As federal funding cuts imposed by the current administration have trickled down into revoked grants for nonprofits, less contract opportunities from the city and state, and hesitation from private funders, many local nonprofits across Chicago have had to re-evaluate how they can generate and sustain funding with fewer reliable resources. On May 29th, the Leaders of Color Collective and AMPT Chicago came together in community for a panel discussion on diversifying funding and sustaining revenue during a deeply uncertain time.
Four nonprofit leaders, joined by co-moderators Jamyle Cannon and Ana Agarrat, shared their experiences on the panel:
Shawn Sorsby, Executive Director of A Step Ahead Chess
Liz Jansen, Executive Director of Women Unite!
Carlos Robles-Shanahan, Founder and Director of Duo Development
Amanda Williams, Organizer at Chicago United Solidarity Project
Throughout the discussion, panelists coalesced around the central idea that nonprofit leaders should rethink their mindset toward money. As Robles-Shanahan shared, “Some of us don’t know to differentiate between capitalism and commerce, and the fact that not all commerce is capitalism. Not all commerce is exploitative…or meant to hold somebody else down.”
Jansen, Sorsby, and Agarrat reinforced this sentiment by emphasizing their fee-for-service work. Whether fee-for-service was by design or necessity, each leader shared the need for organizations to recognize the value of their programming. By seeing the inherent value of their organizations’ work and the true cost to providing a quality product, organizations should stop settling for less and generate revenue that reflects thriving, full-fledged programming.
“When people ask, ‘How much does it cost?’ we answer, ‘How little can we do it for?’” Cannon said. “Those are two different questions, and you shouldn’t answer one with the other.”
Amanda Williams, a community organizer with Chicago United Solidarity Project (CUSP), echoed the sentiment of knowing value and worth, but also shared the importance of leaning on their community. Williams shared that CUSP does “a lot for our community partners, and because of that, they do a lot for us. So, we borrow all we can, barter. I think a lot of it is just returning to the way that we have survived.” While funding is key to nonprofit work, communities and people of color who have not traditionally had access to wealth have often found ways to flourish and uplift each other beyond financial wealth.
Williams introduced the idea of co-struggling and asking ourselves “questions like, what are we good at? And be honest about what we’re good at, what we’re not good at, and pull in folks who fill in those gaps because I think it takes every part of a ship to have it steer and go.”
Through the process of co-struggling, Williams and Jansen developed a Summer Series fundraiser that brings together several organizations each year to host community-based events that share proceeds evenly across organizations. Each partner-organization brings different strengths and capacity to the table in order to maximize the success of their fundraising.
All panelists emphasized the importance of relationship-building and market research, and maintaining these efforts regularly to be prepared for crises. Sorsby said, “If I was to go to the bank, and I was like, ‘Yo, I need a loan, I’m about to foreclose on my house, my wife left me, I have no money.’ They’re going to be like, ‘No, we’re not going to give you any money.’ … But if I already was in a good place and I’m building a relationship, they’re going to be offering money at a lower rate anyway. So, you want to build the relationships before you actually need them.”
As the panel concluded, participants walked away with new perspectives centered on knowing their value and being compensated accordingly, co-struggling, and thinking beyond traditional methods of fundraising. Nonprofits are a tax classification, not a business structure—leaders should think innovatively about attracting funding to support their work and long-term vision because it will give them the freedom to lead with intention.
Watch the full panel discussion here for in-depth discussion, practical tips for diversifying revenue, and messages of hope from one nonprofit leader of color to another.
If you would like to get involved with the Leaders of Color Collective and stay updated on future events, please email Jessica Jones-Lewis, jessica(at)loganfdn(dot)org.