Giving and Approaches to Systemic Transformation

During the month of August, we honor Black Philanthropy Month. As we reflect on Black Philanthropy Month, we honor a long and storied tradition of Black giving from mutual aid societies and church-led networks to modern foundation grantmaking led by Black staff, trustees and high net worth donors. As Black community approaches to giving evolve broadly, some donors are beginning to deepen their analysis of how to create impact through both tax deductible and non-tax-deductible pathways. In this month’s newsletter we highlight two main pathways:

1. 501(c)(3) Charitable Contributions: tax-deductible, often sustaining essential frontline services and community programs (subject to lobbying caps)

2. 501(c)(4) Social Welfare and Advocacy Contributions:  non-tax-deductible investments that build flexible, year-round civic and political infrastructure

For most Black Funders Network (BFN) members, 501(c)(3) grantmaking has been the approach: sustaining nonprofits, local service providers, and regional community institutions. A growing number of individuals and families are choosing to support year-round civic and political infrastructure through 501(c)(4) social welfare organizations, donor tables, and civic engagement coalitions alongside traditional grantmaking. 

To maximize their impact, many donors are strategically blending 501(c)(3) and 501 (c)(4) funding to strengthen democracy and amplify community voices from every angle. Giving circles and donor tables serve as bridges for donors who are interested in exploring these hybrid models. By aggregating both 501(c)(3) capital and 501(c)(4) capital, Black givers are able to pool resources, co-invest in long-term regional strategies, and back, Black-led advocacy that extends beyond single grant cycles. 

Because 501(c)(4) contributions are non-tax-deductible, they offer flexible capital that can be used for public political advocacy, ballot measure campaigns, and voter mobilization. These organizations are able to fill structural gaps that standard 501(c)(3) grants cannot legally address. Aligning capital with systemic change requires mapping ecosystems that move resources to frontline communities.

As an ongoing tool for strategic giving, partnership, and field-building, linked below are two resources (one for individual and family donors, and another for grantmakers) that provide a regional snapshot of a few intermediary and advocacy organizations that are making a systemic impact; including their core geographies, grantmaking support, and websites for more information.