3 Questions to Ask in This Era of Trump and Uncertainty

By Stephanie Ellis-Smith

“Not everything that is faced can be changed, but nothing can be changed until it is faced.”
— James Baldwin

Photo by Julie Aag

It has been less than a month since Donald Trump won the 2024 U.S. presidential election, and his inauguration is still more than eight weeks away. 

Given the freshness of the news and the uncertainty of what lies ahead, I am struck by the wave of commentators confidently declaring exactly why Trump won and detailing exactly what philanthropy and the nonprofit sector must do to prevent the awfulness they are certain is to come.  

I tend to agree with Adam Grant that the future is unknowable and that humans — myself included — are terrible forecasters. Our brains are programmed to seek evidence that validates our beliefs, and in times like this, we must be especially careful with our predictions. 

So rather than share advice based on my own guesses about the next four years, I will  share three questions that I believe all of us — advisers, donors, nonprofit leaders, fundraisers — should be asking now. 

By doing so, I am following the advice we give to our clients when the way forward is unclear: We get curious. We summon the courage to face uncomfortable truths head on. And we resolve to act differently based on what we learn. 

Do we have the stamina to fight for justice over the long haul? 

Much has been written about the cascade of “rage giving” and the resistance movement that followed Trump’s first election in 2016. It remains to be seen whether a similar surge of activity is underway now. There is certainly value in quick-response gifts that fund legal and policy efforts to advance causes that donors care about, particularly in areas like immigrant rights, racial justice, and environmental protection, where Trump has signaled loudly that he plans extreme rollbacks. 

But donors and nonprofit leaders would do well to pace themselves and plan for a long, drawn-out battle. If we learn nothing else from this election, we should heed what real resistance looks like. It’s patient, it’s organized, and it’s unrelenting in its pursuit of its goals. 

We need stamina and patience to keep pushing on creating an equitable and truly democratic nation. While we have a few long-game wins of our own (see marriage equality), we can still be too quick to follow shiny new theories or fads that may be great in a moment but can still pull us off course. Will our multi-factioned coalition of social justice practitioners be able to find a pace that is slow and steady enough to be sustained over many decades, yet with the same sense of urgency that moves us forward?

Philanthropy was meant to fund the gap left from government services. What do we do if the gap becomes a canyon?

While we cannot purport to know what the future holds, we can take seriously what we’ve been told about immediate plans for change. For example, we know that Elon Musk and Vivek Ramaswamy will team up to run the Department of Government Efficiency, a new agency to cut “waste” from other federal agencies. They and their acolytes are signaling drastic cuts or even the elimination of the Environmental Protection Agency, the Department of Education, the National Endowment for the Arts, and more. 

Taking these announcements at face value, donors and nonprofit leaders must plan how to serve their communities in these crucial program areas without their federal government partners. For example, what does the conservation and environmental movement look like with no EPA? Philanthropies  often promote  approaches that incorporate  lofty and sometimes academic theories of change, celebrating those that are laser-focused on fixing “root causes” or changing entire systems that contribute to intractable problems — while overlooking the need for day-to-day support.

If these agencies are dissolved and their funding dries up, donors will need to invest more in direct service while also devising new strategies for longer-term change. We may face unprecedented and urgent needs for basic assistance in our communities.  What role will philanthropy play to, at minimum, take care of the daily needs of our fellow citizens? What could the modern version of old-school “charity” look like?

If a hole is left by the withdrawal of government funding, will we allow ourselves to organize and fund in a way that is responsive to our communities without judgment, and without unhelpful infighting about what “good” and “effective” philanthropy looks like? 

The rich are likely to get richer. What will they do with the surplus capital?

Trump gave tax breaks to the wealthy in his first administration with the 2017 Tax Cut and Jobs Act and has signaled his intention to do more of the same. Investors are seeing their portfolios soar since the election. The one prediction I am willing to make is that wealth inequality will worsen as the rich get richer. 

Many philanthropists will have more resources than ever before. Call me a cynic, but I’m not sure their gains will translate to bigger gifts to the sector. While I hope I am wrong, this election was won by stoking fear in the electorate. The unpredictability of what the Trump administration may do, and when and how, likely means prolonged periods of unease and uncertainty ahead. 

Will the wealthiest take that as a sign to squirrel away more of their assets for themselves as a hedge? That’s a tough question to ask, and the answer may be even harder to hear, but history (and human nature) indicates that periods of extreme uncertainty and “scarcity thinking,” drive people to act more in their own self-interest rather than for the common good. 

I’m grateful that there are so many community-minded donors who care about underserved communities and underresourced issues. I hope their numbers rise in the coming years. But it would serve us well as a sector to understand the emotional and economic motivations that drove the election’s outcome and to ask how we may engage an increasingly fearful, and at times self-interested, population. 

No doubt there will be many more questions to ask and hard truths to swallow in the weeks and months ahead. But for now, my message to my peers and colleagues is to face our future with courage. We are such an optimistic bunch; we have to be to do what we do. We must have faith in our convictions and that we won’t be shaken off course, even when we’re forced to ask tough questions of ourselves. 

Finally, to all indefatigable donors and community organizers out there (especially to my Black sisters), make time for rest. We are in it for the long haul, and whether the electorate at large recognizes you for it or not, you make this world go around, and we would not be where we are today without you.

(Originally published in The Chronicle of Philanthropy Nov. 21, 2024)

Funding Rest as Community Care

Silhouette of woman in sunset standing on a hill. Photo by Michael Bruna.

By Celiz Aguilar McClish

My friend was sharing about her recent health struggles as we were walking along a rocky shore on the Puget Sound. We reflected broadly about who has access to care and wellness in the United States, regardless of income, education level, citizenship status, or geographical location. And as an Organizational Psychology practitioner and former caseworker, I can’t help but consider this question in light of the nonprofit workplace. Who has a right to be well at work?

I unequivocally believe that everyone has a right to be well at work. And while every sector has its share of challenges supporting employee well-being, there is a special imperative for philanthropy to prioritize broadly funding wellness within the nonprofit sector. 

Well-Being and Work 

The Center for Effective Philanthropy defines well-being as “as the state of employees’ mental and physical health” and notes that it is influenced by workplace culture and opportunities for growth. Similarly, the field of Organizational Psychology advocates for Decent Work, which is work that provides fair wages, job security, and opportunities for personal growth. When employees are well and can engage in decent work, they are more likely to meaningfully contribute and have longer tenures.

However, the reality for many nonprofit organizations is that their workforce is underpaid, overwhelmed, and understaffed. In a recent report by the National Council of Nonprofits, 74%  of nonprofits surveyed reported job vacancies, with public-facing positions experiencing the most vacancies. And at least half of respondents identified that stress and burnout is a top factor impacting their ability to recruit and retain top talent across all levels of the organization. 

In a study of nonprofit CEOs, The Chronicle of Philanthropy found that, while CEOs love their jobs, the challenges of retaining strong talent, balancing work and life, and fundraising can be too much to bear. One-third of CEOs surveyed said they are likely to leave their position within two years. This doesn’t even begin to scratch the surface of the additional burdens BIPOC leaders face. (See: Women Leaders of Color Are Exhausted. Philanthropy Needs to Step Up). But perhaps most concerningly, the Center for Effective Philanthropy found that 75% of leaders surveyed believe that staff burnout impacts their ability to impact and serve communities. 

Impact to Community 

When nonprofits are understaffed and employees are overworked, programs and vital services for the public are significantly impacted. Specifically, “there are longer waiting lists, reduced services, and sometimes elimination of services,” which can have far-reaching effects on communities and individuals. For example, a delay in housing services could result in a period of homelessness for a client. 

There is also a significant loss of institutional knowledge and shared history when turnover is high. While a challenge in any sector, it can slow progress in a highly-relational, resource-strapped field like the nonprofit sector. I experienced this first-hand as a caseworker for refugees and immigrants when colleagues—who had worked for years to build trust with key community members—left positions and, as a result, took relational knowledge with them. 

Hopeful Paths Forward: Unrestricted Gifts and Wellness Funds

If the problem seems bleak, the opportunities for creating change should inspire. Philanthropy is uniquely positioned to be a partner in creating systemic social change by strengthening organizations and their wellbeing. While there are a myriad of ways that this can happen, we at Phīla recommend unrestricted giving and dedicating funding specifically toward wellness. Both of these giving mechanisms demonstrate trust in the organization and offer much-needed support beyond what is offered through traditional grants. 

Unrestricted giving, a tenant of Trust-Based Philanthropy, allows the grantee to determine where funding is most needed. Grantees may put funding towards building repairs, programming, or salary increases—which are necessary to attracting and retaining staff given that three-out-of-four nonprofits stated that salary competition impacts their staff retention. 

A Phīla client recently supported a nonprofit with an unrestricted gift, reinforcing that the grantee could use the funds as they saw fit. The grantee later shared the impact with us: 

Thank you so much to the [redacted] Family Fund. WE raise our hands up to you all for helping us with our work and giving us your blessing to use it where it is needed most.

One leader also provided this feedback: 

You know it is the first time in years that I have felt like I have room to breathe. Knowing when to take a vacation is not easy in the nonprofit world and I think yesterday was my first real day off in a long time. Thank you all for helping with this necessary day of self-care and healing.

Clearly, unrestricted giving can provide a welcome reprieve for hardworking staff. 

Philanthropists can also engage in funding wellness, which can take on a variety of forms. By strategically funding rest and wellness initiatives, philanthropists can support the longevity and well-being of the nonprofit staff, thereby supporting communities and individuals with better services. 

The Share Fund, a philanthropy supported by Phīla, has an Opportunity Fund that is designated to “benefit the health, aspirations and broader well-being” of the grantee’s employees and is entirely separate from unrestricted funds for general operating expenses. Grantees can spend funding on coaching, professional development opportunities, childcare, fitness classes, or even a trip like one nonprofit used as a way to thank their home health aids. There are so many ways to fund restoration.

When employees are invested in and are equipped to thrive at work, they can engage and contribute meaningfully to their organizations. And what better sector to invest in employee well-being than one that provides vital (read: life-saving, poverty-alleviating, hunger-reducing) services to communities?

In a perfect world, nonprofits wouldn’t need to exist because communities would be self-sufficient and could meet their own needs. But until that day comes, we invite you to strengthen communities by strategically supporting the organizations that serve them. 


Resource: Additional Organizations Funding Wellness

  • The Boston Foundation partnered with New Sector Alliance to offer a Leadership Longevity Fellowship to strategically invest in the professional development and wellness of mid-career nonprofit managers. 

  • Allstate Foundation offers free leadership development to nonprofit leaders and staff. The foundation also awarded nearly $400,000 in grants for wellness initiatives. 

  • The Skillman Foundation has the Well Fund which supports the “wellness and capacity of BIPOC-led nonprofits” serving youth in the Detroit area. Awards support general operating funds, leadership development, and wellness activities. 

  • The Seattle Foundation launched the Black-led Joy and Wellness-Fund to combat some of the funding inequities that Black-led organizations face. The fund focuses on supporting the “physical, mental, and emotional well-being of staff at Black-led organizations.” 

  • Inspired by conversations with grantee partners, the Imago Dei fund created the Keep the Spark Alive program to combat exhaustion and revive leaders. The program was created to be as “non-burdensome as possible” with rolling applications, quick approvals, and minimal reporting requirements. 

2024: Noteworthy Trends in Philanthropy, Part Two

Photo by Jon Tyson

By Sofia Michelakis

We are thrilled with the response to our first three trends last month–the rise of financially independent women, the importance of democracy giving, and the impact of AI on society. Our survey is still open for you to share your thoughts, including what resources would be most useful. So far, engaging in Democracy is slightly edging out the other two topics for our readers, so we are preparing a giving guide for donors this political season. If you’d like to receive a copy, email Sonia to register your interest. 

And now onto Trends 4 and 5, both of which are especially resonant during Black History Month. Combating DEI Fatigue and Wealth Supporting Racial Repair are growing methodologies for how givers are addressing racial equity and justice. 

Trend #4: Combating DEI Fatigue

Inside Philanthropy found mixed results in their study on whether the billions in philanthropic pledges to DEI and racial justice in 2020 following George Floyd’s murder have come to fruition. Simultaneously, there are large retrenchments on DEI in corporate America. And of course, last summer’s Supreme Court ruling on affirmative action in Students for Fair Admissions is another setback for advancement on closing racial gaps in education. 

We don’t believe that the Students ruling should cause individuals and families to be concerned that giving plans to promote racial equity will actually be threatened. But warnings that the Students ruling could get extended to race-conscious funding decisions, scholarship programs, and other areas could give license to excuses for cutting back on philanthropic racial equity programs. This larger social context and culture of waffling around DEI has an impact on individuals and families and the way they give. We suggest that givers begin with a thorough examination of what kind of impact their giving has on communities of color and who benefits the most by their decisions. 

We have been sought out by many individuals, families, and donor collectives to gain practical learning and knowledge of how to center racial equity and justice in one’s giving, particularly the "first steps" funders can take. From these engagements we know that donors are more apt to act when they learn from social investor peers who are doing this work well, and will ultimately find joy and true inspiration by practically connecting money to meaning.

Undoing generations of racial injustice is not going to be solved in a matter of years. We are buoyed by these clients and other philanthropists who are staying the course in their racial equity journeys and integrating their values into their philanthropic plans. 

Some of the examples of givers leaning into DEI who inspire us:


What to make of this trend: Donors who are concerned about the growing opportunity gaps for Black Americans and Native Americans have many choices. It may be possible to fund efforts to pursue equity within elite institutions in compliance with Students, which has left a small crack open for “race neutral alternatives” like being a descendant from enslaved Americans. In addition, donors may invest in post-secondary schools where the vast majority of underrepresented racial minority students are currently receiving an education. We believe that community colleges are an outstanding place for donors to consider for their philanthropic investments. (See an earlier blog post on this topic.) Most community colleges are experiencing reduced public support and rarely receive large support from alumni donors to augment their resources. Also, HBCUs are seeing rising applications over the last several years, many due to the anticipated Supreme Court ruling, and are another great place for donors to give. 

Trend #5: Wealth Supporting Racial Repair


We have seen a variety of philanthropic efforts showcasing how wealth can be a vital tool for repair. First, a note on terminology. Reparations is a broad term used to describe a process of addressing, healing, and restoring a group of people injured because of their group identity and in violation of their human rights. Expert social movement leaders are pursuing a case for state and federal government racial reparations in the US for Black Americans as a result of not only enslavement, but also its aftermath of Jim Crow, redlining, mass incarceration, and other forms of systemic racial oppression. In this post, I am using racial repair to describe actions by individuals and families to address and remedy harms committed by their predecessors or ancestors. 

There is a growing trend of wealthy individuals and families bringing a lens of racial repair and power shifting into their giving. Whether or not they are funding racial reparations movements (and many are), these donors are not waiting for the government to act in order to respond with accountability and consistency with their racial justice values. Some examples:

  • The Libra Foundation, started by members of the Pritzker family, is committed to moving money to groups building BIPOC power. 

  • The Share Fund’s Bill and Holly Marklyn believe in shifting wealth and power to communities in their grantmaking and in their investment practices.  

  • The fourth generation of a legacy family client of ours decided to address their family’s origin of wealth created by extractive forms of capitalism by creating a new giving entity that directly engages with the communities who were harmed decades past.

As our taxation structure becomes more favorable to the uber-wealthy and the stock market continues to show record gains, those with the most financial means are beginning to ask a new version of the age-old question “how much is enough”. Now for many, the question is “how much is too much?” 


What to make of this trend: There are resources that can help you learn and explore effective ways to apply your wealth to racial repair. This often begins with understanding your family history and wealth origin story. While at times the work can feel heavy, we’ve found that donors ultimately find huge satisfaction and joy in coming to terms with the past so that they can face the future with a deep sense of purpose and integrity. At Phīla, we regularly work with multi-generational families on examining the meaning and purpose of their wealth as a path toward justice. Increasingly, we are asked to facilitate family meetings around sensitive topics and develop customized plans that reflect the intentions behind a family’s revised legacy that honors their efforts to repair harms of the past. As long as wealth continues to accumulate at the pace it is currently, we do not see this trend slowing. Philanthropists who are attune to the racial wealth gap will continue to find novel ways to redistribute wealth to those who have long been denied it.

It has been an enlightening exercise to examine these trends and report out our interpretations. I hope you enjoyed this series as much as I did. It will be interesting to look back a year from now and see where we will be. While I can’t predict the future, one thing is certain, we are living in the middle of a profound period of change as the old ways of giving become more and more antiquated. Where this all takes us is a question for the ages. Thank you for taking this ride with me! And as always, never hesitate to reach out to me or anyone else on the team with questions or comments.

***

Additional Resources

  • For a thorough legal analysis of implications of Students for Fair Admissions for the charitable sector, read Davis Wright Tremaine’s memo, which addresses why values-based grant programs that prioritize racial disparities should be safe from legal challenges. 

  • If you are interested in joining other donors to pursue racial reparations at the federal and state level, contact Liberation Ventures. Also, you can learn more about the role of philanthropy to build a culture of racial repair in this article that they co-authored with Bridgespan. 

  • The Decolonizing Wealth Toolkit created by Edgar Villanueva and the Decolonizing Wealth Project is a good starting point for beginning a racial repair journey. 

  • The Good Ancestor Movement, founded by Stephanie Brobbey, is a UK advisory firm working with families to help them redistribute wealth and restore communities and natural resources. 

2024: Noteworthy Trends in Philanthropy, Part One

By Sofia Michelakis

My 8th grade school photo with my “bi-level” (aka mullet) cut

I refuse to accept that the mullet is back. For me, that hairstyle will forever be associated with awkward middle school dances. Maybe that’s why I always view the onslaught of New Year predictions and trends with a healthy dose of skepticism. 

At Phīla, we serve a wide range of high net wealth individuals, couples, and families. We are discerning about separating meaningful trends from fads which, like my 80s mullet, are best quickly forgotten. In this post, we share the first three of the top themes we’ve been noticing and how givers wanting to have a deeper social impact could apply them. In future segments, we will share additional relevant trends. 

Trend #1: The Rise of Financially Independent Women

Whether because they earned it themselves or came into financial abundance through divorce, death of a spouse, or other inheritance, women are increasingly holding the reins of large amounts of wealth. In 2020, McKinsey & Company predicted a massive wealth transfer in this decade, with White women baby boomers as the biggest recipients. According to Fast Company, women currently control $11 trillion in assets, and that figure is expected to nearly triple by 2030. We see this growing trend in our client base as well. 

However, even when they have financial power, women can sometimes second guess themselves and their decisions about how they deploy their wealth or have their priorities minimized. We have observed that women–especially those over 60 in that baby boomer demographic–often defer to the men in their families and others who are so-called “experts”, even when those men are of similar age, education, and intelligence. 

To be sure, the finance industry is in need of an overhaul to better serve the philanthropists of today and tomorrow, as has been aptly written about elsewhere. Over the past few years, we have increasingly engaged with our clients and like-minded wealth managers and other advisors with a common goal of helping women gain more confidence in determining the purpose of their wealth and becoming more effective financial stewards. 

What to make of this trend: To our women readers, we want to support you to step into your financial power with confidence. When it comes to where to invest your philanthropic dollars, you likely know more than you think you do. Whether it’s cheering you from the sidelines, coaching you behind the scenes, creating space in meetings for your voice, or connecting you to fellow women travelers in philanthropy, we have your back! To our male readers, we are looking for allies. Support the women you know–your spouse, your mother, your sister, your colleagues, etc. Validate them, support their decisions, advocate for them to be recognized in leadership roles, ask questions to understand and learn, and be willing to listen.

Trend #2: Engaging In Democracy Is Social Impact

Regardless of your politics or whether you have a political giving strategy, this year’s election will have huge consequences for every sector and every cause about which you care. You will no doubt be asked repeatedly to give to candidates, but that is certainly not the only way to be active in this year’s election cycle.

Some people reflexively believe that their political giving is not part of their social impact strategy. We think differently. We do not cede the final say on defining social impact to the IRS, which simply defines rules for what can be considered tax deductible or not. Political giving and engaging in democracy can be part of a holistic social impact plan.

Several of our clients have begun exploring the connection between unions and democracy. Indeed, the Democracy Alliance has noted strong evidence that “Labor unions are the countervailing force the United States needs against nearly every trend eroding democracy, including rising political polarization and extremism, partisan pressure on the electoral process, harmful immigration policies, and growing wealth disparities.” 

Other clients are asking their current grantees about how they are engaging in advocacy activities at the local and national levels, either as a 501(c)(3) or through an aligned 501(c)(4) entity. In addition, we are currently supporting a few of our clients to bring in political advisors when needed to develop a specific, targeted giving strategy for the 2024 election cycle, integrated with their overall social change vision.

What to make of this trend: Don’t silo your political and philanthropic giving. Be sure that the staff and advisors with whom you work are informed about your goals and interests in democracy and elections so that they can better harmonize your giving strategy. You may find out that you can use philanthropy as a tool to advance many of your interests in supporting a healthy democratic society.

Trend #3: How Philanthropy and AI Intersect

The potential threat of AI to society and the social causes you care about is less about machines run amok ala the Terminator films, and more about what the government and your fellow humans might do. Think of AI as a ridiculously powerful tool – in the right hands, it may provide unique ways to speed scientific innovation and create social good; but in the wrong hands and without appropriate guardrails, it can be misused and lead to greater inequality, oppression, and other harmful consequences.

Common concerns about AI include future disruptions in the labor force, potentially putting millions out of work. But the impacts are not just theoretical. Crucially, we are already witnessing significant harms today. AI technology is already responsible for cutting safety net benefits, placing kids with loving parents into foster care, and falsely accusing Black and brown people of crimes.

There are huge ethical questions about this new technology, both in who benefits and who makes decisions. Philanthropy can play a significant role in ethical approaches to AI, as we know that under-resourced populations are less able to advocate against well-financed corporate interests. Several field-building initiatives are already emerging to foster more shared intelligence and agency around the philanthropic response to AI. For example, through a network of philanthropic advisors in which we are actively engaged called “P150,” we have been exposed to some of the leading thinkers who are exploring the big questions for philanthropy and AI. One of these experts, the Effective Institutions Project, has put together a funder’s guide to AI governance and strategy, which offers both a broad framework for thinking about philanthropic opportunities in AI and examples of specific organizations doing impactful work. 

What to make of this trend: Consider how AI will impact the social issues you care about as well as the implications for your own philanthropic organizations. We can help you identify nonprofits engaged in areas such as policy development, research, advocacy, talent development, technical assistance, and field-building that could benefit from additional funding. We can also facilitate family / board meetings to discuss ways to align the implications of AI to your philanthropic organization’s values.

We would love to hear your thoughts about these and other trends that are top of mind heading into the new year via this two minute, confidential survey. We’ll check back soon to share survey results along with trends 4 and 5. Stay tuned! 

Resources

Women Becoming Confident Financial Stewards


Ideas for Engaging in Democracy


Learning More About AI and Society