Three Examples of Funders Taking Steps to Better Support Nonprofit Workers

Few philanthropic funders would currently receive an “A” on IP’s Worker-Friendly Funder Report Card. That would require a foundation to make providing living wages, paid time off and essential benefits central to its grantmaking practices.

At the same time, however, some foundations have either prioritized nonprofit workers’ needs in the past, or are doing so now, and it’s important to give credit to those funders taking steps in the right direction. Doing so is also a good way to give other funders ideas about how to take the same kinds of steps in their own grantmaking practice — and to give nonprofits ideas for actions or programs they might be able to ask their funders to consider.

With those goals in mind, here are three funder actions and initiatives that either have or are currently doing some solid good for nonprofit employees.

Funding the full scope of the job

Betsy Leondar-Wright at Staffing the Mission referred me to one funder that makes a point of knowing the salaries in the regions it funds and talks with its nonprofit partners to ensure that the nonprofits’ proposed grant budgets are at least paying the area’s market rate for the proposed work.

“Many times, applicants tell us they didn’t want to ask for too much and we ask them to request what is truly needed to carry out the project,” said the source at this funder, who asked not to be named as they hadn’t cleared participation with their employer. Granted, funding according to prevailing wages in an area may not equate to supporting actual living wages, but it’s far preferable to expecting nonprofits to pay less than others are paid for similar work.

Staying ahead of inflation and more

In 2021, the Mortenson Family Foundation in Minneapolis, which supports nonprofits working in fields including child and family poverty and environmental work, increased its grants to help nonprofits with the effects of inflation. For example, according to Executive Director Christina Hanson, a $20,000 grant would be boosted to $25,000. Mortenson also provided extra grants in 2020 to support its grantees during the COVID-19 pandemic and hosted a convening with a fundraising expert to help the grantees raise additional money, and Hanson said the foundation provides “as many unrestricted grants as possible.”

When it comes to wages, Mortenson talks with its nonprofit partners to ask about whether or not they pay living wages, and if not, explores ways to help the nonprofits with budget issues or otherwise finds ways to “bridge resources,” including connecting the nonprofits to other funders. Mortenson also asks its nonprofit partners to have conversations with their other funders about what those funders are doing to support nonprofits in light of inflation. These kinds of frank conversations are important for funders and grantees to be having. But considering the power dynamics at play, funders like Mortenson should consider reaching out directly to their funder peers if they want to have a greater impact.

Mental health stipends

This year, Galaxy Gives, one of the newer and larger criminal justice reform foundations in the field, provided an additional $5,000 to each of the awardees in its Galaxy Leader Fellowship program. While stipends have always been a part of the program, this year, fellows have used the money for therapy, necessary car repairs to decrease their stress, creating a healing space in their office, and even a metalworking class.

Galaxy Gives has also taken the time to research and create a list of trauma-informed, BIPOC mental health practitioners for fellows to consult with if they so choose. That’s a huge potential boost to help people with the frequently daunting set of tasks involved in finding mental healthcare at all, let alone a practitioner and modality that will work for them. It’s easy to see why mental health stipends would be a valuable part of a program that seeks to support directly impacted leaders who are working for criminal justice reform. It’s also easy to see how the same kind of support would make a huge difference in the lives of virtually every front-line nonprofit worker and leader.

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The three actions and programs listed above aren’t alone. Another funder mentioned by Leondar-Wright, for example, reportedly asked a grantee to send in a budget that would show the cost of providing benefits to everyone on the grantee’s staff. Other funders have made a point to come forward to tell me about an action they’ve taken or a program they’ve started, with nonprofit employees in mind. I’ll be detailing these practices and more in future posts.

The number of foundations that have reached out to me doesn’t exactly indicate a widespread trend. But the fact that they are is still heartening, and could be evidence that more funders are starting to respond amid a climate that has launched Fund the People, All Due Respect, Staffing the Mission and eventually, Living Wage for US’s planned funder program — not to mention the National Council of Nonprofits’ research showing that the nonprofit starvation cycle is having a decidedly negative impact on nonprofits’ ability to serve their missions. Whatever the tipping point is, it seems that after talking about their role in nonprofit starvation for more than 30 years, at least some funders are finally taking action.

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