Flexible Funding Boosts Resilience in Communities

Ares Charitable Foundation argues that modern philanthropy must prioritize flexible funding models to help communities and nonprofits navigate policy volatility. Funders increasingly recognize the importance of allowing grantees agency in determining how best to serve their populations, especially as shifting policies impact vulnerable entrepreneurs. A Brookings Institution report indicates a 3% decrease in Latino-owned businesses could lead to over 100,000 job losses, highlighting the need for stable support structures.

The foundation demonstrates this approach through its partnership with Jobs for the Future, adapting a green jobs program to prioritize reskilling existing workers when hiring slowed, shifting from an 80/20 split of incoming to incumbent workers, to a 20/80 split. This flexibility allows nonprofits to build capacity and address evolving needs.

Armstrong contends that philanthropy should view volatility as inherent and focus on maximizing the impact of funding for the benefit of communities and individuals. Prioritizing adaptable funding is critical for long-term success and resilience.