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January 17, 2000

Funding Social Change Brings Charity Beyond Band-Aids

The Funding Exchange puts social, political, and economic justice into the vocabulary of philanthropy.

SocialFunds.com -- Last year, Americans donated $l50 billion to charity, yet many of these funds barely scratch the surface of social inequities. The Funding Exchange seeks to reach beyond the symptoms, to change the underlying causes of lack of opportunity, discrimination, economic exploitation, or other forms of systemic social dysfunction in the U.S.

Please support
our sponsorsThe Funding Exchange is a network of 15 community foundations across the U.S., public foundations supported almost entirely by individuals, that fund grassroots organizing for social, political, and economic justice. This network gives grants totaling approximately $12 million each year to more than 2,200 organizations, including about $3 million from the national office in New York City, part of a vibrant movement toward more progressive philanthropy.

"We give funding priority to community-based organizations that address the underlying, or root, causes of poverty and discrimination," said Ellen Gurzinsky, Executive Director of the Funding Exchange. "Our politics and practices expand democracy in philanthropy by increasing institutional accountability and representation of people historically denied power and resources."

Philanthropy is a vehicle for social change at the Funding Exchange, where the motto is "change, not charity." According to their vision, wealth disparity in the U.S., the history of exploiting human and natural resources, and the undue influence of wealth on our political system, perpetuate and strengthen a destructive dynamic within our country. They believe these conditions must be fundamentally changed in order to have true democracy and economic justice.

Member funds seek approaches to social problems that actively engage the people affected by the problem, involving them in the process of identifying and pursuing the solution, generally called "community organizing." Local activists recommend projects that originate in, and empower, communities suffering from injustice, including women, people of color, lesbians and gay men, and the poor, those often outside the social circles of traditional philanthropy

The members of Funding Exchange stretch from New England to Hawai'i, and from Oregon to Georgia. For instance, the Appalachian Community Fund provides grants to groups promoting progressive community change, such as affordable housing, civil rights, and sustainable agriculture, in central Appalachia. The People's Fund is a public foundation established to make grants to grassroots community organizing groups in Hawai'i and the Pacific.

"The community foundations who join the Funding Exchange network are part of a growing movement to expand progressive philanthropy," said Gurzinsky. "Our network shares technical assistance information and best practices, political education programs on cutting-edge issues, skill development in every arena, and solidarity in the support of social justice and human dignity."

In addition to coordinating activities to strengthen and grow the network of funds, which it hopes one day will cover all of the U.S., the national office of Funding Exchange administers a $3 million grantmaking program. They also coordinate project site visits for donors and briefings on political topics of concern to familiarize them with the issues, including two recent international donor trips: one to South Africa and another to the Middle East.

The principles of philanthropy for social change exemplified by Funding Exchange are spelled out in "Robin Hood Was Right," a book published by the organization and authored by two of its visionaries, Chuck Collins and Pam Rogers. With a newly revised edition due out in March, "Robin Hood" is an indispensable guide for the socially conscious giver, with many suggestions for greater generosity toward a more equitable world.

"Given the increased privatization of human services and the far-reaching effects of the global economy, community foundations will have to play a greater role in meeting human needs in the future," said Gurzinsky. "The Funding Exchange can bring together individuals and resources with democratic and collective approaches to problem-solving which are inclusive, fair, and change the circumstances that make philanthropy necessary."

www.fex.org

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