What's Happening?
A coalition of 10 philanthropy organizations has introduced the 'Level Up' pledge, urging funders to increase their grant-making budgets by 20% or to pay out at least 8% of their assets for two consecutive years. This initiative aims to support nonprofits
that have faced funding challenges since the Trump administration. The pledge, announced at the Unity Summit of progressive philanthropy groups, is designed to channel additional funds to organizations representing historically marginalized groups, including Black, Asian, Indigenous people, LGBTQ communities, and immigrants. The pledge has been signed by 33 national grant makers, including the Freedom Together and MacArthur foundations, and is expected to unlock at least $200 million annually.
Why It's Important?
The 'Level Up' pledge represents a significant shift in philanthropic funding strategies, potentially providing a substantial financial boost to nonprofits that have been struggling with reduced federal support. By focusing on organizations that serve marginalized communities, the pledge aims to address systemic inequities in philanthropic funding. This initiative could lead to increased financial stability for these nonprofits, enabling them to expand their services and impact. Additionally, the pledge's accountability measures, requiring signatories to submit IRS tax filings, aim to ensure transparency and commitment to the funding goals.
What's Next?
As the pledge gains traction, more foundations may join the initiative, potentially increasing the total funding available to nonprofits. The coalition will monitor compliance and share best practices among signatories to enhance the effectiveness of the funding. The success of the 'Level Up' pledge could inspire similar initiatives in the philanthropic sector, encouraging more foundations to adopt higher payout rates and focus on equity-driven funding strategies.
