Regulating Wall Street

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Financial reform could go a long way toward addressing issues many philanthropists care about, from poverty to climate change. In the absence of strong policies curtailing the financial and political power of Wall Street and corporations, we end up not only with extreme economic inequality, but also oil companies opposing legislation on climate change, pharmaceutical companies fighting price controls on life-saving drugs, and gun manufacturers spending millions to defeat gun control laws. Yet this area has historically received scant attention or resources from philanthropy. Meanwhile, the financial sector pours a lot of money into influencing public policy. This guide offers advice about how donors can help better regulate Wall Street and curtail corporate power. It highlights leading philanthropic strategies and offers guidance for donors new to this space to get started with their giving.  

Strategies for Impact

Nonprofits are engaged in a range of efforts relating to regulating Wall Street and curtailing corporate power. Below, we discuss several areas where donors might focus their funding and spotlight several organizations in each that represent the kind of groups that donors might consider supporting.   

  • Support public policy advocacy and litigation. Every year, financial firms and corporate behemoths spend big on political campaigns and lobbying to protect their own interests. Ordinary Americans also need their voices to be heard on these issues, from the Oval Office to the courts and federal agencies. Organizations working on advocacy and policy in this area include the Center for Responsible Lending, which is dedicated to fighting predatory lending; Private Equity Stakeholder Project, which seeks to unite people harmed by private equity firms; and Americans for Financial Reform, which addresses a wide swath of financial issues. Organizations addressing these issues through litigation and other law-related strategies include the National Consumer Law Center and Public Citizen. 

  • Give to groups conducting research and advancing ideas to change economic thinking. Upstream from work to directly influence current policy and legislation is the important work of reframing debates around economics and the role of government. This is a place where momentum is especially strong, as new challenges have emerged to the neoliberal faith in free markets. Donors can support think tanks that research and develop ideas around stronger regulation and reforms, like Better Markets, which is laser-focused on strengthening oversight of the financial sector; the Roosevelt Institute, which aims to shift national policy in favor of more a proactive role for government in the economy; Open Markets Institute, which aims to break up monopolies; and American Economic Liberties Project, which also focuses on monopolies and the need for antitrust enforcement. The Economic Policy Institute does important work on labor regulations, trade policy, retirement systems and more.  

  • Support organizing to build momentum for reform and engage voters. Far too many bad policy outcomes in the complicated areas of finance and corporate power happen because politicians don’t face any public pressure to act otherwise. The groups mentioned above could be advocating for the most popular policies imaginable, but they still need mass numbers of active and engaged people to tell lawmakers what they want. Groups working to organize voters to offset the influence of corporations and Wall Street include the Center for Popular Democracy, a national hub supporting organizing efforts across the country, and Community Change, which works to increase the voice of low-income Americans in public policy deliberations. 

Insights and Advice

In considering which impact strategies to support, donors should take into account their personal interests and outlook to find the best fit. They should also keep an eye out for emerging opportunities to give with maximum impact to regulate Wall Street and curtail corporate power. Here, we offer a few insights and suggestions:

  • Don’t go it alone. Intermediaries and philanthropy-serving organizations can do a huge amount of the leg work of identifying opportunities in the field, and getting involved with one of these groups is a great way for donors to save time and give more effectively. Notable groups include the Economic Security Project, which distributes money to organizations fighting corporate power through its Anti-Monopoly Fund. For donors especially interested in giving for political organizing, Movement Voter Fund is an intermediary that distributes money to a diverse array of progressive grassroots organizations across the country. 

  • There is momentum in this area. While Congress remains deadlocked, the Biden administration has taken steps to move the ball forward on many of the issues mentioned above. The current administration includes a number of high-level appointees outspoken in their support for stronger regulation and enforcement of antitrust laws, from Wall Street to tech companies. Further, to the extent that there is hope for bipartisan cooperation on any issue, tech monopolies may be the leading contender, with many conservatives expressing concern about the overwhelming power held by tech companies.

For Donors Getting Started

Donors who are new to this space should take the time to learn about the landscape. A good place to start is by reading recent articles that IP has published about this area of philanthropy. You might also want to read our State of American Philanthropy briefs on Giving for Economic Justice Policy and Advocacy and Giving for Workers’ Rights and Workforce Development. Some of the organizations listed above, such as Americans for Financial Reform and Public Citizen, also share articles and other informative resources. 

The best way to get started giving for the regulation of Wall Street and curtailing corporate power is to make some initial gifts, get to know the work of the groups you’re supporting, and connect early with a funding intermediary that can help you learn more about this area and increase your giving in a thoughtful way. 

Have suggestions for improving this brief? Please email us at editor@insidephilanthropy.com.