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This crisis has laid bare what nonprofit leaders have known for years: Todays model for funding nonprofits and social enterprises is fundamentally broken. Despite a growing movement toward trust-based philanthropy , the majority of foundations continue to provide grants that are project-specific and time-limited.
If we want nonprofits to support us in the next crisis, they must have sufficient resources. And to know what nonprofits need to do their jobs effectively, we must ask them directly. Strong communities need strong nonprofits. Many nonprofits were on the frontlines of these movements for racial justice and equity.
CRH’s salvation eventually came in the form of a collaborative approach, pivoting toward a combination of emergency funding provided by a small family foundation; a nonprofit, non-extractive loan fund; a third-party investment firm; and a coalition of Latinx communitydevelopment financial institutions (CDFIs).
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