumatized.
We are eager to work with Funders that are interested in taking the leap to change their grantmaking strategies to better be aligned with this direction. Through trust and belief that communities really do hold the solutions to the challenges they face, real systemic changes are in sight.