Nila Kartika Wati
The global philanthropic sector currently stands at a critical juncture as it navigates an era defined by deepening social repression, rising authoritarianism, and a series of interconnected global crises. As traditional charitable institutions face increasing scrutiny over their role in maintaining systemic inequities, a growing movement within the sector is calling for a fundamental shift in how wealth and power are distributed. This movement, exemplified by the launch of the "Raise the Bar" tool, argues that philanthropy must evolve beyond bureaucratic grantmaking toward "liberatory practices" that prioritize the speed and scale required to address modern humanitarian and political emergencies.
The Financial Landscape of Modern Philanthropy
The scale of wealth held within the philanthropic sector has reached unprecedented levels, creating a stark contrast between institutional resources and the urgent needs of frontline communities. In the United States alone, philanthropic assets held by foundations grew from approximately $1 trillion in 2019 to $1.5 trillion by 2024. Despite this 50 percent increase in total assets, the legal requirements governing the distribution of these funds remain stagnant. Under current U.S. law, private foundations are only mandated to pay out 5 percent of their endowment value annually, a threshold that includes administrative costs.
Furthermore, the rise of Donor-Advised Funds (DAFs) has introduced a new layer of complexity to the sector. DAFs currently hold over $250 billion in assets. Unlike private foundations, DAFs have no legal annual payout requirement, leading critics to describe them as "black boxes" for private wealth management. This concentration of wealth occurs against a backdrop of what researchers term a "polycrisis"—a convergence of ecological collapse, economic extraction, mass displacement, and racialized criminalization that requires immediate and substantial capital intervention.
Palestine as a Critical Compass for Philanthropic Reform
The historical and contemporary treatment of Palestinian civil society serves as a primary case study for the failures and potential of the philanthropic sector. Since the 1990s, philanthropic interventions in the region have often been shaped by political and economic agendas that reinforce existing power dynamics rather than challenging them. Analysis of aid flow shows that grants to Palestinian organizations are frequently subject to political conditioning, which penalizes groups rooted in liberation frameworks while rewarding institutionalized models that may inadvertently fragment collective resistance.
The disparity in funding is further highlighted by recent geopolitical events. Since October 2023, approximately $20 billion in U.S. military aid has been directed toward Israel. Simultaneously, Jewish-identified philanthropic organizations have raised over $2 billion in private funding for Israeli causes. In contrast, progressive philanthropic institutions have faced internal and external pressure to restrict or withdraw funding from organizations aligned with Palestinian liberation. The 2025 "Funding Freedom" report indicates that many funders have imposed restrictive grant conditions, discouraging cross-movement solidarity and pressuring grantees to avoid "political" stances.
A Chronology of Philanthropic Shifts and Grassroots Resistance
The evolution of social justice philanthropy can be traced through several key phases of institutional response and grassroots adaptation:
- The Institutionalization Era (1990s–2010s): Philanthropy largely adopted a "professionalized" model, where funding was tied to specific, measurable outcomes and bureaucratic reporting. This era saw the rise of the "Nonprofit Industrial Complex," where social movements became increasingly dependent on foundation support, often at the cost of radical political goals.
- The Pandemic and Racial Reckoning (2020–2022): The COVID-19 pandemic and the global uprisings following the murder of George Floyd forced many foundations to temporarily streamline their processes, offering unrestricted "general operating support" and acknowledging the role of systemic racism in wealth accumulation.
- The Current Repression Cycle (2023–Present): As authoritarianism rises globally, many institutions have retreated from their 2020 commitments. This period is marked by "political neutrality" in communications while endowments remain invested in industries driving fossil fuel extraction, surveillance, and military expansion.
In response to this institutional retreat, grassroots communities have expanded mutual aid networks and indigenous-led defense movements. These groups operate on a "politics of care," sustaining life-affirming systems even when abandoned by formal institutions.
The "Raise the Bar" Framework and Liberatory Funding
To address the systemic bottlenecks in wealth distribution, the Funders4Palestine (F4P) collective, in partnership with the Palestinian liberatory resourcing initiative Rawa and the Funding Freedom project, has introduced the "Raise the Bar" tool. This resource is designed to help philanthropic actors move from symbolic recognition of justice to concrete, accountable practices.
The framework identifies several "entrenched logics" that preserve the status quo, including hierarchy, paternalism, and risk aversion. Liberatory funding practices, as defined by the initiative, require a seismic shift in three core areas:
- Intentionality: Aligning investment portfolios with mission statements. This involves divesting endowments from industries that contribute to war, detention, and ecological destruction.
- Humility: Shifting decision-making power to the communities most impacted by funding decisions. This challenges the traditional model where foundation boards, often disconnected from frontline realities, dictate strategy.
- Deep Accountability: Establishing transparent mechanisms where grantees and communities can hold funders responsible for the consequences of their political silence or funding withdrawals.
Analysis of Implications: The Master’s Tools vs. Systemic Change
The push for liberatory philanthropy is rooted in the theoretical framework famously articulated by author Audre Lorde: "The master’s tools will never dismantle the master’s house." Advocates argue that because the philanthropic sector was built on wealth accumulated through colonialism and racial capitalism, reform alone is insufficient.
True transformation requires rejecting the very structures that enabled mass extraction. This analysis suggests that if philanthropy remains a tool for reputation management or wealth preservation, it will continue to undermine the movements it claims to support. However, by adopting the "Palestine lens"—using it as a litmus test for how foundations handle the most controversial and repressed struggles—the sector can develop the "moral clarity" necessary to support global justice movements effectively.
The "Raise the Bar" tool specifically aims to help funders identify "harmful practices," such as the use of Palestine as a "wedge issue" to discipline the broader justice ecosystem. By raising the standards for how Palestinian organizations are funded, the initiative seeks to "raise the bar" for all social justice funding, ensuring that no movement is left vulnerable to political or financial abandonment.
Official Responses and Future Outlook
While many major foundations have maintained a cautious silence regarding these calls for reform, some individual leaders within the sector have begun to advocate for the adoption of the "Solidarity Philanthropy" model. Organizations like Grassroots International and the "In Our Name" campaign have joined F4P in calling for a redistribution of resources that matches the scale of the global "polycrisis."
The ongoing debate within the sector reflects a broader struggle for the soul of philanthropy. Critics argue that foundations are becoming "speculative real estate-driven" or "securitized" entities that mirror the systems they intend to fix. Conversely, proponents of the new framework believe that philanthropy can work toward its own irrelevance by successfully building a future where collective wellbeing is self-sustaining.
As the sector looks toward the second half of the decade, the effectiveness of these new tools will be measured by whether foundations move "from words to deeds." The central question remains whether progressive philanthropy will distribute capital at the speed required to enable a life-affirming future or if it will remain a conservative force, protecting assets while the communities it serves face escalating threats to their survival. The "Raise the Bar" initiative represents a definitive attempt to ensure that shared humanity, rather than institutional preservation, serves as the sector’s primary compass.
