What's Happening?
Nonprofits are increasingly turning to equitable intermediaries, also known as fiscal sponsors, to navigate the complexities of legal compliance, financial management, and organizational development. These
intermediaries provide essential support that allows grassroots organizations to focus on their core missions, such as community building and advocacy. Unlike traditional intermediaries that may only handle administrative tasks, equitable intermediaries invest in capacity building, leadership development, and coalition building. They also absorb financial and legal risks, leveling the playing field for community-led organizations. Examples include RVC in Seattle and 212 Catalysts in Austin, which offer governance models that include input from sponsored projects, ensuring that these organizations have a voice in decision-making processes.
Why It's Important?
The role of equitable intermediaries is crucial in the current nonprofit landscape, where organizations face increased scrutiny and financial challenges. By providing a buffer against these pressures, intermediaries enable nonprofits to maintain their focus on social justice and community empowerment. This support is particularly vital for organizations working in areas like racial justice, climate justice, and economic equity, which often face heightened risks. Equitable intermediaries not only facilitate access to funding but also promote more inclusive and collaborative governance structures. This approach helps to dismantle traditional power hierarchies and fosters a more equitable distribution of resources and decision-making power within the nonprofit sector.
What's Next?
The movement towards equitable intermediaries is gaining momentum, with organizations like RVC and Fractured Atlas leading the charge. These groups, along with foundations such as The Rockefeller Foundation and St. David’s Foundation, aim to increase awareness and support for equitable practices in the nonprofit sector. The focus will be on attracting more funders to support this model and fostering stronger relationships between grassroots organizations and philanthropic entities. As more nonprofits adopt this approach, the sector could see a significant shift towards more sustainable and equitable practices, ultimately enhancing the impact of social justice initiatives.
Beyond the Headlines
Equitable intermediaries represent a transformative shift in the nonprofit sector, challenging traditional power dynamics and promoting a more collaborative approach to social change. By prioritizing equity and inclusion, these intermediaries help to create a more resilient and adaptive nonprofit ecosystem. This model not only supports individual organizations but also strengthens the broader movement for social justice by fostering networks of collaboration and mutual support. As the sector continues to evolve, equitable intermediaries could play a pivotal role in shaping a more just and equitable society.
