Earlier this month, the Trump administration slashed $1 billion in AmeriCorps funding, impacting thousands of organizations serving Philadelphia and communities across the country. This is only the latest move in what has been a series of cuts that are profoundly affecting the ability of nonprofits and social service organizations to address challenges including poverty, hunger, education, and more.

Many philanthropists are vacillating between two options in response: trying to backfill the gaps left by federal cuts, or waiting to see how these cuts, and attacks on peers and some nonprofit organizations, unfold before responding.

We believe neither of these approaches is quite right.

Unfortunately, donors cannot simply “step in” and fill the gaps left in the wake of the federal government’s cuts. While we applaud the intentions behind those who have been working to offset the impact of cuts, this is neither a sustainable strategy nor one that is feasible for many donors. The cuts are simply too big.

At the same time, it would be short-sighted for donors to not respond. Philanthropists have a critical role to play amidst these challenges. That role should be embraced as an opportunity, not as a moment to hesitate.

So how can donors take action in a way that delivers meaningful outcomes?

First, get strategic. In a world where demand for resources far outstrips supply, donors need to get maximum bang out of every buck. This means deeply understanding the issues and communities they want to support, in part by engaging with that community. It means facilitating collaboration and more efficient delivery of services among nonprofits with overlapping missions. And in some cases, it means supporting the capacity of nonprofit organizations to find ways to get leaner, more focused, and more innovative in how they deliver core services.

Second, get creative. While we acknowledge many donors have felt the effects of a volatile economy over the past several months, we also see savvy donors finding creative ways to get more resources into the field. For some, this may mean activating dollars that have been sitting dormant in donor-advised funds. For others, this could mean building a mission-aligned investment strategy to leverage a foundation’s principal. Still other donors can and should spend more, and in some cases, explore a “spend-down” strategy like the Gates Foundation announced early this month to maximize present-day impact. What each of these strategies has in common is leveraging creativity to push more resources into the field.

Third, get collaborative. Coordination and collaborative giving —as well as bringing peers into the arena and more widely distributing risk — is essential in the face of current challenges. We believe that at its best, philanthropy is a team sport and we have seen donors who collaborate get more done.

So, the question for donors is, who do you want to be during this crisis?

Mike’s firm is helping a number of donors employ the strategies above; these ideas also serve as the foundation for a new nonprofit founded by Vik and on whose board both Mike and Vik serve. Doing Good. Well. is taking action on each of these fronts by mobilizing donors with a “mutual fund” model of collective impact. Donors are able to match their dollars — often from donor-advised funds — with other donors, exponentially increasing impact. Doing Good. Well. then invests in hyper-local leadership (currently focused in the Kensington neighborhood of Philadelphia) to build the capacity of and support a portfolio of organizations working collaboratively on housing insecurity, early learning, food insecurity, safety and gun violence.

We would argue this is the way philanthropy should work, even in good times. In challenging times, this is the way philanthropy must work to be effective. This isn’t political. Whether you believe these cuts are governmental right-sizing or draconian, optimizing philanthropy to be strategic, creative, and collaborative will improve outcomes, regardless.

We know some donors feel genuine trepidation around threats from the administration and Congress and the potential for backlash, but there are steps donors can take to manage risk and still have impact. For many, the first step is simply asking for help. There is a growing list of other donors, resources, and like-minded advisors like us, ready to jump in.

During the pandemic, a friend liked to say, “When in crisis, everyone becomes a more extreme version of themselves.” So, the question for donors is, who do you want to be during this crisis? Now more than ever is a moment that calls for mobilizing resources, maximizing impact, and thinking and acting strategically. Donors who embrace courage and take action can do exactly that. Many are starting. More are needed.

Vik Dewan spent decades in banking before leading and transforming the Philadelphia Zoo. Mike Wang has led nationally and locally recognized nonprofit organizations and currently co-leads a philanthropic advising practice. Both serve on the board of Doing Good, Well, a new Philadelphia-based nonprofit working to transform philanthropy.

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