Housing and Homelessness

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Homelessness and lack of affordable housing are reaching unprecedented levels of crisis in America. Housing costs keep rising while the number of people living on the streets and seeking help at homeless shelters soars. Addressing these issues will require an intense investment of both public and private resources, making this a daunting topic for even the wealthiest donors and foundations. That said, there are still myriad ways for donors at all levels to make a difference. This brief offers advice about how donors can contribute to initiatives ranging from direct services to advocacy for systemic change. It highlights leading philanthropic strategies and offers guidance for donors new to this space to get started with their giving.  

Strategies for Impact

Nonprofits are engaged in a range of efforts to address homelessness and the lack of affordable housing. All this work is important and could benefit from greater support. Below, we discuss areas where donors might focus their funding and spotlight organizations in each that represent the kind of nonprofits that donors might consider supporting.

  • Give for housing and other direct services. Donors can make contributions to homeless shelters, temporary housing organizations, legal aid groups serving people who are housing-insecure, and other direct service nonprofits. While the vast majority of funding for homeless shelters and temporary housing comes from federal grants, these funds come with rigid requirements for how they’re spent. Philanthropists can fill gaps with more flexible funding that can cover expenses government grants don’t address. Donors can also give to legal-services nonprofits that help people facing eviction or foreclosure to stay in their homes. The National Housing Law Project is a leading organization working in this area, while many cities have local groups dedicated to protecting tenants and homeowners. Nonprofits providing healthcare, counseling, food and other direct services to unhoused people can also use more donor support.

  • Support the creation of more housing. In many cities, the affordable housing supply is simply far too low, and the cost to build affordable housing is too high for private companies to take on such projects with any hope of profiting. Many of these cities have also zoned a huge percentage of their residential lands for single family units, which limits housing supply and further narrows options for developers. There are dozens of advocacy groups at the state, local and federal levels working to address barriers to increasing the housing supply, while also pushing for policies like rent control. Groups working on these issues nationally include National Alliance to End Homelessness, Smart Growth and Habitat for Humanity, which has entered the policy advocacy space in addition to its work building homes. Meanwhile, there are a growing number of local organizations pushing to build more affordable housing.

  • Back advocacy for greater public and private investments in permanent low-cost housing. While increasing housing supply is an important goal, lowering housing costs will also require public and nonprofit action. Organizations like Mercy Housing and EAH Housing buy, build, develop, finance and/or manage affordable housing. Some municipalities and states have begun actively reinvesting in public or social housing projects that would otherwise go unpursued by for-profit real estate developers. At the federal level, Congress can expand or create programs to develop affordable housing. A top national group focused on public policy is the National Low Income Housing Coalition, as well as Habitat for Humanity.

  • Give to grassroots movements for housing justice. Social-justice-minded funders can support grassroots movements for housing justice, which are fighting for housing as a human right and as part of broad, intersectional movements for economic and social justice. These groups are more likely to center the leadership and solutions of the people most impacted by the problem, including unhoused and formerly unhoused people. Nonprofits in this space include the national Right to the City Alliance and the Alliance for Housing Justice, as well as more locally focused organizations such as Causa Justa / Just Cause in the Bay Area and the Los Angeles Tenants Union. 

Insights and Advice 

When considering which impact strategies to support, donors should take into account their personal interests and outlook to find the best fit. They should also keep an eye out for emerging opportunities to give with maximum impact to address the housing and homelessness crises. Here, we offer a few insights and suggestions:

  • Get informed about the different approaches. New movements and efforts to address complex challenges can be both exciting and tricky to navigate. For instance, the growing YIMBY (“Yes In My Backyard”) movement — named for its opposition to the notorious “Not In My Backyard” stance of people who protest the building of more housing or shelters in their neighborhoods — is in some ways at odds with grassroots housing justice movements, as explored by IP’s Philip Rojc. Donors will want to learn about the competing ideas for solving the housing crisis and give to groups that align with their values.

  • Remember that housing is a political issue. Many housing organizations operate in the 501(c)(4) space, which allows them more flexibility when it comes to politics, but which also means donors’ contributions are not tax deductible. Consider your preferences in terms of 501(c)(3) and 501(c)(4) giving, or both, and make sure you know the organizational type of any group you fund. 

For Donors Getting Started

Donors who are new to this space should take the time to learn about the landscape. A good place to start is by reading IP’s State of American Philanthropy brief on Giving for Housing and Homelessness. In addition, peruse recent articles that IP has published about what’s happening in this area of philanthropy. Some of the organizations mentioned above, such as Funders Together to End Homelessness and Alliance for Housing Justice, also offer articles and other resources to help funders understand the giving landscape for housing and homelessness.  Funders can also find helpful information from organizations such as the National Housing Conference or books such as “Homelessness is a Housing Problem,” by Gregg Colburn and Clayton Page Aldern. 

To find local charities working in this area that are well respected, Charity Navigator is a reputable place to search for worthy organizations around the country. 

But the best way to get started giving for housing and homelessness is to make some initial gifts, get to know the work of the groups you’re supporting, and connect early with a funding intermediary that can help you learn more about this giving area and increase your giving in a thoughtful way. 

Have suggestions for improving this brief? Please email us at editor@insidephilanthropy.com.