Poverty and Opportunity

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Almost 38 million people, or 11.6% of the country’s population, lived in poverty in the United States in 2021, according to the U.S. Census Bureau. Wealth and income inequality in America has grown steadily for over 40 years. Food and housing insecurity are widespread, as is lack of access to affordable healthcare and livable wages. Philanthropy has long focused on efforts to alleviate the symptoms of poverty, and donors are increasingly looking to address the root causes of poverty. Giving for economic justice and antipoverty efforts encompasses a wide swath of strategies and organizations. Donors can give to directly support those in need and/or can support movements and advocacy to end poverty and advance economic justice. This guide offers advice about how to support antipoverty and economic mobility efforts. 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 poverty and economic inequality. 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.   

  • Back grassroots movements for economic justice. Grassroots movements — especially movements that center the people most impacted by the problem — have historically driven progressive change. Donors can resource grassroots organizing nationally by giving to groups such as Community Change and Center for Popular Democracy. Another way to support grassroots organizing for economic justice is by giving to labor movement nonprofits such as National Domestic Workers Alliance (NDWA), National Day Laborer Organizing Network (NDLON), and Restaurant Opportunities Centers (ROC) United. Social justice movements such as the Movement for Black Lives often include economic justice in their work. And in communities across the country, there are locally focused organizations fighting for economic and social justice such as Los Angeles Alliance for a New Economy and PUSH Buffalo.

  • Give for direct services and financial assistance. While advocacy and organizing are required to address the root causes of poverty and economic injustice, there is still a need to fund direct services and financial assistance for people who are struggling now. Funders can donate to local or national organizations that provide specific services such as food, healthcare, counseling or legal aid. Feeding America coordinates a nationwide network of food banks, food pantries and meal programs. The National Association of Free and Charitable Clinics can help donors identify local clinics across the country that provide healthcare to uninsured and underinsured people. The National Legal Aid and Defender Association supports public defenders and legal aid attorneys. And perhaps the most straightforward contribution funders can make is simply giving cash to people who need it. Organizations like GiveDirectly allow donors to send money to people in poverty. 

Insights and Advice

In 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 for efforts to end poverty and advance economic justice. Here, we offer a few insights and suggestions:

  • Don’t go it alone. Intermediaries and philanthropy-serving organizations can do a huge amount of the leg work of identifying opportunities in the field, and getting involved with one of these groups is a great way for donors to save time and give more effectively. Notable groups include Economic Opportunity Funders; Funders for a Just Economy at the Neighborhood Funders Group; the workers’ rights–focused LIFT Fund; ReWork the Bay, a funder table focused on worker empowerment in the California Bay Area; and the EITC Funders Network, which brings together funders interested in addressing economic insecurity through tax credits. 

  • Give flexible funding for the long haul. Multiyear, general operating support is a best practice in trust-based philanthropy because it gives nonprofits sustained funding they can count on to make long-term plans, as well as flexibility to use funds as needed to respond to crises as well as emergent opportunities. Long-term, unrestricted funding will enable nonprofits in this sector to do their best work to address poverty and advance economic justice.   

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 Economic Justice Policy and Advocacy. You might also take a look at related briefs on Giving for Housing and Homelessness and Giving for Community and Economic Development. In addition, peruse recent articles that IP has published about philanthropy relating to poverty and economic justice. Some of the organizations mentioned above, such as Economic Opportunity Funders, also offer reports and other opportunities to help donors understand the giving terrain. 

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 to end poverty and advance economic justice 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.