Pooled Funds: A Tool For Aligned, Strategic Impact In a Fast-Paced Moment

This guest piece is from our friends at Democracy Funders Network, as contributed by their Program Director, Emily Thielmann. Their Pooled Funds Resource List features PACE’s Faith In/And Democracy pooled fund.

We already knew in January that this was going to be a big year for addressing the health and safety of democratic norms and institutions. Yet in the midst of a global pandemic, a major economic recession, and a rising wave of racial justice awareness and action, few could have imagined just how significant this year would be.

As the 2020 Presidential election approaches, funders interested in making an impact on the long-term health of American democracy in this critical moment are faced with a landscape of initiatives and organizations that only grows more complex and continues to change rapidly. How can a funder prioritize when everything seems so urgent? Which strategies are most effective? What is the best way to know where funds are needed most when money is moving so quickly and last week’s biggest need may already have been met, while a new need is lying unfunded?

For funders grappling with questions like these, pooled funds may offer a good solution. As a coordinated way for donors to give through a central entity that then regrants directly to organizations, pooled funds offer several distinct benefits to donors.

One, pooled funds help money move efficiently to top organizations in an aligned manner, increasing the impact of philanthropic funding in the field and reducing duplication. Two, pooled funds often offer an added layer of accountability through the inclusion of data tracking and evaluation practices — particularly valuable for individual donors or donors without the capacity to fully integrate robust data and evaluation practices into their grantmaking. Finally, pooled funds provide a platform through which donors can connect with experts who are able to provide nuanced, field-wide strategic insights.

Once a donor decides to give to through a pooled fund, however, they are then faced with yet another landscape to navigate: all the different pooled funds that are out there. This navigation process can be more challenging still because funds may use similar or overlapping language to describe their core focus and activities, and the nuances that distinguish these funds are not always immediately apparent from websites or overview materials.

To address that challenge, the Democracy Funders Network created a Pooled Funds Resource List to make sense of some of the major funds in the democracy field. This resource offers a glimpse of pooled funds focused on a range of leverage points for affecting change in our democracy, including civic and voter engagement, democracy reform, election protection, state-level election advocacy, strengthening journalism, and election crisis planning.

Pooled funds are not for everyone. Some donors prefer to stay more closely connected by giving directly to organizations. The important thing is to give, one way or another. The stakes for democracy are too high to remain on the sidelines. If you are a donor looking to give in a coordinated, collaborative, and high-impact way as the election approaches, we hope this resource will help you navigate the pooled fund options at your disposal.