When the COVID-19 pandemic swept across the United States in early 2020, it exposed and deepened long-standing inequities in communities – and in the funding systems meant to support them. At Nonprofit Finance Fund (NFF), we saw firsthand that unrestricted, flexible funding could be a lifeline for nonprofits on the frontlines of crisis, helping organizations adapt to meet the needs of their communities and bolstering their resilience to financial strains.
Thanks to the generosity of philanthropic partners who believed in our mission and trusted our approach, NFF was able to distribute flexible capital to dozens of small, community-centered nonprofits during a time of uncertainty. These gifts – one from an anonymous donor inspired by our stewardship of the NYC COVID-19 Response & Impact Fund and another from the Fidelity Charitable Trustees’ Initiative for COVID-19 relief and recovery efforts – allowed us to provide general operating support at a critical moment to 31 organizations across the United States.
“It’s not transactional, it’s transformational”
Families for Freedom (FFF), a human rights organization for families facing and fighting deportation, used the funds to support 36 individuals and families with food, transportation, and utilities, and funded systems so staff could continue working remotely. The grant also helped them bring in more money from other funders by showing one funder’s trust in their work – and outcome that many other grant recipients shared. “I do appreciate the fact that there was a level of trust in selecting FFF,” said Donald Anthonyson, Director. “It’s not transactional, it’s transformational.”
Juan Gomez, Executive Director, MILPA Collective, appreciated what he called the “hands off approach” NFF took. MILPA is led by formerly incarcerated people and aligned minds. They cultivate next-generation leadership, social infrastructure, and indigenous fellowship. Their practices center cultural healing, public health, advocacy, and being a good relative.
With the grant, the nonprofit was able to directly support 30 families while making sure their own house was in order to continue their work. MILPA also used the funds to partner with The Village Project, Inc., to share resources and promote solidarity, and hired five interns to expand youth outreach and engagement.
When funders trust nonprofits to lead, nonprofits step up and do what’s best for communities. Flexible funding allowed organizations to meet urgent needs while providing the space and funds to innovate, build infrastructure, and plan for the future.
The power of flexible funding
As NFF distributed these grants, we deepened our own commitment to trust-based philanthropy. We simplified paperwork, kept communication open and honest, and prioritized relationships over reporting. We saw that when we gave nonprofits the freedom to decide how to use funds, they made smart, strategic choices that reflected deep knowledge of their communities.
The lessons from these gifts extend far beyond the pandemic. Emergencies will continue to arise, but the need for flexible, reliable funding is constant. Nonprofits cannot build and support strong, resilient communities if they are constantly scrambling to fit funder requirements or chasing restricted dollars that don’t cover the full cost of their work.
Philanthropic partners who provide general operating support give us – and the organizations we serve – the power to respond quickly, invest in long-term solutions, and build a more equitable future. These gifts are about more than funding; they are acts of trust. And that trust is transformative.