October 16, 2008
Economy Forces Social-Justice Group to Shut Down
Economic woes have forced Changemakers, a San Francisco nonprofit group that promoted so-called social-justice philanthropy, to close its doors.
The group opened in 1998, but it leaders did not think it could survive in the current fund-raising environment, according to a letter on its Web site.
“The economic downturn, combined with our fund-raising outlook, has made our course of action clear,” says the letter, which was signed by its board.
The letter also says that the organization was never meant to become an “entrenched institution,” but meant to spark interest in local giving that focused on racial equality, gender equity, and other concerns.
“We step aside to allow the seeds we have sown to take root, grow, and blossom in new and innovative ways,” the letter says, noting that Changemakers awarded more than $2-million to local charitable funds.
Lucy Bernholz, a foundation consultant, writes that the passing of Changemakers, a group she supported, raises questions for the nonprofit world and others. They include:
“What was getting done that will no longer get done? How will our lives be affected by the loss of organizations we have supported in the past? What will do with that support? Find new issues? New organizations? Give up?” she asks on her blog, Philanthropy 2173.
Last year, another organization that promoted giving to social-justice efforts, the National Network of Grantmakers, closed. The network blamed its closure in part on a lack of resources due to the growth in groups with similar missions.
Read The Chronicle’s article on the closing of the network and its profile of the philanthropist Tracy Gary and her work to create Changemakers.
(A short-term pass or subscription is required to read The Chronicle article.)
What do you think? Will social-justice groups be able to thrive in the challenging economy?

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I am very concerned about the use of the term “so-called social justice philanthropy” in this article. Social Justice Philanthropy or the granting of philanthropic dollars to organizations that work for structural change in order to increase the opportunity of those who are the least well off politically, economically, and socially, is an important part of the work that we do as foundations. Marginalizing that work makes it even harder for organizations like Changemakers to raise funds to create long-term positive change in our communities.
Trista Harris
Executive Director
Headwaters Foundation for Justice
— Trista Harris Oct 22, 02:14 PM #