Philanthropy's Role in Pandemic Response

The nonprofit sector is the third largest employer in the United States and accounts for $9.5 billion in direct economic activity, and yet, due to the COVID-19 pandemic, tens of thousands of nonprofits are in danger of closing their doors permanently. Nearly a third have cut staff or suspended operations. This particularly affects smaller, grassroots organizations, such as those that provide vital services to marginalized populations.

As with many other crises, the LGBTQ community is being affected disproportionately, and needs intentional support. Fortunately, there are a number of funders, including Stonewall and our fund partners, who are stepping up to help. Funders for LGBTQ Issues lists over two dozen rapid response and emergency funds which have been bolstered by donations from fund partners and members of the community; Stonewall alone has seen more than $100,000 in donations to fund our relief efforts as well as another $100,000 in grants from foundations to support vulnerable LGBTQ individuals.

Here at Stonewall, our community of fund partners has loudly and proudly stepped up to meet urgent needs. Our donor-advised funds have seen a 650% increase in grants in the last two months compared to the same period last year. That’s true not only of our own fund partners, but is being seen across the country as individuals with donor-advised funds are coming up with creative and generous solutions to help the organizations they love and trust. Fidelity Charitable Trusts has reported an 18% increase in giving from its DAFs when compared to March – May giving in 2019. While not LGBTQ specific, that points toward a flood of generosity from fund advisors and partners nationwide. One California couple, David and Jennifer Risher, have even created the #HalfMyDAF Challenge to encourage more giving.

The Rishers have offered a $1,000,000 challenge to support other fund advisors’ favorite nonprofits. The caveat? The contributions will be made only when fund advisors pledge to spend down half of their own DAFs by September 30th. This is in response to the emerging need of nonprofits that are cancelling events and seeing a drop in major donations due to stock market losses, and is timely as California is currently looking at legislation around DAF transparency. You can read more about it here, or check out HalfMyDAF.com for more information about how to get a $10,000 matching gift for your favorite nonprofit. 

Whether you want to participate in the #HalfMyDAF challenge, or build up your own philanthropy, now is a great time to use your donor-advised fund: it is the proverbial rainy day for many organizations. Add to your DAF here.