The Federal Administration’s efforts to decimate public infrastructure and programs are about more than just funding cuts and bureaucratic restructuring—they are about power: who holds it, who loses it, and who suffers as a result. Philanthropy has a choice: Will it rise to this moment with boldness, courage, and an unwavering commitment to racial and housing justice?
Gutting federal programs, upending the federal workforce, and backing out of promises made to the American people and our allies, have real and devastating consequences that are destabilizing our country’s safety, our economy, and people’s lives.
Nonprofit leader and author Vu Le argues philanthropy’s endowments hold little value if an authoritarian government takes power. While philanthropy cannot fill all the gaps left by government disinvestment, funders cannot retreat or play it safe out of fear. This retreat is a privilege many of our neighbors, especially those who are Black, Indigenous, people of color, LBGTQ+, disabled, immigrants, or unhoused, do not have. As funders consider their next moves, they must consider the deep, irreversible implications and risks current federal actions will have for our communities over the potential risks funders may face for putting a stake in the ground.
Holding the Line: Strengthening Housing and Community Agency
Resourcing frontline organizations, legal support, and grassroots organizers is one way to block harmful actions, protect communities, and start to lay the foundation for the world we want to see: a future where housing is guaranteed and recognized as a basic human need. Despite the Administration’s attempts to make this vision harder to achieve, the United States has the resources to solve homelessness and ensure everyone has a place to call home.
Housing cuts span a wide range of programs and services, including billions of dollars allocated for homelessness initiatives being placed on hold; plans to slash HUD staff by 50 percent; and the canceling of contracts that would throw hundreds of housing projects into limbo and threaten the sustainability of their nonprofit developers. Cuts won’t just mean budget shortfalls, they will mean people losing access to life-saving resources and people losing access to income that will in turn jeopardize their own security.
Advocacy, Organizing, and Building Power
Nothing is more transformative than the collective power built through organizing and coming together in community. To contend with the threats logged as progress, foundations must make deep and rapid investments in grassroots organizing and coalition building to mobilize people, shift the political landscape, and ensure that people can wield their power to shape their own futures and actualize their full potential.
Funders and their board members or trustees also have an unprecedented opportunity to use their power to influence decision makers and support the reimaging of systems that work for all people, especially those at the sharpest intersections of marginalization. Philanthropy should spotlight creative solutions developed by grantee partners as well as demonstrate the damage that federal funding cuts will have on the communities they serve and people’s ability to stay safely and stably housed.
Capacity Support and Sustainability
This moment demands creative solutions to ensure that essential services remain available to those who need them most. Organizations need unrestricted, long-term funding to respond to emerging threats, build capacity, and strengthen infrastructure such as digital and physical security. With the demolition of federal resources, philanthropy needs to take proactive steps to mitigate the harm. Some organizations will struggle to survive, and funders should ask their grantee partners how to support their capacity to manage these transitions.
No Retreat, No Compliance in Advance
The tendency is to retreat during times of uncertainty. We cannot afford to do so. Philanthropy must stand firm in its commitments to racial and housing justice. Now is the moment to double down on protecting and resourcing the people who are at the sharpest intersections of oppression and marginalization. Now is the time for philanthropy to take seriously and prioritize the safety of grantee partners and find ways to support them without exposing them to unnecessary risk. What we cannot do is acquiesce in advance to the Administrations’ threats and fear mongering. Philanthropy must act in solidarity with the people who are most impacted—people who are unhoused, housing insecure, immigrants, disabled, BIPOC, and LGBTQIA+ —and refuse to enable policies that will put them at even greater risk.
A Moment of Reckoning
We will never return to the way things were—and we shouldn’t want to. The old systems were built on racialized capitalism and already failed millions. The work ahead is not just about resisting and repairing harm. This is also a moment for imagination and creation. We must fight not only to stop the harm but to build toward the future that everyone deserves. Our ability to co-create a world where everyone has the opportunity to thrive and reach their full potential will be determined by how we act in this moment. Now is the time to go all in.
Upcoming Funder Training: How Funders Can Engage in and Support Advocacy
WHEN: Thursday, March 27, 1p.m ET/10am PT
RSVP here.
Philanthropy plays a critical role in advancing housing justice and systemic change—but many funders remain uncertain about how they can legally and effectively engage in advocacy. This training by Alliance for Justice will equip foundation leaders and staff with a clear understanding of how private and public foundations can support advocacy efforts, including what activities foundations can engage in directly and how to fund grantees that advocate and lobby.
This session builds on the insights from the Bolder Advocacy resource "Investing in Change: A Funder’s Guide to Supporting Advocacy" and is designed for foundation staff and trustees who want to maximize their impact in advancing equitable housing solutions.
Co-Sponsors: Funders Together to End Homelessness, Fund for Housing and Opportunity, North Carolina Network of Grantmakers & Heading Home Minnesota Funders Collaborative