Two years ago, as COVID-19 spread to every corner of the world, the virus ushered in a slew of urgent needs while exposing entrenched issues of inequality and injustice. It was nonprofits that sprung into action to respond to the moment. They stepped up to tackle the pandemic’s sweeping impacts, providing immediate relief, protecting the rights of workers, addressing the concerns of historically excluded communities, and reimagining the systems and structures that are critical for a fair and equitable recovery.

While the demand for their services surged, organizations grappled with their own futures. With the markets in panic and economic activity in decline, they were forced to rethink fundraising, pull back on their programs, and shift their operations. Nonprofits are no stranger to financial hardship and shifting donor interests—in fact, half of organizations struggle to become financially sustainable. But COVID-19 posed an existential threat, requiring funders to reevaluate their support, become more flexible in their grantmaking, and innovate to increase the resources they could offer.

That’s what led us to issue a social bond to strengthen the social justice sector, the first ever issued by a philanthropy on the United States taxable corporate bond market. Most major foundations traditionally spend a little more than 5% of their assets in a given year, the minimum required under federal law for tax-exempt organizations, to allow their endowments to grow and continue to give. This unprecedented time called for an unprecedented measure. By issuing the bond—a financial mechanism more often practiced by governments, universities and companies—we were able to make the markets work for justice and nearly double our grantmaking to more than $1 billion to respond to the needs of our grantees—and society at large.

Over the last two years, we listened to and learned from the organizations we fund, and provided them with the additional support they needed to not only meet the demands brought on by COVID but to thrive, grow, and evolve in their work. They adapted and innovated amidst crisis and chaos, pivoted to take on challenge after challenge, and ultimately became more nimble, resilient, and impactful organizations.

Read the full article about a big bet for social justice at Ford Foundation.