After the Votes Are Counted: Strategic Insights for Democracy Funders
📷 credit: Ted Eytan / Flickr
Despite record-setting fundraising and massive GOTV efforts during the 2024 election, progressive losses across the board present advocates with daunting political challenges over the next four years. The election resulted in losses of the Presidency and Senate and failed to flip the House, leaving a federal landscape increasingly hostile to progressive values.
The incoming administration has already signaled its intent to pursue the white Christian nationalist agenda of Project 2025, which seeks to consolidate power for the President. Between the extremist cabinet nominations of the past few weeks and the rapid emergence of legislation like H.R. 9495 which would give the US Treasury expanded powers to strip nonprofits of their tax exempt status, rightwing forces are redoubling efforts to undermine democratic institutions and clamp down on voices of dissent.
In the coming months, it is likely that we’ll see further consolidation of power behind the President, as some red states may seek to align with the federal government to restrict voting rights, threaten electoral systems, and criminalize protest. Furthermore, we can expect the threat of mass deportations to be used as a rationale to impose force on states that resist unjust federal policies. The fight for democracy will get harder over the coming years.
Yet, despite this electoral loss, there is still hope. The truth is, this election was not a mandate. President Trump won with the smallest popular vote margin since 2000. While the Harris campaign failed to overcome the headwinds that toppled almost every incumbent administration around the globe, we saw a number of local and state victories and a high level of split ballots which show the divided nature of the electorate today. The challenges we face will also provide us with the opportunity to grow the democracy field in ways that will benefit our movement for years to come, if we have the strength and thoughtfulness to do so.
We have the power to push back against despair. Our success in this endeavor relies on our ability to learn critical lessons from the past, and prepare for the future. Below are some key themes Ktisis Capital has identified that will drive our actions over the coming years:
Multi-year investments in democracy are more critical than ever. Donor anxiety about a potential economic downturn will impact fundraising for democracy organizations at a time when needs are higher than ever. Progressive donors should strongly consider making multi-year commitments to organizations working at the frontlines in the fight for democracy. We must remember that any short term economic concerns are dwarfed by real long-term threats and show up strongly to support the groups fighting at this critical time. Doing so allows development staff to focus their fundraising efforts elsewhere and helps organizations create multi-year plans around the commitments they receive.
States are fundamental to the fight for democracy and will require investment to highlight, prevent and fight back against federal abuses of power. Local governments will play a critical role in resisting the unjust policies of this administration, just as they did in 2016. In addition, cities and states are where policy innovation thrives, and we know that local leaders will have to get creative to protect and strengthen communities and democratic institutions from further attack.
Investment in philanthropic alignment efforts will be critical to maintaining a united front. Philanthropic intermediaries like Movement Voter Project and pooled funds like Trusted Elections Fund provide the broader funding community with strategic direction and rapid response capacity. Their close engagement with partners across the country make them well-suited to respond effectively to threats as they emerge, which relieves donors of the burden of having to track all the threats themselves.
Foundations should consider utilizing more mission- and program-related investments (MRIs and PRIs) to activate a greater percentage of their endowment. This can include actions like providing a grantee with a low- or no-interest loan to purchase a building, funding a social impact startup, or investing in the green energy ecosystem. At a time when both democracy and the climate are crumbling, it is critical that funders draw upon the full weight of their investments to fund the future our communities need.
Multi-entity organizations will be better positioned to navigate the hostility of the incoming administration. The rise of H.R. 9495 is the opening volley in what will likely be an ongoing attack on the progressive organizing ecosystem. Multi-entitity organizations (those with 501(c)(3), 501(c)(4), PAC and LLC affiliates) will have more flexibility to adjust their strategies and retain critical staff and other resources when legal challenges arise. New Left Accelerator offers support for practitioners and funders regarding how to structure and navigate the complexities of building a multi-entity organization.
Litigation funds will be critical to help smaller and mid-size funders to lean in and support progressive organizing in an increasingly hostile landscape. Rightwing forces have already weaponized litigation in an effort to chill the movement of progressive dollars. Litigation funds like Democracy 2025 can be used to mitigate risk and provide critical support for smaller funders who are unable to afford a costly legal battle.
This election has made apparent the need to counter disinformation. Disinformation is increasingly utilized to distort people’s perceptions of the truth and manipulate voter behavior. Groups like Reset Tech guard against digital threats and seek to hold tech companies accountable to democratic values. Onyx Impact is another organization fighting disinformation designed to harm Black communities. In addition, efforts to support non-corporate journalists who reliably report on local affairs can mitigate the impact of disinformation at the local level.
At Ktisis, we are considering our own responsibilities as we navigate this moment of vastly increased need. Not only must we make critical investments in our democracy ecosystem, we must strengthen broader work for economic justice and labor protections, a just transition to a new sustainable economy and more to respond to the real frustrations of voters. We are working to better support each other during stressful times while also delivering on our promises to the field. As circumstances evolve, we will continue to track both threats and opportunities to help funders navigate the complexities of our shifting philanthropic ecosystem. Moving forward, our team is available to talk through options and offer advice about how to best support the pro-democracy movement.