F*ck your tax breaks
The revolution will not be 501c3 incorporated
For the past several months, foundations have been threatened with loss of tax incentives for their giving, and are mobilizing to protect the industry (Council on Nonprofits, 2025).
Look, I get it—
F*ck the government and their taxes. I’m right there with you.
As a small business owner, I am currently struggling to bay back taxes on all my 1099 work that I use to SUPPLEMENT my full time job in the nonprofit sector. I don’t want to owe the government any more money.
The difference between myself and the people I am talking about are hundreds of millions and billions of dollars. I’m looking at you, foundations, DAF holders, and capital-p Philanthropy rit large.
Philanthropy has a problem with their ability to give nimbly and in-line with social justice movements. This is why, for example, Emergent Fund was started, and it is an incredible model for how to move money numbly and to the degree that movements need. “Emergent Fund is a rolling, trust-based, no strings attached, monthly rapid response and emergent organizing grant for movement and frontline communities responding to urgent and specific unanticipated crises or opportunities to build power. We explicitly fund rapid response and emergent organizing grounded in movement values and power-building led by frontline Black, Indigenous, and people of color (Emergent Fund, 2025).”
If every foundation or grantmaking institution were to give this way, then perhaps the tax breaks would be a more compelling reason to uphold the status quo of the industry (though those two principles seem diametrically opposed to each other in my opinion). But it’s not happening that way at scale.
I have a Master’s Degree in Public Administration, which means I formally learned about how imperative it is to incentivize “public goods,” such as charitable giving. I understand that institutions need these incentives, and I do disagree with the government’s recent crackdowns to nonprofits and their incentives.
But I need to point out that poor people have been helping each other for centuries without tax breaks and so can you!
💸 You Don’t Need a Tax Break to Fund Liberation
It's a harsh reality: many foundations and institutional funders routinely reject grassroots community projects simply because they're unincorporated or have recently lost their IRS 501(c)(3) status. This bureaucratic gatekeeping often leaves transformative work unfunded, even when it's led by the very communities most in need.
But here's the truth: You don’t need a tax break to fund liberation. You can literally hand people cash. You can donate your own money directly. You can support mutual aid, community gardens, bail funds, and more—without a single form, board meeting, or tax deduction.
🧾 The Tax-Exempt Trap
The IRS's 501(c)(3) status is often portrayed as the golden ticket for nonprofits. While it offers tax deductions for donors, it also enforces a rigid, top-down structure that can stifle grassroots initiatives. Many community-led projects, especially those by and for marginalized groups, operate outside this system, relying on direct support from their communities.
This system disproportionately affects Black, Indigenous, and other communities of color, who have historically been excluded from formal philanthropic structures. The emphasis on tax-exempt status often overlooks the value of informal, community-driven efforts that don't fit neatly into these frameworks.
✊ Liberation Over Bureaucracy
Foundations often claim they can't fund unincorporated groups due to legal or tax concerns. But this is a choice, not a necessity.
This reluctance reveals a deeper issue: many philanthropic institutions are more invested in maintaining their own structures and tax advantages than in genuinely supporting liberation efforts. Their priorities often align more with self-preservation than with the needs of the communities they claim to serve.
I’ve seen so many foundations refuse gifts to community projects because those projects are unincorporated or have recently lost their good standing with the IRS. This is one main reason the work doesn’t get funded. So in this instance, Fuck your tax breaks! You can literally hand people a check. You can donate your own money. You can literally hand people cash.
You don’t need tax breaks to fund good work, I promise you. Your boards and trustees are movable if they are truly working towards liberation — and therein lies is the problem: philanthropy rit large is not actually working towards liberation of anyone. Period.
💰 Direct Action is Possible
You don't need a foundation or a tax break to make a difference. Direct giving, whether through cash donations, mutual aid contributions, or supporting grassroots initiatives, can have an immediate and profound impact. This approach bypasses the bureaucratic hurdles and directly addresses the needs of communities.
Moreover, supporting these initiatives fosters a culture of solidarity and mutual support, empowering communities to drive their own liberation without waiting for institutional approval.
🔄 Reimagining Philanthropy
True liberation requires a fundamental shift in how we view philanthropy. It's not about charity or tax deductions; it's about solidarity, community control, and dismantling the systems that perpetuate inequality. Philanthropy should be a tool for liberation, not a mechanism for maintaining the status quo.
If you're committed to liberation, your giving should reflect that. Support the unincorporated, the grassroots, and the community-led. Your resources can fuel the movements that are already happening—without the need for tax breaks or institutional approval.
In the end, the question isn't whether you can afford to give without a tax break—it's whether you're willing to prioritize liberation over bureaucracy. The answer, I hope, is yes.
If you or your organization is struggling to understand how you can move money more nimbly, please reach out to me! I am happy to talk to anyone trying to make the work happen in a way that is in lock-step with communities they care about. Contact me at contact@melodie-kg.com