Funding Exchange Inc

Overview

The Funding Exchange Inc (EIN: 13-3002025) was a U.S. nonprofit organization founded in 1979 by young activists who had inherited wealth. It operated as a left-of-center grantmaking membership organization that focused on supporting community activist-led initiatives. At its core, the Funding Exchange aimed to distribute inherited fortunes to grassroots organizations working towards social justice.

Founding and History

The organization's roots trace back to the influence of radical student protests and activism during the 1960s, which inspired heirs like George Pillsbury, a great-grandson of the Pillsbury food company's founder. Pillsbury became involved with the Black Panther Party and other activist movements while at Yale. He partnered with Obie Benz to establish the Funding Exchange, adopting a model where funds were provided to community activist organizations with minimal oversight, reflecting a commitment to redistributing wealth.

Operations

The Funding Exchange functioned as a national network of social justice foundations. It connected donors with local community organizations and initially remained relatively non-intrusive in how funds were used. Over time, the organization began managing donor-advised funds, which allowed it to make national grants but sparked controversy among some members who felt this departed from its original focus.

Grantmaking

In its operations, the Funding Exchange distributed grants through its national office and local member foundations. In fiscal year 2010, it provided over $4 million in grants, with a substantial portion going to various left-of-center groups addressing issues like environmental concerns, economic justice, racial equality, and gender rights. Recipients included the Southern Poverty Law Center, the National Resources Defense Council, and the Gay and Lesbian Alliance Against Defamation.

Member Funds

The Funding Exchange had a network of regional member funds, including the Appalachian Community Fund, Bread and Roses Community Fund, and the Chinook Fund, each focusing on diverse social justice causes. These member funds played a crucial role in providing leadership for the organization's board of directors and guiding its daily operations.

Financials and Closure

In its final year of operation (fiscal year 2017), the Funding Exchange reported $5,856,192 in revenue, mostly from investment income. The organization spent $8,847,897, with $8,495,108 distributed as grants. Due to financial and operational challenges, including concerns about competition between its national operations and local member foundations, the Funding Exchange ceased operations in 2018. At the time of its closure, its member funds continued to operate independently around the country.

Legacy

Despite its closure, the Funding Exchange's legacy persists through its regional member funds, which continue to support grassroots activism and social justice initiatives across the United States.