How Philanthropy Can Lead in an Age of Polarization

As we head into the heart of the U.S. election season, with heightened political and societal divisions, there is an increased urgency to drive progress on a host of social issues. Philanthropies, as stewards of the most flexible funding sources around, have an immediate opportunity to meaningfully engage—ramp up support to strengthen our democratic system, step in on sensitive issues as others step back and introduce new and nimble models of support to address a rapidly evolving set of challenges. This moment requires bold ideas and immediate action.  

Strengthening Our Democratic System

As political debates threaten to drive an even deeper wedge between communities across the country, sparking civic engagement and strengthening the structures that undergird our democratic system becomes ever more important. Funding opportunities abound: saving local news, re-building public trust in institutions, championing civics education, safeguarding voting rights, encouraging civic dialogue and engaging and energizing voters are all meaningful interventions.  

Yet, it is important to acknowledge that mixing philanthropic money and politics is controversial. Accusations against the Ford Foundation in 1967 of partisan use of voter registration efforts energized congressional action to limit philanthropic engagement in politics. Today, while scholars like Emma Saunders-Hastings warn against political philanthropy, the Unite America Institute is just one example of an organization pleading for philanthropy to get more involved. 

Voter engagement is a useful example to explore. Philanthropic efforts have long played a crucial role in safeguarding voting rights. The State Infrastructure Fund, a nonpartisan donor collaborative conceived in 2010, works to increase civic participation and advance voting rights among Black, Indigenous and people of color (BIPOC) and other historically underrepresented communities. Democracy Works, another nonpartisan organization, runs a host of tools and tech focused on protecting and powering U.S. democracy—including TurboVote and the Voting Information Project—and is funded by a growing list of foundations.   

Research shows that the impact of voter engagement efforts can be transformative, particularly among youth, BIPOC communities and those in rural areas for whom voting has never been easy. According to Nonprofit VOTE, engagement by nonprofits significantly increases voter turnout, with a 10-percentage-point boost observed among engaged voters compared to their counterparts. Promising models, like the Heartland Fund’s focus on rural communities’ civic engagement challenges, offer replicable approaches to targeting key populations. 

Institutional philanthropies gave over $5 billion to democracy-focused nonprofits between 2021 and 2022, according to Democracy Fund, and that number is expected to grow further between 2023 and 2024. There is truly no time to waste; as the All by April campaign lays out, a “wait and see” approach can be too little and too late, while early money helps nonprofits be more efficient and flexible, strengthening their reach and results.  

Stepping Up as Others Step Back

As polarization intensifies, a core set of issues consistently land in the political crosshairs. Racial justice is one such lightning rod. Progress achieved in understanding systemic racism and prioritizing racial equity through focused grantmaking is in jeopardy as organizations tamp down their support under the guise of risk management. While funding may be sustained, many funders—corporates, in particular—are quietly excising explicit references to serving Black or brown communities from their messaging, favoring terms like “economic disadvantage” over racial identifiers. 

Of greater concern is the momentum around the movement to label programs directly supporting Black or brown communities as divisive and discriminatory, fueled in part by the Supreme Court’s ruling against affirmative action in college admissions. More recently, an Atlanta federal appeals court suspended a grant program for Black women business owners, operated by the venture capital firm Fearless Fund. 

Some foundation giants, like McKnight, Marguerite Casey and Ford, are staunchly defending their focus on racial justice. Beyond the ethical arguments, there is also a strong legal push to protect the right to donate to charitable causes that promote racial justice. In December 2023, the Council of Foundations and Independent Sector filed a joint amicus brief in support of Fearless Fund, arguing that philanthropic grants are protected under the First Amendment of the U.S. Constitution. Nevertheless, some funders—particularly wary corporates and smaller organizations lacking significant legal resources—are noticeably reticent to engage. This marks a significant shift from the resolute commitment to racial justice expressed across both the corporate and philanthropic sectors in the aftermath of George Floyd’s murder. 

The moment is ripe for philanthropies to step up and ensure progress continues, whether the issue is racial justice, reproductive rights, LGBTQ+ progress or any number of other matters in the political spotlight. While continuity of funding is key, philanthropies can also provide support that goes beyond grantmaking. By convening grantees to enhance collaboration around shared goals, using their connections and clout to build networks of support around promising solutions and leaders and drawing attention to emergent needs, funding gaps and community-driven solutions, philanthropies can advance progress and prevent backsliding on a range of critical issues.   

Adapting Giving Models to the Needs of This Moment

As social issues become campaign focal points, traditional funders pull back in the face of reputational risk and public concern spikes, how philanthropies engage is often as important as where they channel their support.  

For organizations dedicated to advancing social issues in the face of political division and societal backlash, strategies exist to mitigate risks and affirm commitment. Funder collaboratives offer a platform for collective action and are increasing in popularity, with over half established since 2010. There is power in numbers, and pooled funding can oftentimes lead to more meaningful impact. For example, the Black Feminist Fund launched in 2021 with close to $30 million in seed investments from the Ford Foundation, Solidaire and Farbman Family Foundation. The Fund is doing critical work to power Black feminist movements by driving advocacy, funding research and giving multiyear grants that fundamentally change the way Black feminist groups are resourced.  

Another philanthropic model gaining traction is the rapid response fund. Originally a staple of humanitarian and disaster relief funding, these funds are evolving and adapting as critical needs emerge. For instance, the Groundswell Fund’s Rapid Response Fund launched in 2015 to support grassroots organizations  led by women of color, trans people, and low-income women in the fight for reproductive justice. The Fund later evolved to support organizations working across a broader set of intersectional threats to social and racial justice.  

Rapid response philanthropy is also an answer to increasing public demand. In the days following the 2022 Dobbs v. Jackson decision, for example, the Planned Parenthood Action Fund and Planned Parenthood Federation of America experienced a 40-fold increase in donations compared to a typical day, with over half coming from new donors. Similarly, during the 2020 U.S. election, new voting laws sparked concerns about voter suppression, leading to a surge in donations to support voting rights initiatives. 

Given the level of urgency crises often demand, rapid response funds often incorporate the principles of trust-based philanthropy, allowing funders to move money quickly to empower leaders and organizations on the front lines. Unrestricted funds provide organizations with the flexibility and nimbleness required to pivot in response to rapidly evolving community needs. And shifts in how funds are deployed need not undermine longer term goals around learning and impact. As the sector continues to shift, new frameworks for trust-based learning and evaluation are evolving to keep pace. 

The Path Forward

In this polarized landscape, philanthropies can be powerful catalysts for change, by bolstering our civic infrastructure, ramping up support for social issues as other funders step back and moving funds using innovative deployment and partnership models. Yet, the full extent of their impact will be judged on how quickly they can move. Now is the moment for action.