The Revolution Will Not Be 501c3 incorporated
Rethinking Social Change Beyond Nonprofits
We’ve been conditioned to believe that the only path to making a difference is through the creation of a nonprofit. Many of us, in our pursuit of social change, have been taught that the 501(c)(3)—that elusive tax-exempt label—holds the keys to legitimacy, funding, and permanence. But what if there’s another way? What if, in this moment of shifting tides—politically, socially, and culturally—we could rethink our approach to change, and question whether we truly need the nonprofit industrial complex to shape the future we seek?
As someone involved in community organizing, mutual aid, and advocacy, I’ve been reflecting on what it means to be part of movements that seek to create a new world. Movements rooted in mutual aid and community care remind us that we do not need to rely on traditional systems—such as government or corporations—to support our collective well-being. We have the tools to build something different, something that doesn’t need to be funded or controlled by external forces. In this current political climate, we in fact have to build something different.
The title “The Revolution Will Not Be 501c3 incorporated” is a reference to “The Revolution Will Not Be Funded,” (a collection of essays that discuss the nonprofit industrial complex and the broader idea of de-institutionalizing movements) and, originally, “The Revolution Will Not Be Televised,” all of which are critiques on our collective attempts at social change. In this instance, I use this motif as a call to look beyond the traditional funding and operational structures that often limit the impact of grassroots movements. It’s a challenge to the assumption that in order to do meaningful work, we need the legitimacy that comes with formal nonprofit status.
Let me be clear: I am not offering legal or tax advice here. The intent of this article is to explore ideas and provoke critical thinking about how we operate within the framework of social change and what that might look like outside of the conventional nonprofit sector.
Nonprofits as a function of government
The nonprofit sector in the U.S. is massive, with the 501(c)(3) designation being the most common. These “public charities” are the most commonly understood nonprofit structure. However, this is not the only type of nonprofit organization. There are other classifications, like 501(c)(4) (lobbying organizations), 501(c)(6) (membership organizations), and 501(c)(7) (social clubs), each with different roles in society. But what’s common across all of these structures is the reliance on government oversight, monitoring, and the requirement for transparency.
The 501(c)(3) designation has historically been seen as the golden ticket for individuals or groups looking to effect change through social services and movement building. In fact, much of the government’s social support has been outsourced to nonprofits. This is not out of a desire for efficiency, but often because it’s cheaper for the government to fund nonprofit organizations than to handle social services in-house.
This market condition leads nonprofits to “race to the bottom” in contract negotiations in delivering service contracts, for example, that keep nonprofit organizers’ pay so low and their services so meager in relation to the vision of the organization.
In this way, the system also allows the wealthy to opt in to supporting social causes via donations, giving them tax deductions in exchange, instead of paying higher taxes to fund these services directly.
(Imagine being able to opt in to, say, I dunno, military spending???)
So, when governments decide to shift national priorities, programs are expected to shift (or disband) to meet those priorities or lose their funding entirely.
The Problems with the Nonprofit Model in enacting radical social change
Often serves the interests of the state and the wealthy
Too much government oversight and not enough gov’t funding
Enforces replication of harmful market conditions, such as wage poverty
Keeps people poor
Moreover, government funding comes with its own set of restrictions
The structure itself is inaccessible to the people who need it most
These challenges, coupled with the over-reliance on government structures, make it difficult for many nonprofits to be as effective as they could be in driving change.
If we want to build sustainable, grassroots movements, we need to rethink how we approach social services and social change. AND HOW WE FUND IT.
The key point here is that social movements can be more robust when we diversify the mechanisms by which we operate. This isn’t about rejecting nonprofits altogether, but rather expanding our understanding of what’s possible.
In an era where fighting authoritarianism is increasingly urgent, we must explore all available options and develop new ways of organizing.