Nonprofit AF

Funders, here’s the blueprint for saving democracy

Posted on April 14, 2025April 15, 2025 by Vu

[Image description: A protestor in front of a tent, surrounded by several signs. One that stands out says “Stay the course, this will happen to YOU” accompanied by several pictures of war and suffering. Image by greyerbaby on Pixabay]

Two weeks ago, I met with a colleague who was invited to a convening of funders in Seattle. He reported that the funders present were wringing their hands, unsure of what their foundations should be doing to respond to the rapid dismantling of democracy and the exponential increase in suffering communities are facing.

This week, David Callahan of Inside Philanthropy wrote a post on LinkedIn reporting similar dynamics of tentativeness among funders across the sector. David suggests several possible reasons for the hesitation, including shellshock from the cruelty and chaos unleashed by this administration, as well as funders’ lack of knowledge and confidence as to what strategies would work to counter it. While David and I agree on a lot of things, it’s this last point he makes where we may differ in opinions:

“Third, there’s only so much that funders can or should do to lead. Philanthropy’s main role is to support civil society groups, who rightly should be out front in the pushback to Trump’s actions. If those organizations aren’t coalescing around a set of promising big strategies — and there’s no sign they are — funders have limited options. They can’t bankroll grand new plans to fight MAGA if such plans don’t yet exist.

“Or, as one foundation CEO told me, ‘People keep yelling at us to give out more money, but for what?’”

Script for Lord of the Rings, if it were set in nonprofit and philanthropy

Posted on March 17, 2025March 18, 2025 by Vu

[Image description: A house built from a hill, with a round door, covered in plants, including a tree growing out of it. There’s a sign on the fence that says “No admittance except on party business.” This is a scene from Hobbiton, a set built for the Lord of the Rings movies. Image by Thandy Yung on Unsplash]

Hey everyone, hope you’re hanging in there. I’ve been watching my favorite movies as a break from the horrors of the real world. Some are very inspiring. Lord of the Rings, for example, has lots of parallels to our world, including an all-consuming evil and band of heroes trying to save the world. Which, of course, makes me think about what if LOTR were set in our sector. Below is the sample script. Let me know what you think.

***

SCENE 1: RIVENDELL

GANDALF: Despite our best efforts, Sauron has awoken. We have never faced such a threat. As we speak, his forces of foul orcs and Uruk-hai march across all of Middle Earth, laying waste to the land, bringing terror and destruction, especially to the most vulnerable.

ELROND: We must form a fellowship and journey to cast this Ring of Capitalism into Mt. Doom while the rest prepare for war. That’s the only way to defeat Sauron and his evil.

BOROMIR: One does not simply end capitalism. Even with the finest warriors in the land, the odds do not favor us.

FRODO: Still, we cannot stand still and watch the people we care about get slaughtered. You have my organizing skills.

ARAGORN: And you have my advocacy expertise.

LEGOLAS: You have my grantwriting skills.

GIMLI: And you have my logic model.

ELROND: Excellent. Then let us—

SAM: What about you, Mister Elrond sir? You have all the gold and mithril. Will you contribute them to the fight?

ELROND: We have been giving out 5% of our gold every year for you all to fight evil. If we give out more to fight Sauron, we will deplete our cache and then what happens when Sauron is defeated, where’s the funding to rebuild?

SAM: But Mister Elrond, we won’t be able to defeat Sauron if we don’t have enough resources. He’s burning everything to the ground. There won’t be anything to rebuild!

LEGOLAS: He does have a point…Maybe we should increase the gold we give out, from 5% each year to—

ELROND (raises up one hand): We elves do not meddle in the affairs of the lesser beings of Middle Earth. We watch from a distance, giving out 5% of our riches, and then we go to the West to the Undying Lands, the Land of Perpetuity, where as usual none of this really affects us.

It’s Time for Left-Leaning Funders to Fully Fund and Engage in Political Warfare

Posted on March 10, 2025March 11, 2025 by Vu

[Image description: A house or barn completely engulfed in flames at night. Image by Stephen Radford on Unsplash]

Hi everyone, this week is my birthday, when I’m officially a year older. But joke’s on the universe, since I’ve always looked ten years older than my biological age! If you’d like to help me celebrate, please donate $44 (or whatever you can afford) to nonprofits serving transgender people and advancing trans rights, such as the Trans Continental Pipe and the Marsha P. Johnson Institute.

Also, at the advice of our colleague Thaddeus Squire in his article “Four Ways the Nonprofit Sector Can Tell the Trump Administration to F**k Off,” I’m forming a religion, Vuism, to fight injustice, since religious organizations have almost zero oversight in this country and can take tax-deductible donations. Part of Vuism is the observance of Vumas on March 12, which requires all nonprofit professionals take the day off, eat hummus, and use the Oxford Comma to send one another good wishes.

***

Over the past few days, you may have noticed the uptick in conversations regarding foundations’ increasing their payout rate during this sharknado shitstorm of fascism, cruelty, and ignorance (Marked by things like people protesting and destroying posters at a neuroscience conference in Orlando because scientists were talking about “diversity of efferent firing in the cochlea” and these MAGAts’ hate-infused brains thought it was about DEI and started foaming at the mouth).

Thanks, Foundations, but 6% or Even 10% Payout is Not Enough

Posted on March 4, 2025March 4, 2025 by Vu

[Image description: Black and white photograph of six police officers in riot gear–shields and helmets–standing in a row, barricading the street and sidewalk. Image by StockSnap on Pixabay]

Hi everyone, I hope you’re doing OK during this time of Fascist Extremist Assholes Reign (FEAR). If you’re free this week, March 4 to 6, please join me at the virtual Nonprofit Marketing Summit: Evolve, which is FREE. My session will be on March 5^th at 11am Pacific Time, and is called “Nonprofits, Bans, and Burnout: Surviving in 2025 Without Losing Our Collective Minds (or Tax-Exempt Status).” Please register here, attend, and say comforting things in the chat in case I break down weeping into a stuffed unicorn.

***

Last week, the MacArthur Foundation received a lot of praise for committing to increase its payout rate for at least the next two years from the legal minimum of 5% to 6%, which will add to the foundation’s total giving by about $150M. Here’s an article on it (Content warning, the article immediately displays a picture of Agent Orange, Russia’s most valuable puppet, in case you are trying to regulate your stress level). Here’s a piece from MacArthur’s president, John Palfrey, encouraging other foundations to do the same:

“We are inviting other philanthropies to join us: set it at six. We hope others in a position to do so will consider voluntarily raising their baseline payout rate to 6 percent, from the 5 percent as mandated by law, for the coming two years, at a minimum […] Philanthropies are well positioned to respond during periods of crisis. Many stepped up during COVID-19 and put out more funds when the social sector needed it. Today is a time when severe budget shortages again call for an infusion of additional capital.”

Funders, stop bringing spreadsheets to knife fights!

Posted on February 4, 2025February 4, 2025 by Vu

[Image description: A hand holding a serrated knife, seeming ready for a fight. Image by Paul Volostnov on Unsplash]

A few weeks ago, which now feels like an eternity ago, Inside Philanthropy gave me the award for Philanthropy Critic of the Year, saying “Through his blog Nonprofit AF, he’s long advanced a critique of funders that is irreverent, hard hitting[,] and often cuttingly funny.” It’s nice to be recognized for my ramblings, even if IP didn’t even use the Oxford Comma in the recognition, which is rather hurtful.

Among the other awardees are two that stood out to me:

Highest Return on Investment: Donating to the Heritage Foundation: “We’ve long argued that public policy grantmaking offers the greatest leverage for funders. Exhibit A is Heritage’s long record of outsized influence, which is set to hit a new peak in a second Trump administration with Project 2025 or its equivalent.”

No Kidding Award: The Generosity Commission: “Debuted with much fanfare in 2021, the blue-ribbon commission set out to study the decline in ‘everyday’ donors and found that, well, yes, small-donor giving is down. There’s more in the commission’s hefty report, but was it worth all the rigamarole?”

While it irks me that the Heritage Foundation gets lauded and platformed, there is no denying how horrifyingly effective this funder has been. What we are seeing now with the destruction of democracy and the rise of fascism can be greatly attributed to the work of the Heritage Foundation and aligned right-wing funders. And it will only get worse, as we will find out when Project 2025, which we failed to stop, gets implemented in full and erodes our rights over the coming years, if not weeks.