FROM OUR MOVEMENTS:
Reality, Response, and Recommendations
3
Expanding the Resource Landscape
Social justice organizations, especially those led by and for Black, Indigenous, and all communities of color, have long struggled to mobilize sufficient resources to address the systemic injustices they have and continue to face. According to Derailed, the Fall 2025 report from Philanthropic Initiative for Racial Equity, foundation and corporate giving grew by nearly 50% between 2019 and 2023, but the share devoted to communities of color dropped to 6.8%. This is lower than levels from 2012-2014. Additionally, funding for racial justice did not exceed 1.4% of all institutional giving.
In the current political climate, however, philanthropy is pulling back further on funding racial justice due the administrations’ attacks on diversity, equity, and inclusion, and racial justice work more broadly. Public funding streams–including those intended to assist refugees and to address the climate crisis–have been reneged or paused indefinitely. Under these conditions, many of our grantees are interested in exploring novel approaches and models for resourcing their work.
Among survey respondents:
62% have had philanthropic and/or public funding reduced, withdrawn, or eliminated since the beginning of the Trump administration in 2025.
62%
Across 30 organizations that were willing to share, public and private funding losses totaled $69.8 million.
-$69.8M
26%
While 61% of organizations feel a high level of confidence to operate for 3-6 months, only 26% have a high level of confidence to operate beyond a year.
Solidarity economy was the most common term used to define long-term resilience and financial self-determination. In the context of this survey, the usage of “solidarity economy” demonstrated enthusiasm about identifying alternative revenue streams outside of philanthropy, including more collaborative and interconnected strategies.
The current increase in funding volatility underscores a pre-existing need for greater resource planning and revenue diversification.
Current sources of funding identified below:
*Collaborative funding model can refer to pooled funds, intermediaries, or other projects where foundations, donors, and/or community members strategically align resources. Comments from survey respondents indicated that for them, collaborative funding model also refers to collective fundraising efforts among multiple organizations.
“Our organization has recently seen a considerable decrease in funding because our mission is focused on serving immigrant women, and the recent attempts and attacks on dismantling DEI have made some funders (especially corporations) wary of supporting our mission.”
— Director of Development, Restorative Economies Fund grantee partner
“We need funders willing to take risks, lead with trust, and redefine returns to include social, cultural, and environmental outcomes.”
— CEO, Restorative Economies Fund grantee partner
“Renewal conversations have taken longer due to private funders undergoing leadership and strategy pivots and philanthropic contraction.”
— Consultant, Restorative Economies Fund grantee partner
Kataly’s Response
Cohort Sponsorship
Kataly partners with Securing the Roots, a cohort-style fellowship program that aims to expand the fundraising capacity for community-based organizations, especially smaller grassroots organizations. To date, we have sponsored two cohorts, each serving 12 leaders from our grantee organizations.
Payment Schedule Adjustments
Our program staff met with grantees who experienced funding losses to ask if they needed payments on existing commitments consolidated or moved up.
Direct Technical Assistance
Kataly’s Restorative Economies Fund partners with grantees and borrowers, providing thought partnership and technical assistance on building and diversifying revenue streams and readying themselves to access new forms of capital. This has included strategizing on how best to engage and partner with other funders and lenders, advising on business model and capital stack development, making introductions and referrals, offering guidance on risk mitigation, and working with other lenders to support loan restructuring, underwriting, etc.
Funder Organizing
As a spend-out foundation by design that seeks to shift norms and practices in the field of philanthropy, Kataly strategically partners with peers to flow resources to mutually-aligned projects and organizations. We also regularly engage in cross-learning and information sharing with peer funders.
Calls to Action
Invest in practitioners and training infrastructure
To flow more resources into our movements, invest in the practitioners and training infrastructure that support groups in adopting value-aligned resource mobilization practices.
Examples include: CompassPoint, Wealth Reclamation Academy of Practitioners, Securing the Roots, Movement Commons, Donor Organizing Hub, and Melanate.
Resource experimentation and exploration
Survey respondents were eager to identify revenue sources apart from philanthropy, and to explore collaborative fundraising with other movement groups. To support these goals, funders should resource experimentation and exploration of these efforts with unrestricted grants and/or donations.
Lift up the organizations and projects you support
Lift up the organizations and projects you support in communications, speaking engagements, and conversations across the field of philanthropy.
Share about the organizations and projects you support
Taking appropriate privacy and security precautions (e.g., password protected materials), share a list of organizations and projects you support with other funders who hold mutual interests and priorities.
Facilitate introductions between aligned grantees and funders as opportunities arise.
Consider increasing support for existing grantees or taking on new grantees, particularly those who are being targeted
If feasible within your program budget, consider increasing support for existing grantees or taking on new grantees, particularly those who are being targeted. When possible, offer flexibility in your grantmaking—such as moving up the timing of or consolidating multi-year payments, removing restrictions, etc.