In this session, Give Outside the Box: CDFIs, Direct Giving, and Advocacy 501(c)(4)s, panelists share innovative ideas on how to move money to strengthen collective giving and community-based efforts beyond U.S.-based 501(c)3 nonprofits to sustainably fund systemic change.

The Awesome Foundation: Granting Money Directly to People and Communities

Maria Dautruche from The Awesome Foundation spoke about the organization’s model, in which trustees give $1000 per month with no strings attached and don’t require any reporting from local grantees with funds that are “by neighbors, for neighbors.” The trustees are residents who support community-based (and led) projects they deem “awesome.” 

Proposals range from housing justice to water balloon fights in the local park. Each trustee contributes to the $1000 grant size for 12 yearly grants, one a month. This global movement has 73 chapters in eight countries and has granted nearly $7 million since its inception.

Unrestricted funding in collective giving spaces can significantly support community-led initiatives and individuals who want to see their neighborhoods thrive. Here are key takeaways from this model:

  • Giving money directly to individuals without questions or reporting requirements can help expand the range of people who give and the results they achieve. 
  • Collective giving practices don’t have to be difficult. It can be accessible and easy. 
  • Funding community-led ideas helps fund and build trust in philanthropy.

The Impact of c4 Giving: Moving Charitable Dollars to Causes That Matter

Maria Rodriguez discussed the work of the Valiente Fund, a donor-funder collaborative fund that is part of the Way to Rise initiative to unlock the potential of Latine change agents. Rodriguez highlighted a critical difference in c4 giving: “There's an unlimited ability to lobby and an opportunity or capacity to do electioneering.” 

Rodriguez offers, “The assumptions around wanting to do c4 are first, that we want big change. We want change, and we want it big. And now we can't afford just to relieve people's pain. We need to get radical. And by radical, I don't mean militant or troublemaking. I mean, get to the root causes. So, instead of addressing symptoms, we want to look at systems. So that's part of the approach and understanding we lean into.” 

Rodriguez explores three considerations about c4 giving: 

  1. Unfortunately, those working on the other side of our issues engage in politics that undermines the impact of our giving. However, research indicates that many voters support the charitable sector working with the government to solve problems. 
  2. Be bold and ambitious, but starting small is okay.  Incrementalism is how most of the change in this country happens. 
  3. Leverage intermediaries. Sometimes intermediaries are the people and resources that can contribute more and take on more risks to implement strategies. 

Look Beyond Traditional Practices of Charitable Giving to Make an Impact

Mindy Freedman, founder and president of The SAM Initiative, shares, “I believe we can give in a way that expands philanthropy to meet changing needs of communities and supports sustainable social change for individuals and organizations towards less dependency and a more empowered future.” 

Freedman founded this group in 2013 as a traditional giving circle focused on grants for women, children, and families. They started to turn to alternative philanthropic practices to unlock more capital and explore their impact.

Freedman offers three ways that the SAM Initiative stretched its efforts beyond traditional philanthropy: 

  • Social entrepreneurship: Nonprofits with income-generating programs where revenue is invested back to those they serve.
  • CDFIs /microloans: Community development financial institutions provide funding and services to help entrepreneurs with their businesses.
  • Recoverable grants: Funds that are returned to the organization to use toward operational sustainability or as an opportunity to redeploy funds back into the community.