Rising to Defend Democracy: A Funder Action Guide
📷 credit: Mídia NINJA
After nearly 250 years, America’s experiment with democracy is under threat and finds itself facing imminent collapse. Many have watched in horror as the current administration dismantles democratic institutions before our eyes. The criminalization of dissent, undermining of judicial independence, attacks on journalism, targeting of trans and immigrant communities, and manufactured economic crises all pose existential threats to the future of our democracy. And now, the administration is federalizing troops to exert control over American cities and arresting and even threatening to deport political rivals. This is not a future concern – it is an immediate crisis demanding bold, decisive action from progressive donors and activists.
Historians have identified that when an aspiring autocrat takes office, democracy advocates have approximately 18 months to fight back, after which an anti-democratic regime may be able to consolidate power such that democracy may be lost for a generation or more. The window for transformative action is NOW.
Some in philanthropy are responding, but more is needed. What can be done? Below are 4 strategies foundations can adopt immediately to protect and strengthen democracy in the face of existential threat.
Four Urgent Strategies to Defend Democracy
1. Increase Your Payout
Philanthropy’s response to this moment must be commensurate with the challenges we face today. Too many funders are still prioritizing the growth of their assets over immediate funding. If ever there were a moment for a foundation to move more than the minimum 5% payout, this is it.
The “Set it at Six” campaign encourages foundations to increase payouts to 6% or more. That should be a bare minimum response at this moment. Other funders like the Freedom Together Foundation which we advise are doubling their payout to 10%, while still others are taking even bolder action by temporarily increasing to 15% or spending down entirely. Research shows that based on historical investment trends, a foundation can pay out as much as 8% on a long-term basis without threatening its perpetuity.
Increasing a foundation’s payout requires leadership to interrogate key assumptions that undergird their organizational mission and vision. Without dedicated examination of core values and practices, foundations risk allowing “perpetuity bias” to dominate decision-making in the face of grave threats to the communities they serve. This examination may include questions such as:
How has the world changed since our initial charter and bylaws were established?
What is at risk if we don’t raise our payout?
What is at risk if our communities are not adequately resourced in the near-term?
Is our mission best served by prioritizing organizational permanence over present-day impact?
What do our grantees expect of us during this period of crisis?
By asking these questions and exploring answers with staff, board and community partners, foundation leaders may be better equipped to be more decisive and effective in the pursuit of the democracy our nation has always needed.
2. Invest in Rapid Response Needs
Throughout history, the most effective action one can take – by far – to defend democracy from autocratic regimes is organized, sustained, mass mobilization and non-compliance. The right to protest is fundamental to our nation’s origin story and enshrined in our constitution specifically because it is so crucial to preventing the rise of authoritarianism. And yet, this administration is actively criminalizing protest and targeting political opponents in its quest to consolidate power.
Protest infrastructure requires immediate investment to be effective when called upon. Legal defense funds need to be capitalized now, before arrests escalate. Protest organizers need training in de-escalation, know-your-rights education, and digital security to protect activists from surveillance and retaliation. Safety and security resources – from medical support to communication networks – must be established in advance of mass action. History shows us that democratic resistance movements succeed when they have robust, pre-existing support systems that can rapidly scale in moments of crisis.
With this in mind, we encourage you to consider supporting the following organizations working to build a stronger and more effective ecosystem for nonviolent resistance efforts (for a longer list of groups to invest in, reach out to schedule a call with one of our donor advisors):
The Moxie Fund: A pooled fund that supports leading edge efforts to protect our democracy from attack via defense of civil society, election protection, and pursuing accountability for assaults on the rule of law.
Democracy Forward: One of the leading primary legal organizations advancing democracy and social progress through litigation, policy and public education, and regulatory engagement.
Janisha R. Gabriel Movement Protection Fund: A pooled fund hosted by Solidaire that moves rapid response resources to protect frontline organizers facing immediate security threats.
3. Invest in State Power-Building Efforts
While federal democratic institutions face unprecedented assault, many state and local governments remain critical bulwarks against authoritarian overreach. Building sustained organizing capacity at the state level creates multiple points of resistance and alternative power structures that can protect vulnerable communities when federal protections fail. This means moving beyond episodic electoral investments to fund year-round organizing infrastructure that builds lasting political power.
Consistent investment in state-based organizing yields both electoral victories and policy wins that reinforce democratic values. These groups form the backbone for both local and national mass mobilization efforts, and they engage in voter registration, civic education, and issue advocacy that builds the political and organizing infrastructure necessary for long-term democratic resilience. State-level organizing also creates the foundation for defending voting rights, protecting reproductive freedom, and maintaining sanctuary policies for immigrant communities.
To this end, we urge you to consider investing in state power-building organizations like the ones below (for a longer list of groups to invest in, reach out to schedule a call with one of our donor advisors):
Movement Voter Project: A national intermediary that organizes and moves money in support of multi-entity state-level power-building efforts across the country.
Indivisible: A progressive grassroots movement organization with chapters nationwide, focused on combating the right-wing takeover of American government and building an inclusive democracy.
People’s Action: A national network of power-building organizations focused on building the power of low-income and working-class people to achieve systemic change.
Or your local progressive State Donor Alliance: Most states now have a local organization dedicated to organizing donors to support progressive political and organizing infrastructure. If you’re not sure who that might be in your state, feel free to reach out, and we can help make contact.
4. Embrace the Multi-Entity Ecosystem
The most effective democratic defense requires coordinated action across multiple entity types – from direct charitable work to aggressive lobbying to electoral advocacy, yet most foundations operate under unnecessary, self-imposed constraints that limit their strategic impact. Many 501(c)(3) funders remain unaware of just how expansive their legal options actually are. Private foundations (and DAFs) are legally allowed to support grantees that engage in lobbying and advocacy, including 501(c)(4) organizations. Doing so is strategic because it can use 501(c)(3) funds to defray costs that would otherwise draw from a grantee’s lobbying and advocacy budget.
501(c)(3) funders can support lobbying and 501(c)(4) capacity through several mechanisms:
General operating support grants that allow organizations flexibility to use funds as needed, including for advocacy efforts
Project grants, which can be used to fund specific non-lobbying costs included within a broader lobbying campaign
Expenditure responsibility grants that allow 501(c)(3) funds to go to organizations that are not public charities
Each pathway brings unique opportunities and challenges, and are important tools that allow foundations to maximize their impact without running afoul of the law.
Foundations that unnecessarily limit themselves to funding only non-lobbying work by 501(c)(3) organizations are essentially fighting authoritarian movements with one hand tied behind their backs. The challenges we face today stem from decades of coordinated, multi-entity investment by opponents of democracy. To chart a genuine path toward a democratic future, we must take similarly bold action and invest deeply across the entire progressive ecosystem.
For additional support as you explore these options, consider reaching out to consult with one of our philanthropic advisors.
The Time for Action is Now
Our ability to meet this moment will depend on how urgently we – both individually and collectively – take action to reverse our country’s slide toward autocracy. The choice before us is stark: we can continue with philanthropy as usual while democracy crumbles around us, or we can rise to meet this moment with the courage and resources it demands.
The four strategies presented here work in concert to create multiple layers of democratic defense. Increased payouts provide the immediate resources needed for rapid response. Investment in protest infrastructure and legal defense creates the capacity for mass resistance. State-level organizing builds alternative power structures that can chart an aspirational path forward. And finally, multi-entity giving maximizes political impact through every available legal channel.
We are not powerless in the face of rising authoritarianism.
Philanthropy, when deployed strategically and at scale, can energize and bolster the thousands of leaders and organizations defending democratic values and supporting vulnerable communities. But we must act now, act boldly, and act together. The future of American democracy hangs in the balance.
To explore any of these recommendations further, please reach out to schedule time with one of our advisors. Thanks to generous underwriting from a client, Ktisis Capital is able to offer pro-bono advising for organizations and individuals interested in deepening their impact in the democracy space. We encourage those working on democracy-related initiatives to reach out for a free consultation to discuss how we can support your mission and amplify your impact.