Giving Compass' Take:

• There are three lessons for philanthropists based on critical takeaways of the midterm election results: money should go to movements, philanthropists can increase their donations, and they should focus on leveraging c(4) funding. 

• Why is it important to focus on c(4) funding as well as c(3)? What are the capabilities of 501(c)4s? 

• Read the Giving Compass guide for donors to support and build a better democracy. 

Small dollar donors nationwide gave more than $1 billion to support progressive candidates in the midterms. Latino youth voter registration in Texas increased by 500 percent.

One thing is clear from the midterm elections: Grassroots groups and ordinary people are going all out to defend democracy. Big Philanthropy should do the same.

The final weeks of the 2018 midterms offered us a dual vision of the future.

On the one hand, we got a chilling glimpse of just how high the stakes have become for American democracy under a Trump presidency, with the massacre of 11 Jews at prayer in Pittsburgh and of two African Americans at a grocery store in Louisville, bombs sent to political opponents of the administration, and militia forces heading to the border to enforce Trump’s xenophobic policies.

On the other hand, we got a remarkably inspiring view of ordinary people mobilizing in extraordinary ways to meet the challenge. We saw historic turnout and major victories to expand Medicaid, restore voting rights, fight gerrymandering and move towards a truly reflective democracy.

For at least the next 4 years (taking us through the critical 2022 redistricting process), foundations that care about saving American democracy and staving off the very real threat of American fascism can demonstrate that commitment in 3 ways.

  • Move money to movements
  •  Increase payout: The Wallace Global Fund has been a leader on this, pledging to double its payout in 2018. Nathan Cummings Foundation committed to increase its payout rate from 5.75% to 6.75% and maintain that rate at least through 2021.
  •  Leverage c(4) funding: Foundations and donors in a position to mobilize c(4) dollars should do so to complement their c(3) giving.

Read the full article about lessons for philanthropists by  Aaron Dorfman at the National Committee for Responsive Philanthropy