Note: My colleagues Christal M. Cherry, Renee Rubin Ross, and I have been exploring tweaks, hacks, and alternatives to the traditional 501(c)(3) nonprofit structure. This post is the first in an informal series. – Andy

When I say “nonprofit,” what comes to mind?

Perhaps you picture the entire sector: a $2 trillion dollar industry across the US that includes 1.5 million organizations doing a lot of amazing work.

Maybe your framework is global: a vast network of civil society NGOs striving to change the world – literally. 

Most likely, the first thing that jumps to mind is your own nonprofit. It’s probably an incorporated, federally-recognized organization with a board, staff, programs, budget, fundraising apparatus, successes, challenges, and so on.

All these responses are accurate, yet they’re incomplete.

What’s below the surface?

It might surprise you (or not) to discover a different layer of community impact: all-volunteer, unincorporated, ad hoc groups. These informal groups or networks come together for a variety of purposes. 

There are soccer clubs and book groups and parenting cooperatives. Immigrants create informal mutual aid networks. Neighbors gather to care for a local park, green space, or community garden. Worshippers meet in private homes. Professionals meet to share notes, referrals, and a meal.

In some cases, these groups persist for years. Others solve a problem or address a pressing need, then dissolve. 

They don’t formalize for a variety of reasons. First, incorporating and applying for 501(c)(3) status is a cumbersome, costly process. In some cases, this structure doesn’t align with their values or community leadership models. 

Nevertheless, these groups and their networks are an essential part of our nonprofit ecosystem. Thanks to their presence, our communities are richer and more resilient.

What about the activists?

For this purpose of this post, let’s focus on social change at the grassroots level.

Take a look at the New England Grassroots Environmental Fund, known as the Grassroots Fund. 

The fund was created in 1996 to support organizers and activists who are working community by community. The Grassroots Fund is primarily supported by larger foundations that aren’t equipped to distribute small grants (as little as $500) or serve unincorporated grantees, but understand the value of community organizing and engagement at the very-grassroots level.

Tiny but mighty

According to the Grassroots Fund website, “60-65% of our applicant groups do not have formal tax-exempt status, nor have they gone through the intensive work to secure a fiscal sponsor… These innovative ad hoc groups often find it nearly impossible to secure financial support outside of the Grassroots Fund’s grant programs.”

In 2016, the fund worked with grantees and community partners to create Guiding Values that “challenge the organization to commit to equity as a core value … and processes that allow for the participation of a broad range of lived experiences based on race/ethnicity, gender, socioeconomic status, age, etc.”

Since their founding, they’ve distributed more than $6 million in grants, supporting 300-plus grantees. Sixty-three percent (63%) of applicants are informal, ad hoc groups with an average budget size of $17,000. They’re tiny – but mighty. 

A sampling of grantees and projects

Pleasant Point Resilience Citizen Committee works to foster climate resilience and make energy efficiency technology more affordable to members of the Passamaquoddy Tribe at Pleasant Point, following community-directed goals.

El Jardin de la Amistad creates a welcoming and inclusive space where neighbors from various cultural backgrounds are able to learn, teach, and grow their own food.

Riders Action Council serves as an advocacy voice in transportation justice, with an aim toward expanding access, coverage, and service conditions.

Moose Mountain Seed Savers works to build local food sovereignty, expand genetic diversity, and deepen community relationships. They are initiating a seed bank to share locally-adapted crop varieties.

Building Legacy and Community (BLAC) builds and unifies Black culture in Waterbury, Connecticut through celebration, education, advocacy, and leadership.

These are all ad hoc groups. Some may eventually incorporate; others will remain as they are, because that’s the best scale for their intended impact.

A healthy ecosystem contains all the pieces

This statement is true in the biological sense, but it’s also true about social movements. 

Yes, we need brand-name social change institutions with muscle and money. Yes, we need regional and statewide groups with staff, credibility, and connections. 

However, for social movements to succeed, we also need hyper-local, volunteer-driven work at the roots-iest level of the grassroots. 

There is so much exploratory, innovative, essential work happening below the radar of the 501(c)(3) nonprofit industrial complex. Let’s name it, acknowledge it, and celebrate it.

Data sources: 

Nonprofit Quarterly’s Illustrated Nonprofit Economy, 3^rd Edition

National Center Charitable Statistics

With thanks to Bart Westdijk at the Grassroots Fund.