Solidarity Not Charity

Table of Contents

5 73 1 Executive Summary 4 Barriers & Recommendations

How to Get Started: Action Checklist 11 Internal Work & Governance 75 Embrace Systems-Change and Conduct a Power Analysis 2 Introduction 27 New Tools & Investment and Endowment Shifts 80 Reflection 28 Commit to Long-Term Work and Support Multi-Year Solidarity Not Charity 33 Grants and Loans for Solidarity Economy Institutions and Key Terms 34 Networks (Unincorporated Entities, Co-ops, LLCs) Aims of the Report 37 Methodology 38 Take a Systems-Change Approach 84 What Is the Solidarity Economy? 41 Support Collaboration, Leadership Development, and Study Groups 48 3 The Case for Culture & Solidarity Economy

1. The economy of the cultural sector is broken. 49 The cultural sector reinforces systemic racism. 92 2. The cultural sector is actively seeking 51 5 Appendices alternatives to business-as-usual. Appendix A: Transformation 93 3. Racial justice requires economic justice. 54 Appendix B: Just Transition Spectrum 95 “Going back to normal” will not result in equity. Appendix C: The Solidarity Economy Ecosystem 99 4. The economic system we want for cultural 56 Appendix D: Co-ops and Community Land Trusts Defined 101 equity is not only possible—it already exists. Appendix E: Impact on Average Hypothetical Artist 107 5. Artists and culture-bearers are central to the 58 Appendix F: The Legal Future of Solidarity Economy Grantmaking 113 Solidarity Economy. Appendix G: How Funders Can “Due Diligence” Solidarity 116 6. Grantmakers are poised to strengthen and grow 62 Economy Groups the Solidarity Economy. Acknowledgements

We are two mothers writing, listening, and learning, in a We acknowledge the original stewards of the land. pandemic. We tuck in our sons, hold their small hands through the virus and tear gas, and continue the intergenerational We acknowledge our ancestors and your ancestors. work. We are Nati Linares and Caroline Woolard—a cultural organizer and an artist—and we believe that every cultural We acknowledge and thank all those who have struggled worker should be able to feed their children and pay their rent. for worker’s rights, and racial, economic, and environmen- We believe that culture is the key to reimagining the collective tal rights and emancipation. vision of what’s possible. As you read this report, sense the heartbeats that flow through it. This is one effort among many. We stand on the shoulders of those who use solidarity This is an invitation to join a long process of transformation, and cooperative economics in the struggle for liberation. together. These are some of the folks who lead the way for us: Ella Baker, James Baldwin, Grace Lee Boggs, Barbara Dane, W. E. B. Du Bois, the Combahee River Collective, Fannie Lou Hamer, Lorraine Hansberry, Zora Neale Hurston, Paul Robeson, Shirley Sherrod, Nina Simone, Comandante Ra- mona, Elandria “E” C. Williams, Dr. Jessica Gordon-Nem- bhard, and many others.

We acknowledge your time and care. Grantmakers in the Arts is the only national HOW TO CITE THIS REPORT: association of both public and private arts Disclosure: This report has been compiled and culture funders in the United States, in- Linares, Nati and Caroline Woolard. “Solidarity for informational purposes only and should cluding independent and family foundations, Not Charity: A Rapid Report.” Grantmakers in not be construed as a solicitation to sup- public agencies, community foundations, cor- the Arts (March 2021). port or invest in any entity in the research porate philanthropies, nonprofit regrantors, report. Caroline Woolard is a current Center and national service organizations—funders ONLINE: ART.COOP for Cultural Innovation AmbitioUS Fellow, Nati of all shapes and sizes across the United Linares is employed by the New Economy States and into Canada. Prepared for: Grantmakers in the Arts Coalition, and interviewee and peer reviewer Co-Authors: Nati Linares and Caroline Francisco Perez is Nati Linares’ spouse. FOR MORE INFORMATION AND RESOURCES Woolard VISIT WWW.GIARTS.ORG Content Editor: Helen Hofling This publication is covered by a Creative Research Assistants: Liz Alspach, Jonathan Commons Attribution-NonCommercial 4.0 Grantmakers in the Arts Lee, Ruby Mayer, and Amalia Petreman International License. To obtain permission 522 Courtlandt Avenue, 1st Floor Peer Review: Caron Atlas, David Bollier, for additional uses not covered in this license, Bronx, NY 10451-5008 Esther Choi, Eli Feghali, Alexis Frasz, Emily please contact Nati Linares and Caroline (929) 452-3740 Kawano, Dana Kawaoka-Chen, Angie Kim, Woolard or Grantmakers in the Arts. Francisco Pérez, and Maliha Safri Design: Surplus+ (Shea Fitzpatrick and Lucy Siyao Liu) Illustration: Surplus+ (Shea Fitzpatrick)

This report is made possible by the William and Flora Hewlett Foundation, the Kenneth Rainin Foundation, and the Barr Foundation. art.coop | Solidarity Not Charity: A Rapid Report | 4 1

5 Solidarity Not Charity: A Rapid Report | 5 Executive Summary

This report is about the ways that arts and culture grantmakers can engage in systems-change work that addresses root causes rather than symptoms of cultural inequity. The cultural sector is actively seeking alternatives to business-as-usual to create economic and racial justice in the sector and beyond. Grantmakers can play a role in the transformation of the sector by following the lead of BIPOC creatives who are innovating models for self-determination and community wealth. This work is part of an emergent movement in the United States that is known globally as the Solidarity Economy.

5 Solidarity Not Charity: A Rapid Report | 6 Executive Summary

The economic system culture-bearers and ganizational forms.2 The Solidarity Economy tive (EBPREC) centers their work in the Black (4) artists and culture-bearers are leading artists want is not only possible—it already principles include cooperation, participatory Arts Community, making space affordable this work.10 exists, and can be strengthened and culti- democracy, intersectional equity, sustain- for generations to come. This is one of many vated with intention. This system includes ability, and pluralism.3 Dynamic collaborations efforts to ensure that land and infrastruc- The oldest Native co-op in the country, Qualla worker co-ops, community land trusts, con- between grantmakers, government agencies, ture are held by communities who have been Arts and Crafts, is led by culture-bearers. cessional loans, and mutual aid networks. and federations of cooperatives have pro- most harmed by our current systems. The first democratically managed invest- What do these things have in common? They duced thriving Solidarity Economy ecosys- ment fund in the country, the Boston Ujima all center community ownership and demo- tems around the world4 with tailored tools of Arts and culture grantmakers are poised Project, places BIPOC arts and cultural or- cratic governance for political, cultural, and support, training programs, financial vehicles, to strengthen and grow the Solidarity ganizing at the heart of its work. The oldest economic power.1 This emergent movement and policy platforms.5 Economy because: non-extractive venture capital firm in the goes by many names—economic democ- United States, The Working World, was started racy, regenerative economics, community There is great evidence that the Solidarity (1) philanthropy excels at building and sup- by artists. Artists in Belgium founded Smart. wealth, just transition, self determination, Economy provides resilience amid crisis and porting infrastructure and institutions,6 coop, the co-op that gives 35,000 free- degrowth, the commons, local community has lasting impact, when supported as a ho- lancers the benefits of full-time employees economic development—but internation- listic ecosystem. For example, when grant- (2) the main barrier for many of these Soli- (including unemployment insurance and ally, it is known as the Social and Solidarity makers support community-controlled, darity Economy entities is deliberate incuba- pensions). This model—Smart.coop—is now Economy, or the Solidarity Economy. permanently affordable infrastructure and tion7 and start-up capital,8 being piloted in the United States with the US space they create long-term efficiencies Federation of Worker Cooperatives’ Guilded. 1 The Solidarity Economy is a term used in- in their giving practices as grantees who (3) funders are seeking to learn about ways ternationally to describe sustainable and benefit are no longer spending large portions to support cooperative business structures,9 2 equitable community-control of work, food, of their organizational overhead on rent. The and housing, and culture using a variety of or- East Bay Permanent Real Estate Coopera- 3

5 Executive Summary | Solidarity Not Charity: A Rapid Report | 7 Executive Summary

Grantmakers can shift their grantmaking charity, and perceived expertise. Key ques- people who have been most harmed by our online platforms look like if those who did the to follow the principles of the Solidarity tions include: Who makes the decisions? Who current systems have community owner- work made the decisions? Economy and the practices of community benefits? What else will this impact? ship? How can we not just put out the fires control and community governance that their of the world, but build solutions that can 4) Advocate for Policies that Support Soli- grantees are innovating. Concretely, grant- 2) Commit to Long-Term Work with Multi- replace the destructive systems, to create darity Economy Infrastructure. makers can: year Grants, Loans, and Equity Invest- community wealth? ments for Solidarity Economy Institutions Systems-change requires policy change that 1) Embrace Systems-Change and Conduct and Networks. 3) Support Collaboration, Leadership De- will impact generations of artists and cul- a Power Analysis. velopment, and Study Groups. ture-bearers. Policies that create enabling To work in true partnership, grantmakers environments for Solidarity Economy infra- In order to embrace a systems-change must understand and respect the power of To create economies of justice and solidarity, structure and institutes include the Cultural mindset to support Solidarity Economies, community-owned infrastructure as well as a cultural shift—unlearning hierarchy and New Deal, increases in minimum payout rates grantmakers must get clear about the sys- the legal and fiscal challenges that informal, building the capacity to collectively govern— at foundations, Cultural Community Bene- tems that they work in and want to change. emergent, solidarity, and cooperative insti- must occur for grantmakers, intermediaries, fits Agreements, procurement for Solidarity This begins by learning about, acknowl- tutions face. Grantmakers must commit to and grantees. Shared governance requires Economy entities, and signing on to the edging, and repairing histories of harm en- long-term funding that is not project based skill sets of embodiment, listening, facili- policy platforms of existing SE groups that acted by arts and culture institutions, as well to achieve systems-change and support tation, collaboration, conflict transforma- are advocating for cooperatives, land trusts, as the root causes of cultural inequity. From partnerships with hyperlocal intermediaries tion, and ongoing, emergent education and time banks, and all SE entities. 1 here, grantmakers can identify and shift how who have expertise and longstanding rela- training. Histories of cooperation and econo- people in the sector show up in spaces— tionships with the people doing the work. Key mies rooted in cultural traditions must be re- 2 shifting resources as well as attitudes, lan- questions include: How can we ensure that taught and relearned. Key questions include: guage, and beliefs related to benevolence, communities of artists, culture-bearers, and What would our schools, workplaces, and 3

5 Executive Summary | Solidarity Not Charity: A Rapid Report | 8 Executive Summary

Grantmakers can support Solidarity Economy can become early investors and funders of countability to the communities that have To continue the research contained in this initiatives directly and also resource part- community-chosen technical assistance been most harmed by our current systems of Rapid Report, grantmakers can support fur- ners with hyperlocal expertise to include providers for community-owned entities. For neoliberal governance, extraction, and nar- ther research, including (1) peer-learning for arts and culture in their work. Funders can example, The General Service Foundation ratives of racial difference. Grantmakers can grantmakers who commit to practice soli- work with culturally-grounded intermediaries supports generative somatics, which builds shift their position from experts and curators darity in grantmaking by following the lead and partners to facilitate resource-distribu- collective capacities for embodied and trau- to supporters and co-learners who are fol- of those most impacted, (2) support for Sol- tion without becoming gatekeepers or pow- ma-informed leadership.12 The Chorus Foun- lowing the lead of Black, Indigenous, People idarity Economy community-study that is er-brokers. The Solidago Foundation believes dation funds the US Federation of Worker of Color, disabled, queer, trans, and working already underway from Boston13 to St. Louis, that “the most effective philanthropy works Cooperatives, the national grassroots mem- class creative people who are building eco- Louisville to Oakland, and that is coordi- in close partnership with groups that center bership organization for worker cooperatives nomic democracy in their communities now. nated regionally in the South14 and in In- people most directly impacted by structural that provides coaching, training, and tech- dian Country,15 and (3) support financial and inequities” and supports the Boston Ujima nical assistance for cooperatives. Several peer-governance innovations that connect Project as both a partner and a grantee.11 The members of Grantmakers in the Arts have hyperlocal groups such as those modeled by Surdna Foundation invests in Alternate Roots come together to support the Center for Cul- SeedCommons, NDN Collective, and the First and NDN Collective as both partners and tural Innovation’s AmbitioUS program as an People’s Fund. beneficiaries. The NDN Fund in turn serves as intermediary that is able to open up funding an intermediary, providing millions of dollars beyond-501c3s and provide grants, loans, in flexible and patient capital directly to Na- loan guarantees, investments, and recover- 1 tive Nations, businesses, and organizations. able grants to Solidarity Economy initiatives See the Action Checklist on page 13 for more. that intersect with arts and culture. 2 Grantmakers can offer both grant and loan The Solidarity Economy is not a buzzword 3 capital to Solidarity Economy entities, and and must be cultivated with long-term ac-

5 Executive Summary | Solidarity Not Charity: A Rapid Report | 9 Executive Summary

Endnotes

1 “What is Restorative Economics?,” Nwamaka Agbo and Barriers to Their Creation,” Sharing Ownership, Profits, Consulting, accessed February 7, 2021, https://www. and Decision-Making in the 21st Century, 14, (December 9, nwamakaagbo.com/restorative-economics. 2013), available at http://community-wealth.org/sites/clone. 2 “The Solidarity Economy,” New Economy Coalition, accessed community-wealth.org/files/downloads/article-olsen.pdf. January 12, 2021, https://neweconomy.net/solidarity- 9 Samuel Barco Serrano et al, Financial Mechanisms for economy/. Innovative Social and Solidarity Economy Ecosystems, 3 Emily Kawano and Julie Matthaei, “System Change: A Basic (ILO, 2019), https://www.ilo.org/wcmsp5/groups/public/- Primer to the Solidarity Economy,” Nonprofit Quarterly, July 8, --ed_emp/---emp_ent/---coop/documents/publication/ 2020, https://nonprofitquarterly.org/system-change-a-basic- wcms_728367.pdf. primer-to-the-solidarity-economy. 10Dayna Sherman, Building Community Wealth (ArtPlace 4 In Brazil, Colombia, Italy, Luxembourg, Quebec, France, America, 2020), https://www.artplaceamerica.org/view/ South Korea, Ecuador, Spain, Cameroon, Cape Verde, Japan, pdf?f=public://pictures/artplacefieldscancommunitywealth. Indonesia, Japan, Malaysia, and Costa Rica, pdf. 5 Peter Utting, Public Policies for Social and Solidarity 11 “About Us,” The Solidago Foundation, accessed February 14, Economy; Assessing Progress in Seven Countries (Geneva: 2021, https://solidago.org/about/. ILO, 2017), https://www.ilo.org/wcmsp5/groups/public/- 12 “About us,” generative somatics, accessed February 14, --ed_emp/---emp_ent/---coop/documents/publication/ 2021. https://generativesomatics.org/about-us/ . wcms_582778.pdf. 13 “Executive Summary,” The Solidarity Economy Initiative 6 Arleta Little, in discussion with the authors. (SEI) report 2017, accessed January 24, 2021, https://www. 7 Hazel Corcoran and David Wilson, The Worker Co-operative solidaritymass.com/executive-summary. Movements in Italy, Mondragon and France: Context, 14 “Solidarity Economy in the South,” Highlander Research Success Factors and Lessons (Canadian Worker Co- and Education Center, accessed February 7, 2021, https:// operative Federation, May 31, 2010), https://community- highlandercenter.org/our-impact/solidarity-economy-in-the- wealth.org/sites/clone.community-wealth.org/files/ south/. downloads/paper-corcoran-wilson.pdf; and Jessica Gordon- 15 “Investing in Indigenous Arts Ecology, First People’s Nembhard, “Collective Courage in the New Normal,” Kheprw Fund, accessed February 10, 2021, https://static1. Institute, May 31, 2020, video, https://www.youtube.com/ squarespace.com/static/57be24e9d1758e95b6146331/t/ watch?v=HvMfYOPeUpM. 5ac3a214352f533ad897d396/1522770485238/FPF_ 8 Erik K. Olsen, “The Relative Survival of Worker Cooperatives Investing+in+the+Indigenous+Arts+Ecology.pdf. 1

5 Executive Summary | Solidarity Not Charity: A Rapid Report | 10 1

5 Solidarity Not Charity: A Rapid Report | 11 How to Get Started

The following tables present some of the practices and policies that arts and culture grantmakers have adopted to support Solidarity Economies. NOTE: This list is a working document, developed in dialogue with our interviewees, and it reflects a small snapshot of the range of practices underway as of March 2021. These grantmaking practices are the result of each group’s ongoing learning and shared commitment to long-term organizational transformation in the service of racial and economic justice in the sector and beyond. Practices will look different for each organization based on their culture, context, process, and desires. Add yourself to the list here: https://art.coop/home/#action.

GRANTMAKERS’ ROLE PROBLEM STATEMENT ACTIONS RESULTS

Grantmakers play a role in the transforma- As the cultural sector actively seeks alter- Internal Work & Governance Shifts Shifts in grantmakers’ mindset, practices, tion of the sector by following the lead of BI- natives to business-as-usual to create eco- programs, investment/endowment, and pol- POC creatives who are innovating models for nomic and racial justice in the sector and Investment & Endowment Shifts icy advocacy to support interconnected, lo- self-determination and community wealth. beyond, the main barriers for many Solidarity cally-rooted models of community ownership This work is part of an emergent movement Economy cultural entities include (1) a lack Take a Systems-Change Approach and democratic governance to flourish in the in the United States that is known globally as of understanding by grantmakers of sys- arts and culture sector and beyond. This re- the Solidarity Economy. tems-change and existing power imbalances, Policy Advocacy pairs inequity in the sector and allows those (2) ways to support cooperative governance who have been most harmed by our current in the sector, (3) the best tools of support for systems to achieve cultural, economic, and Solidarity Economy business structures, de- political power. liberate incubation, and start-up capital, and 1 (4) ways to change whole systems by transforming investments and endowments and 2 advocating for systems-change policies to create a fiscal and legal environment that en- 3 ables Solidarity Economy cultures to thrive.

5 Actions | Solidarity Not Charity: A Rapid Report | 12 Internal Work

Governance Shifts

New Tools/ Types of Support

Investment/ Endowment Shifts

Take a Systems-Change Approach Policy Advocacy

ACTIONS 13 Hewlett Foundation, Barr Foundation, Headwa- ters Foundation, Swift Foundation, Yerba Buena Bridgespan, Center for the Arts, Sol Borealis Philanthropy, Helicon Collective, Threewalls Barr Foundation, Echoing Green, Conduct a power Threewalls analysis. Get data about inequities in the allocation of funding in your region Justice Funders, Restorative along racial and cultural lines. Economics, The Center for , Measure your organization’s prior Economic Democracy, Chorus Foundation, Watershed Center, Not Just Money investment in BIPOC staff and Resource Generation, Resonance Framework Creativity Connects, Decolonial Futures, Design Pocket Change, Stanford grantees: culture-bearers and cul- Books: Studio forIt Takes Social Roots Innovation, The Revolution will not be U Implicit Bias Research/ Daryn Dodson turally-grounded organizations. Set Funded: Beyond the Non- Profit Industrial Complex, internal andpractices external for benchmarks repair. and The Choir, Winners Take All, Decolonizing Wealth, INTERNAL WORK Capital by Thomas Piketty, The Possessive Investment DataGuide in Whiteness

Weavers Project, Caribbean Cultural The Center for Center African Diaspora Economic Democracy, Institute, Justice Funders, Headwaters Foundation Resource Generation Do diversity, equity, and inclusion Giving Project training that is led by artists and culture-bearers. Join a peer network and/ or giving circle to support ongoing transformation. Ford Foundation

Alice Sheppard Actions | Solidarity Not Charity: A Rapid Report | 14 Collective Courage SeedCommons, The Center for Economic - Democracy, New Take time during the workdayEconomy to Coalition, Jes educate your group (public sectorsica Gordon Nembhard, Ed Whitfield, Nwamaka workers, investment and programAgbo, esteban Kelly, staff, and board members) about the David Bollier

Solidarity Economy and the co-ops, credit unions, land trusts, and other

entities in your region. Sustainable Highlander Center, EconomiesCenter Law Sol Collective, New Economy Coalition

Center for Cultural INTERNAL WORK Innovation, Barr Foundation Learn about distributed leadership

Hewlett’s and worker self-managed nonprofits. Distributed Leadership report

SELC Legal Guide

Weavers Project

Engage in somatic and embodied leadership training that addresses social position, rank, trauma, and race.

Books: My Grandmother’s Hands Generative Somatics, Actions | Solidarity Not Charity: A Rapid Report | 15 Resmaa Menakem, Decolonial Futures Engage artists and staff in Surdna Foundation, Hewlett Foundation, transformative justice and Leeway Foundation, Conduct listening sessions conflict transformation work. Kenneth Rainin Foundation, with grantees, stakeholders, CultureBank community members, and the people most impacted by McKnight Foundation grantmaking decisions. How to Address Conduct Issues

CultureBank Leeway Foundation Enable arts community-led SF Arts Commission participatory grantmaking Transition from for public arts monies. a White-led family foundation to a foundation led by a multiracial community board. GOVERNANCE SHIFTS

Leeway’s Arts Collaboratory Impact Assessment

Create a giving circle Hewlett’s Kataly Foundation, or donor collaboration Distributed Ujima Project, Leadership Chordata Capital that centers culture report and Solidaritywork. Economy SELC Legal Guide

Practice distributed leadership and/or become a worker self-managed nonprofit. Leeway Foundation

Highlander Center, Sol Collective, New Economy Movement leaders and commu- Coalition, Kenneth Rainin nity members make decisions Foundation Sustainable Economies as non-board members or board Law Center members. Actions | Solidarity Not Charity: A Rapid Report | 16 Private founda- The Center for tions can partner Cultural Innovation in with nonprofits to support individual partnership with the Barr Foundation and Hewlett artists. Foundation, East Bay NextCityArticle, 2019; Community Foundation Peoples Economy

Fund communities to own their Support land bank own property. initiatives. More about supporting individual

artists East Bay Permanent Real Estate Cooperative

NEW TOOLS & TYPES OF SUPPORT

The Center for Cultural

Innovation Law Center Mutual Aid Legal Offer technical assistance Toolkit, GIA Toolbox for Supporting Individual and support from your legal Artists counsel to help co-ops get incorporated. -

The Sustainable Economies Law Center Foundations (partner with a nonprofit to) provide fiscal sponsor ship for investment cooperatives and mutual aid groups. First Peoples Fund, Justice Funders, Sol Collective

NDN Collective, Center for Economic Democracy, Social Impact Commons, Springboard for the Arts Be a guarantor for any kind of debt. Actions | Solidarity Not Charity: A Rapid Report | 17 Support intergenera- Hali Lee, First Peoples tional land stewardship Fund, Justice Funders, and reparations work. Outstanding Returns, Weavers Project

First Peoples Fund, Justice Funders, Resora / New Commu- Vanessa Roanhorse, nities, NDN Collective, Penelope Douglas Support culturally-grounded Center for Heirs’ Property Preservation, and community-led giving Ohketeau Center circles, peer-lending, and Agnes Gund funder collaboratives.

Use your assets to secure loans for BIPOC arts and culture Asian Women Giving Circle, Buen Vivir Fund, groups. Collateralize nonprofit NEW TOOLS & TYPES OF SUPPORT Lunar Project, Massachu- property and assets to help setts Solidarity Economy Initiative from the Center BIPOC arts and culture centers for Economic Democracy, access loans at much more Headwaters Foundation favorable termsapplied than alone. if they had

US Federation of Worker Cooperatives, Com- Highlander, Center for Eco- monFuture, Cooperative nomic Democracy, Center for Development Institute, Popular Economics, Kate Poole, The Center for Cultural Springboard for the Arts, New Economy Coalition Esteban Kelly, Anasa Troutman, Innovation, Barr Founda- Watershed, Democracy Collab- tion, Hewlett Foundation orative, US Department of Arts and Culture, Cooperative Development Institute Law Center training about foundation investments Be early investors and technical assistance providers for Support Solidarity Economy education for culture-bearers community-owned businesses. and artists to create Weavers Project, Boston initiatives and to support Ujima Project, Springboard for the Arts, Actions | Solidarity Not Charity: A Rapid Report | 18 existing initiatives. Alternate Roots Support peer-mentorship networks of grantees and SeedCommons, ZebrasUnite, The Center for Cultural First People’s Fund, Four Directions, Cooperative culturally-grounded organiza- Innovation, Barr Founda- Law Center training about tion, Hewlett Foundation, Development Institute, tions who are working for the Nexus Northstar Black Daryn Dodson foundation Solidarity Economy. investments Cooperative Fellowship NDN Collective, Center for Economic Democ- racy, HowlRound, Schumacher Center Alternate Roots, Intercul- Be early investors in cooperative for a New Economics tural Leadership Institute, DOEN Foundation, financial institutions. Sipp Culture, Sol Collec- Surdna Foundation , Govern- tive, MyceliuYUM ment Alliance on Race and Support community Equity, All in Cities currencies, local currencies, and time banks. NEW TOOLS & TYPES OF SUPPORT

SELC legal basics City employees and of time banks residents paid in local currency: Yamato, Japan; Calgary, Canada, Maricá, Brazil. Provide patient or low-interest Time Banks: loans that allow intermediaries, Boston Ujima Project ArtBuilt including CDFIs, to provide flexible terms to small businesses such as royalty financing and Support culturally convertible notes. anchoring grantees to have long-term affordable rental, Surdna to pay or buy out the mort- Stanford Innovation gages, or act as guarantors Social Review: Building an Inclusive Economy to renegotiate these debts. by Supporting Entrepreneurs of Color

Kenneth Rainin Foundation, Internet Archive, ArtBuilt Actions | Solidarity Not Charity: A Rapid Report | 19 Make portfolio investments Kresge and Annie E. that are mission-aligned and Kasey Foundation establish Invest4All & operating in concert with secure collaboration with First Peoples Fund, Vanessa Roanhorse, grantmaking. Prudential Penelope Douglas, Law Center Upstart Co-Lab, Foundation investmentstraining about and SeedCommons the Prudent Investor Rule

Emerson Collective, Start Share your investment portfolio Small, Akonadi Foundation, publicly or in peer group Blue Haven Initiative, Nia Impact Capital contexts to invite opportunities for accountability and collaboration.

Swift Foundation, Kristin Hull Revise investment policies and INVESTMENT & ENDOWMENT SHIFTS mission/vision/bylaws to include support for the Solidarity Economy.

Morgan Simon, Mellon Foundation, Springboard for Arts, Crosshatch FB Heron Foundation, Swift Foundation, Emerson Collective, Start Small, Schumacher Center for a Akonadi Foundation, Blue Haven New Economics, Initiative, Nia Impact Capital Mary Reynolds Babcock Foundation, Springboard for the Arts Add financial and investment advisors who have knowledge and Move deposits and fixed income portions of the invest Vanessa Roanhorse, experience investing in - Penelope Douglas, the Solidarity Economy ment portfolio to commu- Upstart Co-Lab, and culture. nity development financial CNote institutions such as credit unions.

Actions | Solidarity Not Charity: A Rapid Report | 20 YOXI, Surdna Foundation, Yerba Buena Center for the Southern Reparations Loan Fund, Patriotic Arts Janelle Orsi of SELC Millionaires Join a peer group to continue discusses this and the 5% minimum required spend learning about transforming rate early in this video. finance. Increase your “spend rate” to 10% or more or spend down the Justice Funders, Transform Finance, CED endowment. Solidarity Philanthropy Learning Circle, Chordata Capital, Outstanding Returns The Fund for Democratic Communities, Merck Foundation, Patriotic Millionaires

McKnight Foundation, INVESTMENT & ENDOWMENT SHIFTS Swift Foundation, Local Initiatives Support Cor - poration, California Public Employees Retirement Create donor-advised funds System and partner with fund managers Law Center to establish program-specific Foundation traininginvestments about funds to directly source, evaluate, and underwrite investments. Make bold investments in the First Peoples Fund, Vanessa Solidarity Economy. Swift Foundation, Roanhorse, Penelope Barr Foundation, Douglas, Upstart Co-Lab, CultureBank, SeedCommons, Justice Buen Vivir Fund, MacKenzie First Peoples Fund, Funders Scott NDN Collective, Vanessa Roanhorse, Penelope Douglas, Upstart Co-Lab, SeedCommons The Working World Make concessionary or Project Equity, Daryn Dodson below market investments that support the Solidarity Economy. Actions | Solidarity Not Charity: A Rapid Report | 21 Support existing business development and technical assistance providers in arts DOEN / ArtsCollaboratory, and culture to work with existing Kadist / AField, Lambent Solidarity Economy groups, Foundation The Center for Cultural Innovation, Barr and vice versa. Foundation, Hewlett US Federation of Worker Foundation, Invest4All, Cooperatives, CommonFu- Support the development of Detroit Entrepreneurs ture, Cooperative Develop- relationships and collaborations of Color, Libra Founda- ment Institute, Springboard tion, EBCF, San Francisco for the Arts, New Economy internationally with a focus on Coalition Foundation culture and the Solidarity Economy.

32° East | Ugandan Arts Trust

TAKE A SYSTEMS-CHANGE APPROACH

Fund communications strategy and media at Solidarity Economy institutions and networks.

Media Reparations 2070, Free- No one is doing this yet. Press, Center for Urban Pedagogy McKnight Foundation, Create donor-advised funds Swift Foundation, Local Initiatives and partner with fund managers Support Corporation, California Public to establish program-specific Employees Retirement funds to directly source, System evaluateinvestments. and underwrite First Peoples Fund, See the list of interviewees for this Vanessa Roanhorse, Penelope Douglas, Upstart report and the Center for Economic consultants in this Co-Lab, SeedCommons, Democracy, Surdna Justice Funders Foundation, spreadsheet. NDN Collective Support the development of relationships and collaborations between strong regional net - works with a focus on culture Actions | Solidarity Not Charity: A Rapid Report | 22 and the Solidarity Economy. Invest with BIPOC financial The Center for Economic partners—even at invest- Democracy, Jessica Gordon Nembhard, Anasa Troutman, ment firms without a stated Weavers Project, USWFC commitment to investing in BIPOC—evidence suggests venture capital firms led by Fund permanent BIPOC are also more likely research centers for to support investees or Solidarity Economy and communities of color. culture

No one is doing this yet. Mission Investors Exchange

Stanford Social Innovation Review TAKE A SYSTEMS-CHANGE APPROACH

Convene the next generation Stanford SocialReview Innovation of public sector workers with List of Investment Funds, culturally-grounded Work to reach outside of Advisors, byand BIPOC Accelerators Folx Led organizations, artists, and your network because evi- 25+ Black VCs culture-bearers. dence suggests people tend to build networks within their race or ethnicity. Regional Offices of Cultural Affairs, Intercultural Leadership Institute, USWFC, New Economy Coalition, Mission Investors CommonFuture, SeedCommons, Exchange Mayors for Guaranteed Income, Government Alliance on Race and Equity, All in Cities

No one is doing this yet. Consider DAWI’s Seed Fellowship as a model, shifting the focus to arts and culture. Actions | Solidarity Not Charity: A Rapid Report | 23 Cooperative Development Convene Solidarity Economy Institute lawyers and financial innovators and center culture-bearers, artists, and Support cross-sector collabora- culturally-grounded tions and supply-chains and tech- organizations. nical assistance for culture and Solidarity Economy. Sustainable Economies Law Center, USFWC, SeedCommons, ZebrasUnite No one is doing this yet.

No one is doing this yet.

TAKE A SYSTEMS-CHANGE APPROACH Surdna, McKnight

Create culture and economic justice portfolios; reward col- SELC presentation on Legal laboration across culture and and Strategic Frontiers of Foundation Investments economic justice portfolios. (begin at slide 65) AmbitioUS, Intercul- tural Leadership Transform due diligence pro- Institute, Highlander, cesses to include and account NDN Collective for three additional questions: Does it spread power? Does it spread wealth? Does it root community wealth and power?

Map SELC Legal Frontiers and Sustainable Foundation Investments Economies Law Bank at Black-owned banks. Training Video Center

Janelle Orsi Chapter on Commons Based Legal Mission Investors Exchange Prudential Financial, Win- Structures throp Rockefeller Foun- dation Actions | Solidarity Not Charity: A Rapid Report | 24 Support public procurement Support the Cultural from Solidarity New Deal and People’s Economy entities; Works Progress hire artists and culture- Administration. bearers as full-time Caribbean Cultural Center African employees. Diaspora Institute, Center for Cultural Power, US DepartmentCulture of Arts and Rachel Chanoff and THE Yerba Buena Center for the OFFICE, Springboard for Arts, ASU/National the Arts, San Francisco Accelerator, Policy Link Creative Corps POLICY ADVOCACY

Report San Francisco Founda- tion,Yerba Buena Center for the Arts, St. Paul Foundation, Springboard for the Arts Advocate for guaranteed NDN Collective, Aliento, basic income. Reyna Montoya, National Accelerator for Cultural PolicyLink, Demos, Mayors for Guaranteed Income Center culture in Innovation, Estrella Esquilín, Gabriela Muñoz, Jen Cole Center for community benefit Guaranteed agreements. Income Research at UPenn

Actions | Solidarity Not Charity: A Rapid Report | 25 Aliento, Reyna Montoya, NALAC, National Support artists, Accelerator for Cultural Innovation, Estrella culture-bearers, and coop- Esquilín, Gabriela Muñoz, Jen Cole, Carib- bean Cultural Center African Diaspora Insti- erative and solidarity en- tute, Center for Cultural Power, US Depart- ment of Arts and Culture, Alternate Roots, trepreneurship programs Intercultural Leadership Institute, Smart in public education and in Cities, First People’s Fund, Lauren Ruffin, Government Alliance on Race and Equity, the Workforce Innovation All in Cities and Opportunity Act. Aliento, Reyna Montoya, National Accelerator Support peer-to- for Cultural Innovation, Juxtaposition Arts, Estrella Esquilín, Gabriela Appalshop peer policy Muñoz, Jen Cole, exchange. Government Alliance on Race and Equity, All in Cities SF Arts Coalition

POLICY ADVOCACY

US Federation of Worker Cooperatives, New Economy Coalition, Democracy Federal Reserve at Work Institute, National Cooperative Community Business Association, Greenworker Expand the Community Reinvestment Act Cooperatives, American Sustainable Business Council, Cooperative Reinvestment Act. Development Institute Borealis NCRC National Community Reinvestment Coalition Support the organizations that are already doing Solidarity Economy and co-op policy advocacy. Justice Funders

Advocate for increased minimum payout rates. Actions | Solidarity Not Charity: A Rapid Report | 26 1

5 Solidarity Not Charity: A Rapid Report | 27 What is your commitment to racial and economic justice?

“Together we can rekindle in our children the gift of our culture as passed down to us from our grandparents, par- ents and other forebearers. Together we can honor the resilience of our people who suffered and died to give us basic freedoms like the right to vote, the right to protest and the right to sit at a lunch counter. Together, let us work to be the change we want to see and design a better future for us all.”

—Melody Capote, Director, Caribbean Cultural Center16

16 Melody Capote, Caribbean Cultural Center Newsletter, (January, 2021). Approximately 0.5% of the total $66.9 billion given by foundations directly supports women and girls of color.17

Less than 0.5% of annual foundation grant dollars go to Native Americans despite the fact that they account for nearly 2% (5.4 million) of the US population.18

How does your commitment to racial and economic justice show up in your

17 Maggie May, “Ms. Foundation: Donors Must Step Up for Women and Girls of Color,” grantmaking? Philanthropy Women, July 6, 2020, https:// philanthropywomen.org/research/ms-foundation-donors-must-step-up-for-women- and-girls-of-color/.

18 “The Need,” Native Americans in Philanthro- py, accessed February 6, 2021, https://native- philanthropy.org/the-need/. What actions do you need to take to address systemic racism in grantmaking?

Foundation and individual giving in 2020 19 Philanthropy and COVID-19 in the first half documented that only 5% of pandemic-response of 2020 (Candid and CDP, 2020), https://www. issuelab.org/resources/37232/37232.pdf; and “The Future We Want: Racial and Disability dollars and 12% of the grants were intended for Justice,” Grantmakers in the Arts, October 19 9, 2020, https://www.giarts.org/blog/eddie/ communities of color. future-we-want-racial-and-disability-justice. See also Not Just Money (Helicon Collaborative, July 2017), 7 and 11, accessed January 21, 2021, http://www.notjustmoney.us/docs/ NotJustMoney_Full_Report_July2017.pdf. What would it look like if the economy loved Black people? How will you fuse study with action? —Aisha Shillingford, Intelligent Mischief “Everyone has a part to play in enacting this vision. Funders can fund cultural communities to own property as well as ensure that community members have governance control. They can be early investors in community-owned businesses and financial institutions, which allows money to stay within communities and keep them insulated from uncertainties of non-local markets and global economies.

Grantmakers can support culturally anchoring grantees to pay or buy out the mortgages of nonprofits and their workers or act as guarantors to renegotiate these debts. Nonprofit institutions that own property can collateralize this asset to help BIPOC arts and culture centers access loans at much more favorable terms than if they had applied alone.”

—Angie Kim, CEO, Center for Cultural Innovation20

20 Angie Kim, “Angie Kim on Ownership as Collective Vision,” Ford Foundation: The Co-op, accessed January 24, 2021, https://www. fordfoundation.org/campaigns/creative- futures/?popup=14681. Introduction

Solidarity Not Charity

Left and right, calls for systems-change in caught up on rent or mortgage, food inse- arts and culture grantmaking can be heard. curity, physical health problems, symptoms Statements about racial equity and economic of anxiety or depression, or lack of health justice have been made by many grantmak- insurance.22 Inequalities are exacerbated ers, and structural changes are starting to be along racial and ethnic lines, with Latinx and made in practice, policy, and mission to ad- Black children experiencing three or more vance equity in the sector. It is time for urgent of these hardships at twice the rate of their action. If not now, when? White counterparts.23

The combined crises of police brutality, the Grantmakers are starting to conduct a careful COVID-19 pandemic, climate change, White analysis of the systems that produce ongo- supremacy, and soaring unemployment have ing crises, including structural racism and exacerbated the existing inequities in the arts the role of neoliberal economic governance and culture sector. It has only been thirteen and its marshalling of racial capitalism.24 years since the subprime mortgage crisis and The diagram to the right visualizes structural the world economy is again in shock. racism that occurs at multiple levels—individual, interpersonal, organizational, community, While gains on Wall Street are at an all time and public policy—and contributes to extreme 1 high and billionaires’ fortunes in the United hardship and inequity before and during the States have increased by 38% during era of the COVID-19 pandemic. To address 2 the pandemic alone,21 most people in the structural racism and produce equity, grant- United States are experiencing unemploy- makers are shifting their practices to include 3 ment, difficulty paying expenses, not being systems-change in their mission and policy.

5 Introduction | Solidarity Not Charity: A Rapid Report | 33 Introduction

Key Terms Systems-change addresses root causes or African, Latinx, Arab, Asian, Native-Amer- rather than symptoms and thus tends to take ican (ALAANA) in order to center Black and a multidisciplinary, long-term approach that Indigenous experience and to acknowledge requires transforming policies, practices, rela- ways that anti-Black racism and the practiced tionships, and power dynamics.26 erasure of Indigenous peoples continues to shape dominant culture, practice, and policy Racial capitalism refers to the ways in which in the United States.30 racialized subjects made (and make) capitalism possible, including slavery, violence, Equity Grantmakers in the Arts defines equity imperialism, and genocide.27 as “the fair treatment, access, opportunity, and advancement for all people, while at the Neoliberalism is an economic philosophy same time striving to identify and eliminate which entails a belief that private markets barriers that have prevented the full partic- will solve all problems and a corresponding ipation of some groups. Improving equity defunding of state and public sector services involves increasing justice and fairness within and has likewise eviscerated public arts fund- the procedures and processes of institutions ing.28 or systems, as well as in their distribution of resources. Tackling equity issues requires an Structural racism involves “macro level sys- understanding of the root causes of outcome tems, social forces, institutions, ideologies, disparities within our society.”31 and processes that interact with one another to generate and reinforce inequities among Philanthropic Racial Equity Grantmakers in 29 1 racial and ethnic groups.” the Arts defines racial equity in philanthropy as “the investment of social and financial 2 BIPOC This report uses the term “Black, In- resources in policies, practices, and actions digenous, and other communities of color” that produce equitable access, power, and 32 3 or BIPOC rather than People of Color (POC) outcomes for BIPOC].”

5 Introduction | Solidarity Not Charity: A Rapid Report | 34 Introduction

The United Nations Inter-Agency Task Force on Social and Solidarity Economy (SSE), established in 2013, defines the SSE (or Solidarity Economy / SE in shorthand) as “a concept designating organizations, in particular cooperatives, mutual benefit societies, associations, foun- Grantmakers in the arts and culture sector of the world, entities that share principles of ing. This report begins to demonstrate some dations and social enterprises, which produce can conduct a power analysis (See Recom- cooperation, participatory democracy, inter- of what the Solidarity Economy can offer for goods, services and knowledge while pursuing mendations on page 75) and play a role in the sectional equity, sustainability, and pluralism cultural equity and racial justice, and what both economic and social aims and fostering transformation of the sector by following the are actively supported under one umbrella: arts and culture grantmakers can do to con- solidarity.” In the Solidarity Economy, a majority lead of Black, Indigenous, and other commu- the Solidarity Economy. These entities are tribute to lasting change. of the things a community needs are controlled nities of color (BIPOC) arts and culture-bear- supported and incentivized to connect and governed by everyday people: housing, ers who are building economic democracy across sectors in the Solidarity Economy schools, farms and food production, local gover- in their communities now. To survive and with policies that address their shared social, nance structures, art and culture, healthcare and thrive, creative people are co-creating more fiscal, credit, investment, and training needs. healing, and transportation. humane and racially just economic models in their local communities. A generation of Cooperatives, land trusts, and other elements trans-regional, globally-connected creators of the Solidarity Economy have been proven are sharing practices and adapting them to more likely to withstand financial crises, ad- their local contexts. Culture-bearers are at vance racial equity, and increase community the center of innovative mutual aid networks, wealth.35 And yet, to date, there has been community land trusts, investment coopera- little field-wide research of the Solidarity tives, and community currencies. Economy as it relates to arts and culture in the United States. This report aims to kick off 1 While these entities might seem discon- a necessary exploration of the intersection nected, they often rely upon one another of cultural practice and the Solidarity Econ- 2 for support as interdependent parts of an omy—of culture and community-control of economic justice ecosystem. In many parts work, housing, land, energy, media, and heal- 3

5 Introduction | Solidarity Not Charity: A Rapid Report | 35 “What if our economy valued our work, our lives, and our power like our labor was what This rapid report was commissioned by GIA in late November of 2020, made everything possible? and it was published four months later, in late March of 2021. To continue this work, GIA must invite in a broad community of working class, queer, disabled, trans, and BIPOC culture-bearers, artists, heal- ers, grantmakers, policymakers, academics, and Solidarity Economy organizers to shape GIA’s related strategy and priorities.

For more information, and update, go to: art.coop.

What if our political economy valued what we value: care for our disabled, elderly, and sick, social justice, democracy? We are clear in our commitment to an economy and society managed by the people, for the people.”

1 —Highlander Center36

5 Introduction | Solidarity Not Charity: A Rapid Report | 36 Introduction

Aims of the Report

This report provides a brief mapping, over- The report was initiated view, and key recommendations about the ways that our nation’s arts grantmaking by Grantmakers in the community can strengthen the connections Arts to identify: between art, culture, and economic and racial justice through the framework of the Solidarity Economy. Principal players in “Solidarity Examples of racially Economy” “New Economy” and equitable alternative funding “Alternative Economy” spaces models and new economies

Patterns in this work Principles to promote

Opportunities Opportunities for for coordination investment 1 between actors 2

3 Barriers to adoption Who to influence

5 Introduction | Solidarity Not Charity: A Rapid Report | 37 Introduction

Methodology

The main phases of this rapid report, con- Interviews—a series of interviews was car- Peer review—this document was reviewed ducted from November 2020 – March 2021, ried out with over 60 artists, culture-bearers, by Caron Atlas, David Bollier, Esther Choi, Eli were: and grantmakers.* Feghali, Alexis Frasz, Emily Kawano, Dana Kawaoka-Chen, Francisco Pérez, and Maliha Attendance at a variety of conferences Literature and media review of over three Safri, and structural edits were incorporated. including GIA’s Virtual Convening Power, hundred reports, books, articles, films, web- Practice, Resilience | Remix; The Center for sites, graphics, posters, poems, and other Consent—We have made every effort to Cultural Innovation’s conference In-Common: relevant creative outputs and publications. ensure that the recommendations, case To Exchange, To Survive, and To Sustain; Read the footnotes and “Learn More: Top 10 studies, and quotations have been reviewed Casco Art Institute’s 2020 Third annual Resources” section for more. and approved by our interviewees. We will Assembly: We Owe Each Other Everything; amend future versions of this report to reflect the Center for Popular Economics’ Art for Defining terms—creating working defini- ongoing feedback from the people, groups, Liberation workshop; Highlander Center and tions of the “Solidarity Economy” and related and organizations who are impacted by this US Solidarity Economy Network’s Solidarity terms. document. Economy 101; Jack NY & YAH World’s Media Tools For Liberation; US Department of Arts Developing an internal database—a direc- Convening—the budget for this report al- & Culture’s Ways and Means of We Economy; tory in progress of emerging and active soli- lowed for a small, internal convening of inter- and Cooperation Humboldt’s Artists Disman- darity arts economy cultural workers, groups, viewees. See the Recommendations on page 1 tling Capitalism, among others. and organizations across sectors, with an 84 to continue this work. emphasis on the arts and culture. 2

5 Introduction | Solidarity Not Charity: A Rapid Report | 38 · Nwamaka Agbo (CEO, Kataly Foundation) · Willa Conway (Founder, Weavers Fellowship) · Jeffreen Hayes (Executive Director, Three- walls) · Caron Atlas (Director, Arts & Democracy) · Joey DeFrancesco (Historian and Organizer, Union for Musicians and Allied Workers) · Tempestt Hazell (Program Officer, Field Foun- · Teesa Bahana (Director, 32° East Ugandan dation) Arts Trust, Uganda) · Tara Dorabji (Director, the Center for Cultural Power) · Greg Jackson (Founder, Repaired Nations and · Julia Beatty (Program Officer, Black-Led Equal Justice Works Fellow at the Sustainable Movement Fund and the Communities Trans- · Penelope Douglas (Chief of Strategy and Rev- Economies Law Center) forming Policing Fund, Borealis Philanthropy) enue, Yerba Buena Center for the Arts) * This document was · Michael Johnson (Director of Advancement, · Alicia Bell (Organizing Manager, Free Press · Estrella Esquilín (Program Manager, National NDN Collective) developed with support and Media Reparations 2070) Accelerator for Cultural Innovation, Arizona from Grantmakers in State University) · Emily Kawano (Co-Director, Wellspring Coop- · David Boillier (Director, Reinventing the Com- the Arts and draws erative Corporation and Coordinator, US Soli- mons Program, Schumacher Center for a New · Nia Evans (Director, Boston Ujima Project) darity Economy Network) upon interviews and Economics) · Eli Feghali (Network Organizer, New Economy conversations with: · Esteban Kelly (Executive Director, US Federa- · Craig Borowiak (Associate Professor of Politi- Coalition) tion of Worker Cooperatives) cal Science, Haverford College) · Gertrude Flentge (Program Manager, DOEN · Ceceile Klein (Double Edge Theatre) · Melody Capote (Executive Director of Carib- Foundation) bean Cultural Center African Diaspora Insti- · Arleta Little (Program Officer and Director of tute) · Reg Flowers (Artist, Activist, and Educator) Artist Fellowships, McKnight Foundation)

· Rachel Chanoff (Founder and Director, THE · Alexis Frasz (Co-Director, Helicon) · abdiel lópez (Program Officer, AmbitioUS, OFFICE) Center for Cultural Innovation) · Allen Kwabena Frimpong (Co-Founder, ZEAL) · Esther Choi (Doctoral Candidate, Ethnic Stud- · Josh MacPhee (Founding Member, JustSeeds · Luna Olavarria Gallegos (Storyteller, Re- 1 ies, University of California - San Diego) Collective) searcher, and Co-Founder, Art.Exit) · Binna Choi (Director, Casco Institute, Nether- · Annie McShiras (Investment and Fundraising 2 · Noémi Giszpenc (Executive Director, Coopera- lands) Director, East Bay Permanent Real Estate Co- tive Development Institute) operative) 3 · Jen Cole (Director, National Accelerator for · Lavastian Glenn (Director, Racial and Eco- Cultural Innovation, Arizona State University) · Margaret Morton (Creativity and Free Expres- 4 nomic Justice, The Nathan Cummings Foun- sion Team, Ford Foundation) dation) 5 Introduction | Solidarity Not Charity: A Rapid Report | 39 · Gabriela Muñoz (Program Coordinator, Nation- · Esther Robinson (Founder/ Co-Executive Di- · Carlton Turner (Lead Artist and Director, Mis- al Accelerator for Cultural Innovation, Arizona rector, ArtBuilt) sissippi Center for Cultural Production) State University) · Ted Russell (Associate Director, Kenneth · F. Javier Torres-Campos (Program Director, · Jennifer Near (Philanthropic Advisor and Or- Rainin Foundation) Thriving Cultures, Surdna Foundation) ganizational Consultant) · Maliha Safri (Chair and Associate Professor of · Carlos Uriona (Co-Artistic Director, Double · Jessica Gordon Nembhard (Professor, Com- Economics, Drew University) Edge Theatre) munity Justice and Social Economic Develop- ment, Department of Africana Studies, CUNY) · Estella Sanchez (Founder, Sol Collective) · James Vamboi (Chief of Staff, Boston Ujima * This document was Project) · Emiko Ono (Director, Performing Arts Pro- · Nathan Schneider (Assistant Professor, Media developed with support gram, William and Flora Hewlett Foundation) Studies, University of Colorado - Boulder) · Andrés Villalobos (Member, Cooperativa Cráter from Grantmakers in Invertido, Mexico) · Noni Session, (Director, East Bay Permanent the Arts and draws · Janelle Orsi (Director, Sustainable Economies Law Center) Real Estate Cooperative) · Ed Whitfield (co-Managing Director, Fund for upon interviews and Democratic Communities) · Danya Sherman (Sherman Cultural Strategies, conversations with: · Alexis Ortiz (Senior Program Associate, Office of the President, Andrew W. Mellon Founda- Consultant for ArtPlace America) · Susan Witt (Director, Schumacher Center for a tion) New Economics) · Aisha Shillingford (Intelligent Mischief) · Leticia Peguero (Vice President of Programs, · San San Wong (Director of Arts & Creativity, · Kamal Sinclair (Executive Director, Guild of Nathan Cummings Foundation) Barr Foundation) Future Architects) · Francisco Pérez (Director, Center for Popular · DeeArah Wright (Artist, Creative Strategist) · Gaby Strong (Director of Grantmaking, NDN Economics) Collective) · Laura Zabel (Executive Director, Springboard · Cierra Peters (Communications Director, for the Arts) · Leila Tamari (Previous Senior Program Officer, Boston Ujima Project) ArtPlace America) 1 · Yvon Poirier (Vice-Coordinator, RIPESS) · Aaron Tanaka (Co-Founder and Director, 2 · Kate Poole (Principal, Chordata Capital) Center for Economic Democracy)

3 · Michelle Ramos (Vision Keeper / Executive · Anasa Troutman (Cultural Strategist) Director, Alternate Roots) 4

5 Introduction | Solidarity Not Charity: A Rapid Report | 40 Introduction

What is the Solidarity Economy?

To make lasting progressive change, coordi- The United Nations Inter-Agency Task Force Cooperation Humboldt, a regional Solidarity nation of actors and of vocabulary is required. on Social and Solidarity Economy (SSE), es- Economy network in California’s North Coast How can key stakeholders work together with- tablished in 2013, defines the SSE as “a con- that centers artists and culture-bearers, defines out a shared understanding of the terms we cept designating organizations, in particular the 5 Principles of a Solidarity Economy39 as are using? This section provides a summary cooperatives, mutual benefit societies, asso- follows: of terms, a brief history of the term Solidarity ciations, foundations and social enterprises, Economy, and rationale for community-con- which produce goods, services and knowl- Pluralism—Solidarity Economy is not a fixed Sustainability—Drawing heavily upon Indig- trol over the very vocabulary that is used by edge while pursuing both economic and social blueprint, but rather acknowledges that there enous perspectives of living in harmony with the arts grantmaking community. We encour- aims and fostering solidarity.”37 are multiple paths to the same goal of a just nature and with each other, Solidarity Econo- age grantmakers to adopt and learn about the and sustainable world. my upholds the principles of sustainability and term used internationally by governments, regeneration. philanthropists, artists, and arts organizers Solidarity—This includes a range of social alike—“Social and Solidarity Economy” or “Sol- interactions grounded in collective practices Participatory Democracy—Solidarity Econ- such as cooperation, mutualism, sharing, reci- omy embraces participatory democracy by idarity Economy”—rather than creating new In the Solidarity Economy, all of the things procity, altruism, love, caring, and gifting. enabling decision making and action to be terms that might make international cooper- a community needs are controlled and as local as possible, thereby providing ways ation more difficult in the future. This term is governed by everyday people: housing, Equity—Solidarity Economy opposes all forms for people to participate directly in decision widely used in Brazil, Colombia, Italy, Luxem- schools, farms and food production, of oppression: imperialism and colonization; making about their communities. bourg, Quebec, France, South Korea, Ecuador, local governance structures, art and 1 racial, ethnic, religious, LGBTQIA+, patriarchy, Spain, Cameroon, Cape Verde, Japan, Indone- culture, healthcare and healing, and and cultural discrimination. sia, Japan, Malaysia, and Costa Rica. transportation.38 2

5 Introduction | Solidarity Not Charity: A Rapid Report | 41 Introduction

In the spirit of pluralism and co-creation, a In our interviews with over 25 artists and While practices of equitable and sustainable term that holds these concepts together or variety of definitions of the Solidarity Econ- culture-bearers, we heard that the following self-determination and community-control that these practices are supported holistically omy can be celebrated. RIPESS, the inter- terms resonate with their communities: self are rooted in a myriad of ancestral and com- in other countries around the world. continental network that was formed across determination, equity, participatory bud- munity norms, the term “Solidarity Economy” Latin America and the Caribbean, North geting, worker cooperatives, credit unions, is relatively contemporary. The term “Solidar- America, Europe, Africa, Asia, and Oceania in mutual aid, community development, ity Economy” emerged in Chile and France in 1997 for the promotion of the Social Solidarity cooperative economics, just transition,41 the 1980s,46 gained popularity in Latin Amer- Economy (SSE), defines the Social Solidarity restorative economics,42 regenerative ica (as “economia solidária”) in the 1990s, NOTE: While using the term Solidarity Economy Economy (SE) as “an alternative to capitalism economics,43 Black economics,44 new and spread globally as an interdependent will connect arts and culture grantmakers in the and other authoritarian, state-dominated economy, community economies,45 De- movement after the first annual World Social United States to an international conversation, economic systems. In SSE ordinary people growth, commons, dual power, liberation Forum in Brazil in 2001, which popularized we urge grantmakers to consider adopting the play an active role in shaping all of the di- economy, and economic justice. We rec- the slogan “another world is possible.”47 The vocabulary that their grantees use to describe mensions of human life: economic, social, ommend that further study be undertaken Solidarity Economy is now recognized inter- their own practices of community-control and cultural, political, and environmental. SSE to map the intersections of key terms in this nationally as a way to value people and the self-determination and to engage their grantees exists in all sectors of the economy—pro- emergent discourse in the United States, and planet over profits and to unite grassroots and community stakeholders in conversations duction, finance, distribution, exchange, to make connections between these terms practices like lending circles, credit unions, about the terms that are most meaningful in their consumption and governance. (…) SSE seeks and the international discourse around the worker cooperatives, and community land communities, based upon their own traditions, systemic transformation that goes beyond Solidarity Economy. See our Recommenda- trusts to form a base of political power and identities, and cultural contexts. 1 superficial change in which the root op- tions on page 84 for more. transform our economy and world. Most pressive structures and fundamental issues people are aware of the discrete practices 2 remain intact.”40 and models that comprise the Solidarity Economy, but do not know that there is a 3

5 Introduction | Solidarity Not Charity: A Rapid Report | 42 Introduction

“How can we not just put out the fires of the world, but build the solutions that can replace the destructive systems, to create community wealth? How can we invest in things that are stable and build assets in our communities?”

—Janelle Orsi, Sustainable Economies Law Center

4 Susan Jahoda and Caroline Woolard of BFAMFAPhD, diagram of the Solidarity Economy by Ethan Miller, adapted 5 for the book Making and Being by BFAMAPhD, dimensions variable, 2018. Introduction | Solidarity Not Charity: A Rapid Report | 43 Introduction Here are a few examples of arts and culture groups and initiatives in the Solidarity Econ- omy. As shown throughout the report, all networks and infrastructure in the Solidarity Economy—regardless of their emphasis on arts and culture—will support artists and culture-bearers.

Land and Housing Money and Finance Energy and Utilities

Community Land Trusts: Community Arts Participatory Budgeting: Boston Ujima Community Solar: Soulardarity Stabilization Trust, Oakland CLT, Cooper Project, Runway Community Broadband: Institute for Local Square Community Land Trust Credit Unions: Actors Federal Credit Union Self Reliance’s MuniNetworks Permanent Real Estate Cooperatives: East Community Currencies: Circles, Tandas Energy Democracy: Uprose Brooklyn Bay Permanent Real Estate Cooperative CDFIs: The Working World, SeedCommons, Housing Cooperatives: Divine House, Art First People’s Fund, Oweesta Corporation Cooperative Solidarity Philanthropy and Grantmaking: Food and Farming Cohousing and Intentional Communities: Center for Economic Democracy, Weavers Covenant Arts Community, MilePost 5 Project, AmbitioUS, NDNCollective, Intercul- Community Gardens: All community gar- tural Leadership Institute dens! Work and Labor Community Supported Agriculture: All Media and Technology CSAs! In the Solidarity Economy, sectors that have Worker Cooperatives: Rhythm Conspiracy, Food and Farm Co-ops: Soul Fire Farm, been siloed begin to support one another Resonate.Is, Akron Devil Strip, Happy Family Worker-owned Media: Media Reparations, Double Edge Theatre, Cooperative Food and work in concert; they gain power and Night Market, Design Action Collective, Sur- Associated Press Empowerment Directive (CoFED), Acres of can advocate for shared policies that sup- plusPlus Community Radio: KOJH 104.7 FM (Mutual Ancestry port community ownership and democratic Producer Cooperatives: 200 Million Arti- Musicians Foundation) Community Fridges: All Community fridges! governance. sans, Just Seeds Platform Cooperatives: Crux, Guilded, 1 Time Banking: Boston Ujima Project, Meta- Ampled, and internationally Stocksy in sofa Arts Community, Kolanut Collaborative Canada, SmArt in Belgium, Arctic Co-ops in 2 Mutual Aid: NDN Collective, Sol Collective Canada, and Doc Servizi in Italy Barter Systems & Non-Monetary Ex- Solutions Journalism: Solutions Journalism 3 change: O+ Festival Network Organizing: Frontline Arts Buffalo, Solidarity Open Source: Mozilla, Wikipedia 4 Economy St. Louis Copyleft: Creative Commons

5 Introduction | Solidarity Not Charity: A Rapid Report | 44 Introduction

Definitions

Participatory Budgeting Study Groups Mutual Aid community wealth for low-income communi- Communities decide how they want to spend People learn about the history of collective People helping each other meet their needs, ties. public money in their neighborhoods. work together to connect to their shared often with a shared political commitment. power and take action. Community Wealth Cooperative Arts Collectives and Cooperatives Worker-Managed Non Profit Give the power of big finance to small, com- Artists get together, form a business, and Time Banking A non-profit organization that is managed munity-centered actors, creating a network make decisions about how it operates and People exchange an hour for an hour, meet- democratically by its workers rather than by a that makes local investments that serve how profits are distributed. ing one another’s needs without money. single Director. people rather than extracting from them.

Community Land Trusts Community Currency Consumer Co-op NOTE: These are informal definitions that Land and buildings are moved from the A currency that circulates locally to encour- A buying club that is owned and run by the the authors have developed for popular speculative market to a nonprofit. Decisions age greater local spending. people who use it. education contexts. For more information are made by residents and community mem- about each concept, please visit https:// bers to make sure the space is affordable Investment Cooperative Platform Co-op neweconomy.net/solidarity-econo- forever. People pool their savings and make decisions A digital platform that is owned and run by its my/#what-is-the-solidarity-economy. together about how to invest it. users. Permanent Real Estate Cooperative Buildings are moved from the speculative Credit Union Community Development Financial 1 market to a co-op that serves people rather A bank owned by its members that is com- Institution than profit. Decisions are made by residents mittedcommited to investing in local com- A range of institutions and funds—including 2 and community members to make sure the munities. non-profit banks, credit unions, loan funds, space is affordable forever. and venture capital funds—that exist to grow 3

5 Introduction | Solidarity Not Charity: A Rapid Report | 45 Introduction

Endnotes

21 “The combined fortune of the nation’s 660 billionaires as 283cdff53056; and Emily Kawano and Julie Matthaei, “Sys- ty-statement-of-purpose.pdf. https://www.gsef-net.org/sites/default/files/publication/ of Monday, January 18, 2021 was $4.1 trillion, up 38.6% from tem Change: A Basic Primer to the Solidarity Economy,” 32Grantmakers in the Arts, Racial Equity in Arts Funding, What%20role%20for%20the%20Social%20and%20Solidari- their collective net worth of just under $3 trillion on March 18, Nonprofit Quarterly (NPQ) (July 8, 2020), https://nonprof- (Bronx, NY: Grantmakers in the Arts, Revised April 11, 2019), ty%20Economy%20in%20the%20post%20COVID-19%20cri- 2020, the rough start of the pandemic, based on Forbes data itquarterly.org/system-change-a-basic-primer-to-the-soli- https://www.giarts.org/sites/default/files/GIA-racial-equi- sis%20recovery%20%28UNTFSSE%2C%202020%29.pdf. compiled in this report by Americans for Tax Fairness (ATF) darity-economy. ty-statement-of-purpose.pdf. 38 “The Solidarity Economy,” New Economy Coalition, ac- and the Institute for Policy Studies (IPS). There have been 46 25 Sahra Ibrahimi et al. “COVID-19 Devastation of African 33 UNTFSSE, What Role for the Social and Solidarity Econo- cessed January 17, 2021, https://neweconomy.net/solidari- newly minted billionaires since the beginning of the pandem- American Families: Impact on Mental Health and the Conse- my in the Post COVID-19 Crisis Recovery? (ILO, June 2020), ty-economy/. ic, when there were 614.” “10 Months into Crisis, US Billion- quence of Systemic Racism,” International Journal of MCH https://www.gsef-net.org/sites/default/files/publication/ 39 and Emily Kawano, Thomas Neal Masterson, and Jonathan aires’ Wealth Continues to Climb,” Americans for Tax Fairness, and AIDS 9, no. 3 (2020): 390–393. https://doi.org/10.21106/ What%20role%20for%20the%20Social%20and%20Solidari- Teller-Elsberg, eds., Solidarity Economy I: Building Alterna- January 29, 2021, https://americansfortaxfairness.org/10- ijma.408. ty%20Economy%20in%20the%20post%20COVID-19%20cri- tives for People and Planet: Papers And Reports from the months-crisis-u-s-billionaires-wealth-continues-climb-1-1- 26 Konstanze Frischen et al, “Embracing Complexity: Towards sis%20recovery%20%28UNTFSSE%2C%202020%29.pdf. 2009 US Forum On The Solidarity Economy (Center for Pop- trillion-nearly-40/. a shared understanding of funding systems change,” McK- 34 “The Solidarity Economy,” New Economy Coalition, ac- ular Economics, 2009), https://cooperationhumboldt.com/ 22 “The US economy shed 9.4 million jobs last year, the most in insey & Company (January 2020), https://www.ashoka.org/ cessed January 17, 2021, https://neweconomy.net/solidari- about-1/. any year since records began in 1939 and nearly double the 5 sites/default/files/2020-01/Embracing%20Complexity_ ty-economy/. 40 “What Is Social Solidarity Economy,” RIPESS, accessed million lost during 2009, after the housing crash.” Josh Mitch- Full%20Report_final.pdf. 35M. J. Roy, C. H. O’Connor, N. McHugh, O. Biosca, & C. Don- February 14, 2021, http://www.ripess.org/what-is-sse/ ell, “Covid-19 Surge Ends Seven Months of US Jobs Growth,” 27Cedric J. Robinson, Black Marxism : The Making of the Black aldson, “The New Merger: Combining Third Sector and Mar- what-is-social-solidarity-economy/?lang=en. The Wall Street Journal (2021), https://www.wsj.com/articles/ Radical Tradition (Chapel Hill: University of North Carolina ket-Based Approaches to Tackling Inequalities,” Social Busi- 41 Just Transition for Philanthropy (Justice Funders), ac- december-jobs-report-coronavirus-2020-11610080447. Press, 2000). ness 5, no. 1 (Spring 2015): 47–60, https://doi.org/10.1362/20 cessed January 17, 2021, http://justicefunders.org/wp-con- 23Christina M. Padilla and Dana Thomson, “More than One in 28 Cynthia Koch, “The Contest for American Culture: A Lead- 4440815X14267607784848; and Peter Utting, Public Policies tent/uploads/2019/01/Spectrum_Final_12.6.pdf; and “Re- Four Latino and Black Households with Children are Expe- ership Case Study on The NEA and NEH Funding Crisis,” Pub- for Social and Solidarity Economy; Assessing Progress in silience-Based Organizing,” Movement Generation: Justice riencing Three or More Hardships During COVID-19,” Child lic Talk (1998), https://www.upenn.edu/pnc/ptkoch.html. 29 Seven Countries (Geneva: ILO, 2017),16, https://www.ilo.org/ & Ecology Project, accessed January 17, 2021, https://move- Trends (January 13, 2021), https://www.childtrends.org/pub- Gilbert C. Gee and Chandra L. Ford, “Structural Racism and wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/ mentgeneration.org/resources/key-concepts/resiliencebase- lications/more-than-one-in-four-latino-and-black-house- Health Inequities,” Du Bois Review 8, (April 15, 2011): 115–132, documents/publication/wcms_582778.pdf. dorganizing/. holds-with-children-are-experiencing-three-or-more-hard- https://doi.org/10.1017/S1742058X11000130. 36 “Solidarity Economy in the South,” Highlander Re- 42 “What is Restorative Economics?,” Nwamaka Agbo Consult- ships-during-covid-19. 30”The BIPOC Project,” The BIPOC Project, accessed February search and Education Center, accessed January 12, 2021, ing, accessed January 17, 2021, https://www.nwamakaagbo. 24 Dana Kawaoka-Chen, “Philanthropy, This is Our ‘Matrix’ 6, 2021, https://www.thebipocproject.org/. https://highlandercenter.org/our-impact/solidarity-econo- com/restorative-economics. Moment...What Will You Choose?” Justice Funders, March 31 Grantmakers in the Arts, Racial Equity in Arts Funding, my-in-the-south/. 43“Planting Seeds of the Next Economy,” Regenerative Fi- 31, 2020, https://medium.com/justice-funders/philanthro- (Bronx, NY: Grantmakers in the Arts, Revised April 11, 2019), 37 UNTFSSE, What Role for the Social and Solidarity Econo- nance, accessed January 17, 2021, http://www.regenerativefi- py-this-is-our-matrix-moment-what-will-you-choose- https://www.giarts.org/sites/default/files/GIA-racial-equi- my in the Post COVID-19 Crisis Recovery? (ILO, June 2020), nance.com/old/collective-members/. 1

5 Introduction | Solidarity Not Charity: A Rapid Report | 46 Introduction

Endnotes

44 Black Economic Alliance, accessed January 17, 2021, https://blackeconomicalliance.org/. 45 Community Economies, accessed January 17, 2021, http:// www.communityeconomies.org/. 46Jean-Louis Laville, Benoît Lévesque, Marguerite Mendell, The Social Economy: Diverse Approaches and Practices in Europe and Canada, (Washington, DC: OECD, 2006): 155–187, https://ccednet-rcdec.ca/sites/ccednet-rcdec.ca/files/canada-europe.pdf; and Luis Razeto Migliaro, The Meaning of Sol- idarity Economy: Interviews with Luis Razeto Migliaro (March 2011), https://cborowiak.haverford.edu/solidarityeconomy/ wp-content/uploads/sites/3/2013/07/Interview-with-Lu- is-Razeto_May-2010.pdf. 47 Marcos Arruda, Solidarity Economy and the Rebirth of a Matristic Human Society (Mumbai: World Social Forum, Jan- uary 20, 2004), 2, http://base.socioeco.org/docs/doc-7390_ en.pdf.

5 Introduction | Solidarity Not Charity: A Rapid Report | 47 1

5 Solidarity Not Charity: A Rapid Report | 48 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

1. The economy of the cultural sector is broken. The cultural sector reinforces systemic racism.

Inequities in the arts and culture sector mir- pandemic-response dollars and 12% of In 2016, just 2 percent of all cultur- ror society at large and contribute to out- the grants were intended for communi- al institutions received nearly 60 comes that do not serve the majority of art- ties of color.53 percent of all contributed revenue, ists, culture-bearers, or culturally-grounded While many foundations significantly in- up approximately 5 percentage 50 institutions. Artists and culture-bearers creased giving to BIPOC organizations in points over a decade. mostly live on the margins of poverty or have 2020 in response to the uprisings of 2020, precarious and unpredictable economic con- Angie Kim, the President of the Center for 48 ditions. These conditions are magnified for Cultural Innovation, reminds grantmakers culturally-grounded organizations and BI- that, “Without investing in the infrastructure POC, differently abled, low wealth, rural, and for these communities’ own solidarity econ- “There’s often a kind of assumption that grantmakers make, assuming there is LGBTQIA+ artists and culture-bearers.49 omies, it is very unlikely that this funding will a lack of expertise and knowledge in communities that have experienced the close racial wealth gaps and ameliorate the In 2019, approximately 0.5% of the total most disinvestment and have historically struggled the most. There is an implied · kinds of structural problems that exclude $66.9 billion given by foundations di- or assumed failure or misbelief that people don’t know what they are doing too many artists from fully participating in rectly supports women and girls of col- at the community level. Rather than admitting that at every level the system is this sector.”54 To achieve economic justice, or.51 fighting against and failing these people, these families, and these communities, research shows that grantmakers must first grantmakers sometimes assume that these circumstances and struggles are a fault · When studying their applicant pool, understand how racial and cultural bias ap- Echoing Green found that “the unre- and a failure on the community’s part. Foundations and grantmakers need to pear in their grantmaking and to identify le- 1 stricted net assets of the Black-led or- better understand their role in perpetuating harmful power dynamics and distorted ganizations were 76 percent smaller vers to implement and measure racial equi- narratives and realize that they don’t hold all the knowledge.” 55 52 ty. See Action Checklist on page 13. 2 than their White-led counterparts.” · And yet, foundation and individual giv- —Tempestt Hazel, Field Foundation 3 ing in 2020 documented that only 5% of

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 49 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

1. The economy of the cultural sector is broken. The cultural sector reinforces systemic racism.

COVID-19 has exacerbated inequities in the wealth.58 Artists, particularly of color, who arts and culture sector. We are facing what cannot afford the financial precarity of gig Adam Krauthamer, president of Local 802 work, lack of worker benefits and protections, of the American Federation of Musicians in the high cost of academic degrees, and the New York, has called a “great cultural depres- crippling amounts of student loan debt can- sion.”56 As of December, 2020, Americans not contribute to the field.59 Grantmakers “The American Alliance of Museums shows that ⅓ of all museums may never for the Arts reports that: 63% of artists have have contributed to the high costs of entry reopen after the pandemic. We have not only a cultural, but a political and become fully unemployed. Artists expect and, thus, exclusionary and discriminatory economic imperative to seek alternatives that create opportunities that allow for to lose an average of $21,500 each in cre- barriers for diverse participation, and now is arts and culture ecosystems to be the foundations of social and civic life especially ativity-based income in 2020 ($50.6 billion, the moment to fundamentally re-write pur- for marginalized communities. … What we need right now is for grantmaking nationally). 78% have no post-pandemic fi- poses, policies, and practices. Our nation’s to lead in step with communities in enacting cultural restitution and reparations nancial recovery plan. BIPOC artists have arts and culture grantmaking community is through the grant-making.” higher rates of unemployment than White called to respond, and it has become clear artists due to the pandemic (69% vs. 60%) that traditional philanthropic models have —Allen Frimpong, Co-Founder, ZEAL and expect to lose a larger percentage of failed to support artists amidst our current their 2020 income (61% vs. 56%).”57 crises. Transformative change is required of the sector. But, even before the pandemic, the arts and 1 culture sector does not fully reflect the diversity of our nation’s shifting demograph- 2 ics. The sector erects high barriers to entry by those whose families do not come from 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 50 THE CASE FOR CULTURE & SOLIDARITY ECONOMY “Foundations and investors are changing terms. They want to grant and invest in a non-extractive way. They ask: How can we be in honest relationships and forgive or defer or restructure the 2. The cultural sector is actively seeking commitment? How can we share risk?”

alternatives to business-as-usual. —Kate Pool, Chordata Capital

The grantmakers, artists, and culture-bear- deep coordination between actors to make US Department of Arts and Culture, from · In 2020, Black Land and Power launched ers interviewed do not want to go “back” to real, progressive social change for racial and Repaired Nations to JACK to Cooperation Reparations Summer, with a commitment pre-pandemic ways of working. Instead, they economic justice is here. Humboldt, interest in training and study that “each Juneteenth shall mark a sum- unanimously shared calls to jump forward about the relationship between Solidarity mer of organizing and moving no strings together toward a more equitable system. The conditions are ripe. Note the plethora of Economy and arts and culture is rising. attached resources to Black land stew- Calls for racial and economic justice make efforts underway created by artists, move- ards.” Black Land and Power is a project this rapid report—and the practices that it ment organizers, local community groups, · Academics researching the Solidari- of the National Black Food Justice Alli- documents and urges grantmakers to sup- governments, nonprofits, and researchers to ty Economy in the United States are now ance (NBFJA) which is anchored by more port—both urgent and possible. From re- strengthen movements for racial and eco- beginning to work with one another, in- than 30 networks and organizations build- gional hubs such as Cooperation Jackson, nomic justice nationally and internationally: formally, and can connect to international ing aligned vision, story, collective deci- Cooperation Humboldt, and Push Buffalo, to research networks. See Appendix C for sion-making and strategy. NBFJA is a coa- frameworks such as the Restorative Econ- · Thousands of mutual aid groups—provid- more. lition of Black-led organizations advancing omy, Regenerative Economy, Just Transition, ing informal, voluntary, and reciprocal Black leadership, building Black self-de- and Degrowth, to organizations and coali- support—formed and strengthened during · Social movements and campaigns such termination, building Black institutions and tions and networks such as the US Solidar- COVID-19, teaching many people about the as the Movement for Black Lives, the Land- organizing for food sovereignty, land and 62 ity Economy Network, Democracy Collabo- power of hyper-local networks of care that back movement,61 Idle No More, the Poor justice. 60 rative, Justice Funders, SeedCommons, the are central to the Solidarity Economy. People’s Campaign, and the Climate Jus- New Economy Coalition, the US Federation of tice Alliance all call for a post-capitalist fu- · In 2020, the Hewlett Foundation an- 1 Worker Cooperatives, the Community Econ- · More arts and culture collectives, organi- ture. 2019 marked the launch of The Mas- nounced a plan to support an Economy omies Research Network, the Democracy at zations, and groups are studying Solidar- sachusetts Solidarity Economy Network, and Society Initiative with $50M over 2 Work Institute, the Intercultural Leadership ity Economies—from the rapper Noname which is the first statewide solidarity econ- the next 5 years, articulating a grant- Institute, and Common Future, a need for to a grassroots action network called The omy network in the nation. making strategy where “philanthropy must 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 51 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

2. The cultural sector is actively seeking alternatives to business-as-usual.

play an essential role in replacing [neolib- version.64 This addresses the need for in- “the development of alternative econom- in Asia, the Middle East, Africa, and Lat- eralism]: supporting the relevant actors; creased local jobs as well as the needs of ic systems that are more just, sustainable, in America were supported to build rela- helping forge them into an intellectu- business owners who want to retire. Almost and sustaining for artists and all those who tionships. To develop relationships of al movement; funding the development, half of all business owners are 55 years of share their “gig” worker conditions of low peer-support, each organization was translation, and transmission of new ideas.” age or older; baby boomer retirements will and unpredictable income, few assets, high given $60,000 per year over five years In May 2019, Hewlett and the Omidyar cause more than $10 trillion in business debt, and little credit.”68 and the network was given $1,200,000 Network hosted a funder gathering that assets to change hands over the next 5–20 to use collectively over five years. The convened “25 foundation heads, high net- years as an estimated 70% of privately held · ArtPlace determined that the final two groups “are focused on collective gover- worth individuals, and substantive leads businesses will be sold or closed.65 years of their time-limited initiative (ten nance” and “unlearning capital- and pro- from 18 organizations… funders have be- years) should be spent facilitating local As- ductivity-driven working methods is cen- gun collaborating together on projects of · In 2019, the New York City Council dedi- semblies in five regions where groups of tral to the way the network thinks but also mutual interest, including a $9 million, cated $850,000 to CLT education, orga- artists, organizers, community developers, lives, were supported to develop relation- two-year Anti-Monopoly Fund; a Green nizing, and technical assistance through funders, took community-control over ships with.”70 New Deal table of stakeholders; and an ini- the Community Land Trust discretionary decisions about how to use a pool of tiative to establish a network of academic funding initiative.66 The National Housing funds provided by ArtPlace ranging from · Across sectors—from craft to music to centers at various universities.”63 Trust Fund, established in 2008, saw its $1.45M million to $4.5M. In Philadelphia, theater to visual art to new media to cul- first state allocations in 2016 totaling over this process led to the development of a ture—creative people are organizing col- · In December of 2020, Mayor de Blasio $170 million dollars.67 cooperative.69 lectively and cooperatively to build power 1 launched Employee Ownership NYC, the and contest precarious working conditions nation’s largest municipal initiative for · In 2019, The Center for Cultural Innova- · The ArtsCollaboratory, an ecosystem of and online platform monopolies. For exam- 2 education and technical assistance tion launched AmbitioUS, a time-limited twenty-four like-minded arts and cul- ple, Google workers across the world have around employee ownership and con- (7–10 years), national program to support ture organizations situated predominantly formed a global union alliance called Alpha 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 52 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

2. The cultural sector is actively seeking alternatives to business-as-usual.

Global, composed of 13 unions with work- versity are collaborating on online cours- ers in 10 countries, including the United es called Platform Cooperatives Now. The States, United Kingdom, and Switzerland. larger initiative of the ICDE, the Platform The Union of Musicians and Allied Workers Cooperative Consortium, which started in launched a campaign to make Spotify sup- the United States in 2017, now has sister port artists.71 organizations in Japan, Hong Kong, Swe- “What would Black-, Brown-, and Indigenous-led cultural den, Australia, Germany, and Italy. In 2018, organizations look like if funders asked ourselves, What · NDN Collective created a $10M COVID-19 Google.org gave $1M to this effort. does it take for true transformation to happen? Response Project to quickly provide grants, communication, and strategic · In 2019, the Candide Group launched the What does it mean if the focal point of our funding was less support to Tribal Nations, front line In- Olamina Fund, which is currently at $40M, about a project, and more about freedom and liberation? digenous-led organizations, and individu- to address the historic lack of access to How do we understand history and the lack of funding that als who are providing essential services to capital in Black and Native communities.74 our communities have gotten, and how do we make up for Indigenous communities in North Ameri- that?” ca. NDN also put out $3.5M in mutual aid, · In 2020, the Mellon Foundation added sys- which moved money faster to Indigenous tems-change to their strategic approach —Leticia Peguero, communities than the Coronavirus Aid, Re- and began, among many bold new initia- Nathan Cummings Foundation lief, and Economic Security (CARES) Act.72 tives, the Monuments Project, a five-year, 1 $250M effort to reimagine monuments · The Institute for the Cooperative Digi- and “recalibrate the assumed center of our 2 tal Economy (ICDE) at The New School, national narratives to include those who Mondragon Co-op, the world’s largest have often been denied historical recogni- 3 worker co-op, and MTA-Mondragon Uni- tion.”75

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 53 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

3. Racial justice requires economic justice. “Going back to normal” will not result in equity.

Racial justice in grantmaking requires a cial capitalism.80 Neoliberalism, an economic lasting efforts from grantmakers. Consider transformation of the allocation of resources, philosophy which entails a belief that private that roughly 40% of Native people gain in- both monetary and nonmonetary. 2020 has markets will solve all problems and a corre- come from arts and culture based practices, been a year of reckoning and political unrest. sponding defunding of state and public sec- and yet foundations give less than ½ of 1 per- Neither the cultural economy nor the larger tor services, has likewise eviscerated public cent to Native artists.83 The Hewlett Foun- economy are working for most people and arts funding.81 At the same time, the loose dation announced the Economy and Society racial and economic injustice are no longer credit economic policies of neoliberals, os- Initiative with $50M over the next 5 years, being tolerated silently in the cultural sec- tensibly offered to offset financial crises, have articulating a grantmaking strategy where tor. From Media Reparations,76 to No Going bolstered various stock indices to unheard of “philanthropy must play an essential role in Back,77 to We See You White American The- heights, thus providing foundations and oth- replacing [neoliberalism]: supporting the rele- “Imagine if the Metropolitan Opera had ater,78 to musicians launching a campaign er endowed private entities incredible access vant actors; helping forge them into an intel- to pay for itself! It would never exist. against Spotify,79 to protests about the in- to funds.82 lectual movement; funding the development, Somehow there is this expectation—as we vestment practices of Museum trustees and translation, and transmission of new ideas.”84 get to the grassroots—that suddenly these Museum staff protests, the sector is being What is the role of grantmaking in shaping What will be the role of culture, community projects are supposed to fund themselves. called to respond to inequity and to take bold an equitable economic system? How can ownership, and democratic governance in There has to be a way to intentionally set action to advance cultural equity with urgen- grantmakers best follow and support com- this initiative? There is ample opportunity for aside funds for grassroots, cooperative arts cy. munity-led initiatives rather than leading or grantmakers to support narrative shift, cul- development.” directing them? Just as neoliberalism was ture, and Solidarity Economy initiatives. 1 Grantmakers are starting to conduct a careful developed with support from grantmakers —Reg Flowers, Artist, Educator, Activist analysis of the systems that produce ongoing who funded research centers, think tanks, 2 crises, including the role of neoliberal eco- and the efforts of lobbyists, achieving economic governance and its marshalling of ra- nomic justice will require coordinated and 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 54 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

3. Racial justice requires economic justice. “A big part of the normalization of White “Going back to normal” will not result in equity. supremacy is a cultural machine. If we want to look at racial equity and social justice, we have to look at who is producing culture, Racial capitalism describes the ways in what resources do they have, what messages which the policies and practices of private and narratives are they creating, in general. ownership have reinforced anti-Black racism And then in particular, if you look at groups and Indigenous genocide for centuries. Capi- that are really feeling the effects of erasure, talism operates with and through the catego- defending and standing up for the importance ry of race and has since the very beginning; “If we want a culture that creates an of particular cultural expressions is a justice the historical roots of capitalism require ra- abundance for all communities, you and a human rights issue.” cialized peoples. cannot do that in a plantation economy on stolen land. The only way to shift —Noémi Giszpenc, Executive Director, Critical Race Studies scholar George Lipsitz the economy is to shift culture and core Cooperative Development Institute explains that “conscious and deliberate ac- values.” tions have institutionalized group identity in the United States, not just through the —Anasa Troutman, Cultural Strategist dissemination of cultural stories but also through systematic efforts from colonial times to the present to create a possessive investment in Whiteness for European Amer- icans.”85 To undo the centuries of disinvest- 1 ment in BIPOC cultural stories and produc- tions, and racist practices that have excluded 2 BIPOC artists from the sector, grantmakers must address systemic racism and coordi- 3 nate efforts across policy, finance, education, and culture. 4

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 55 THE CASE FOR CULTURE “It can be pretty daunting to enter [Solidarity Economy work] and feel like & SOLIDARITY ECONOMY you can have instant mastery. I would encourage folks to stay curious, to recognize that this work is happening across the country. In fact, the new economy is already here—whether or not we choose to see it is 4. The economic system we want for cultural another story. … I invite folks to check out this work and get involved.”

equity is not only possible—it already exists. —Dana Kawaoka-Chen, Co-Director, Justice Funders86

Many actors in the neoliberal era, including Liberation.87 For this reason, in many parts of INTERNATIONAL EVIDENCE FOR THIS erative Management, Governance, or Lead- some progressive ones, often succumb to the world, these entities are actively sup- WORK ership within the local university which in the belief that there is no alternative to the ported under one umbrella: the Solidarity turn pays student-researchers to work on status quo. And yet, there are robust, grow- Economy. At the moment, the Solidarity Economy (SE) emerging Solidarity Economy initiatives, ing movements and models in the United remains relatively unknown and under-re- including those for artists and culture-bear- States and internationally that show us that The Solidarity Economy is a term used in- sourced in the United States even though ers internationally.94 not only are there alternatives, but they have ternationally to describe sustainable and scholars predict that the need for SE will significantly better outcomes along many equitable community-control of work, continue to expand.92 This report suggests a Mondragon, a network of cooperative busi- metrics: social, economic, and cultural. food, housing, and culture using a vari- pathway for study-to-action that our nation’s nesses in the Basque region of Spain, has ety of organizational forms.88 The Solidar- arts and culture grantmaking community can revenues of more than 12 billion euros ($14.5 While mutual aid networks, time banks, com- ity Economy principles include cooperation, take to propel racial and economic justice billion)95 and allocates 10 percent of profits munity land trusts, worker-cooperatives, participatory democracy, intersectional eq- forward. Consider the following examples of toward arts and culture.96 In Brazil, the city community gardens, investment cooper- uity, sustainability, and pluralism.89 Dynam- Solidarity Economy initiatives and their im- of Maricá provides a basic income to all res- atives, community currencies, and credit ic collaborations between grantmakers, pact on the social and fiscal health of com- idents as well as no-interest loans to entre- unions might seem like disparate and unre- government agencies, and federations of munities internationally. Arctic Co-operatives preneurs in a local digital currency that all lated entities, they often rely upon one an- cooperatives have produced thriving Sol- Limited, an Inuit, Metis, and First Nations arts city workers’ salaries are paid in. The currency other as interdependent parts of an eco- idarity Economy ecosystems around the and crafts producer cooperative, employs is backed by the state and is overseen in part nomic justice ecosystem. These entities all world90 with tailored tools of support, finan- 1,000 people who were paid $32.5 million by the National Secretary of Solidarity Econ- 1 emphasize community ownership and com- cial vehicles, and policy platforms.91 in wages and benefits in 2017.93 The Co-op omy.97 In France, “solidarity-based enterprise” munity governance for political, cultural, and shares some of its surplus with a consortium accreditation began in 2001 to measure the 2 economic power—what Nwamaka Agbo artic- that funds the Center for Cooperative Enter- impact of the Solidarity Economy sector, and ulates as a Restorative Economics Theory of prise. The Center offers certificates in Coop- France has created solidarity-based finan- 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 56 THE CASE FOR CULTURE “The question is not: How do I run the same fellowship program & SOLIDARITY ECONOMY with different people? Or, how do I make the same selection process more equitable, but still in an inequitable system? The question is: How do I support whole communities doing systems- 4. The economic system we want for cultural change work? ”

equity is not only possible—it already exists. —Laura Zabel, Springboard for the Arts

cial mechanisms and employee savings op- upon gender102 and race103 as cooperative the constant onslaught of White supremacy tions for twenty years.98 In Quebec, Fiducie businesses and networks are built to “ad- and anti-Black racism.107 The Black-led vi- du Chantier de l’économie sociale, started dress social exclusion with the simultaneous sion and practice of farm co-ops, coopera- in 2007, offers financial products to support provision of products or services needed by tive marketing boards, consumer coopera- social economy enterprises at each stage society.”104 The impact of Solidarity Econo- tive grocery stores, cooperative schools, and “None of this matters in a lasting way unless of their development, including investing my institutions and networks in the United credit unions in the South informed the In- there is an economic engine. You can give to us over $7.4 million in arts and culture over States—even with extremely limited support ternational Cooperative Alliance’s108 definition forever but until we own our own theaters we the past ten years.99 These cases suggest in comparison to other countries globally105— of the cooperative, as “an autonomous asso- will keep asking for rent money. Help artists that the intentional collaboration between makes it an ideal area for deliberate cultiva- ciation of persons united voluntarily to meet build their businesses and own their properties. policymakers, nonprofits, and federations of tion now.106 their common economic, social, and cul- Co-ops and Solidarity Economy entities are Solidarity Economy institutions and networks tural needs and aspirations through a joint- useful because community ownership is at the can create innovative and tailored support It is no coincidence that artists and cul- ly-owned and democratically-controlled en- center. Community assets can then be leveraged mechanisms for this sector, producing lasting ture-bearers today say that racial justice is terprise.”109 As Dr. Jessica Gordon Nembhard for whatever comes up. This is coupled with changes that advance racial and economic economic justice. BIPOC communities have reminds us, the history of BIPOC innova- a critique of philanthropy since people are justice.100 survived in the United States by creating and tion in the cooperative movement has been becoming more aware of racialized capitalism supporting mutual aid networks, coopera- erased and ignored and must be supported and realize that grantmaking practice must IMPACT tives, credit unions, and have been creating and lifted up so that we can learn from the change.” community-controlled systems for centuries. past in the ongoing struggle for racial and 1 The Solidarity Economy supports the gen- For example, African Americans innovated economic justice. —Esteban Kelly, Executive Director, eral needs of the working poor, including the cooperative model in the United States US Federation of Worker Cooperatives 2 artists and culture-bearers who continuous- as an economic development strategy of po- ly face unemployment101 wage gaps based litical empowerment and a bulwark against 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 57 THE CASE FOR CULTURE “One of the questions that people ask us is, “Do you think this is & SOLIDARITY ECONOMY going to create new business models for journalism or do you think journalism will be more sustainable?” I say, “This is going to create a new economic reality so all of the models will be different.” 5. Artists and culture-bearers are central to —Alicia Bell, Organizing Manager, the Solidarity Economy.

At this moment in the cultural sector, a wide · Culture-making and political organizing go education, training, and technical assistance, range of networks and institutions for racial hand-in-hand. is interested in the intersection of culture and and economic justice are being co-created cooperatives because the labor of art and As you read this, members of the East Bay by BIPOC artists and culture-bearers with culture cannot be offshored. Giszpenc said, Permanent Real Estate Cooperative in Oak- deep roots in their communities. Why do cul- “When we do economic development and land and members of the Cooperative Com- ture and economic innovation go together? ask ‘How do we develop a local economy?’ munity of New West Jackson are making land Our interviewees suggested that this is be- it makes sense to do something that is and housing permanently affordable. Inves- cause: deeply rooted locally. When you think about tors are gathering at the Boston Ujima Proj- the US economy and what other countries ect and at Seed Commons across the nation Many of these “innovations” of economic look to us for, cultural exports are a big deal. · to channel funding to marginalized com- justice are longstanding cultural traditions. People watch our movies, listen to our mu- munities. Culture-bearers at Sipp Culture in sic, we still have a lot of cultural influence · Artists and culture-bearers want a world Mississippi, Historic Clayborn Temple in Mem- (for good and bad). When you really look at where everyone’s needs are met so every- phis, and Double Edge Theatre in Northamp- “Culture brings JOY into the work of the racial equity, any kind of marginalized group, one can participate in the remaking of cul- ton are placing community ownership and Solidarity Economy. The spaces where and the process of marginalization, a big part ture and society. reparations at the center of their performing there is no inclusion of culture are boring of that is cultural marginalization. … and arts arts work. Culture and cooperative enterprise and hard and not generative. This helps · The arts sector has a superstar system and culture cooperatives take every form: push back against racism, gentrification, and me prioritize resourcing culture and to get where the winners take all and the rest are worker co-op, producer co-op, multi-stake- violence to imagine and enact a future of BI- other people to bring it in. It creates more 1 left with crumbs. holder co-op.” POC brilliance, safety, and joy. possibility.” · Just like art, housing and dignified work are 2 human rights. Noémi Giszpenc, the Executive Director of —Kate Poole, Chordata Capital the Cooperative Development Institute, the 3 · Artists are the original gig workers. Northeast’s center for cooperative business

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 58 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

BOSTON UJIMA PROJECT

The first democratically managed invest- exchange time rather than money and to ex- “We must create the air we are walking in, ment fund in the country places BIPOC arts pand notions of community wealth. positively impacting what is considered normal and cultural organizing at the heart of its and possible. A cultural shift… Imagination is work. In 2018, after years of conversation Since the launch of the Ujima Project, the an essential piece of our effort to build the new and organizing work, the Boston Ujima Proj- organization has put forth a number of cul- world. Cultural workers are economy builders. ect launched the Ujima Fund, a democratic tural offerings. Artists are listed as Economy With that understanding we strive to provide investment vehicle raising capital to finance Builders on the Ujima website, to “expand artists with a space to organize and advocate on small businesses, real estate, and infra- popular definitions” of what an artist is and behalf of themselves and their neighbors.” structure projects in Boston’s working-class can do.112 Multiple Ujima programs center arts BIPOC communities. Ujima, named for the and culture, including including the Ujima —Nia Evans, Director, Swahili word for collective work and re- Arts and Cultural Organizing Fellowship, Arts Boston Ujima Project110 sponsibility, uses a participatory budgeting and Cultural Organizing Micro Learning Pod, process in combination with traditional un- and the Black Trust: Chuck Turner Arts and derwriting to put economic development de- Lecture Series with study materials including cisions in the hands of community members. poems alongside reports.113 Black Trust is an We are building a multi-stakeholder co-op with The Ujima Fund raises capital from investors ongoing initiative to build a community space the people who made the musical and the people and institutions from across the country, Uji- for engagement and celebration around eco- whose ancestors the musical is about. Are we ma Voting Members (current and displaced nomic, political and cultural transformation. going to be the first cooperative owned theater 1 working-class Boston residents, grassroots The events feature a unique combination of company? Maybe. We will definitely be the first partner organizations, community business artists/cultural organizers and leading think- one in Memphis. 2 owners and their employees), and Solidarity ers, authors, and organizers whose work ties Members (non-voting members).111 Ujima also to Ujima. —Anasa Troutman, Cultural Strategist 3 has a timebank which allows members to

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 59 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

JUST SEEDS UNITED STATES FEDERATION OF WORKER CO-OPS: GUILDED

Just Seeds is a worker cooperative that The United States Federation of Worker Co- ery euro handled for its members in various allows individual artists to sell their artwork operatives (USFWC) is a non-profit mem- contractual arrangements to cover manag- through a singular distribution channel. bership organization for business entities ing costs and invest in mutualized services Rather than competing with one another and founded as democratic workplaces, including (advance on payment, adapted insurances, hiring their own distributor, bookkeeper, and worker cooperatives, nonprofit collectives, training, co-working space, tailor-made ad- marketing firm, the artists banded together. and volunteer collectives. In 2020, USF- vice, and workshops).”114 The collective pow- Over the past twenty two years, they have WC started Guilded, an initiative to establish er that Smart holds enabled the cooperative grown from a DIY project to an interna- and launch a worker-owned freelance co- to create a 5 million euro recovery stimulus tional collective. Just Seeds also offers operative with an emphasis on artists and package for members in response to can- some graphics to social movement organiz- culture-bearers. Guilded is modeled upon celled activities as well as a 0% internal credit ers for free via creative commons sharealike Smart, a cooperative of freelancers that was system with support from public authorities. licenses. founded in 1998 in Belgium to support cre- As more workers experience precarious labor ative workers in and is now operating in 9 conditions, cooperatives are gaining popular- European countries and currently counts ity as an equitable model for labor organiza- “More people are starting to see the value 35,000 members well beyond the creative tion and protection.115 of the particular culture of grassroots art- sector. Smart takes charge of all the admin- ists. For those of us working at the grass- istrative, financial, and accounting aspects roots, this is our everyday. Innovating linked to work, while enabling freelancers 1 on the fly? Of course. As adrienne maree to become salaried workers in the coopera- brown says, we are building the plane in tive. To do this, “other than a yearly 30 euro 2 flight.” share, the cooperative gets a fair and fixed percentage (that varies by country) on ev- 3 —Reg Flowers, Artist, Activist, Educator

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 60 THE CASE FOR CULTURE “Be prepared to embrace complexity and not & SOLIDARITY ECONOMY necessarily understand the complexity of the work. Funders are “supposed” to know everything, but they rarely ever do. It’s not good or DOUBLE EDGE THEATRE + OHKETEAU EKVN-YEFOLECV MASKOKE bad, it just is, it’s based on proximity. They are often not in proximity to the community where INDIGENOUS CULTURAL CENTER ECOVILLAGE solutions are being created. I want them to understand that they are human and they don’t need to know everything. White supremacist / gentine fight for freedom against the military Language and music are at the center of ef- My students say, “How do you make a heteropatriarchy / capitalism has told them that dictatorship from 1976 to 1982. Conversations forts to rebuild cultural lifeways. For exam- living?” I say, “No I make a life.” they need to know everything and have control between Stacy Klein, Carlos Uriona, Rhonda ple, Ekvn-Yefolecv, co-founded by musician over everything and that is just not true.” Anderson (Inupiac Athabaskan), and Nipmuc Marcus Briggs-Cloud (Maskoke), is an inten- —Carlos Uriona, Co-Artistic Director, cultural educator Larry Spotted Crow Mann tional ecovillage and community of Indige- Double Edge Theatre —Anasa Troutman over several years led to the recent opening nous Maskoke persons. 180 years after being of the Ohketeau Indigenous Cultural Center, forcibly removed from traditional homelands an autonomous center for Indigenous culture in 1836—in what is colonially known as Ala- digenous communities and non-Indigenous Double Edge Theatre, located on occupied which is adjacent to Double Edge Theatre.116 bama—a group of 16 full-time residents and communities alike to manifest similar models Nipmuc territory in rural Ashfield, Massachu- Ohketeau is a space for community that cen- 42 transient members returned in 2018 for in their own culturally responsive ways. This setts, is a space that aims to create “art” and ters Nipmuc teachings, where cultural cre- the purpose of practicing linguistic, cultur- bold work is funded by the Chorus Founda- “living culture” that centers shared resourc- ation and local economic development can- al, and ecological sustainability. Designed tion—among many other foundations—which es. Double Edge is many things: a base for a not be separated because, as Larry Spotted as a “holistic decolonization paradigm shift,” supports “communities on the front lines theater ensemble; a farm which offers food Crow Mann notes, “all life started on the back residents of the ecovillage are creating an of the old, extractive economy to build new to community members; a site for interna- of a Turtle—the Turtle is the symbol of Cre- off-of-the-grid income-sharing community bases of political, economic, and cultural tional convenings including Art and Survival, ators’ wisdom, patience, and longevity—so let with natural building construction, renewable power for systemic change.” This mission in- which centers Solidarity Economy practice us align ourselves with that creative power energy, and language immersion. Tawana cludes systems-change in grantmaking and and research; a place for training of theater and spirit of Turtle and see what we can cre- Little (Maskoke) says that the group has “to is key to a path for economic justice in the 1 and artisan practices; and a center which in- ate together.”117 The collaboration between distinguish the difference between the im- United States. Grantmakers are beginning to cludes affordable housing and sustainable the Ohketeau Council and Double Edge The- position of poverty as a byproduct of colonial follow the lead of Indigenous culture-bearers 2 environmental practices in the area. The local atre represents a practice of acknowledge- oppression, and intentionally choosing to live who are shifting the landscape and the arts community economic development work of ment, repair, and reparations that inspires a simple and healthy lifestyle wherein we ar- and culture sector in the 21st century. Arts 3 Double Edge Theatre has been ongoing for cultural workers and grantmakers to take en’t chasing the capitalist dream because and culture are at the center of the work of almost forty years and is informed by Carlos action on unceded territory. As Indigenous that goal is inherently incompatible with building the Solidarity Economy. 4 Uriona, Co-Artistic Director, who organized scholar Eve Tuck reminds us, decolonization ecological sustainability and our indige- groups of artist cooperatives as part of the is not a metaphor, it is an action and practice neity altogether.”119 Ekvn-Yefolecv seeks to 5 118 national cultural resistance during the Ar- of reparations. serve as a replicableCulture &archetype Solidarity for Economy other In- | Solidarity Not Charity: A Rapid Report | 61 THE CASE FOR CULTURE “We must fund the convening and institution-building that creates & SOLIDARITY ECONOMY the terrain that we are fighting on.”

—Julia Beatty, Borealis Philanthropy 6. Grantmakers are poised to strengthen and grow the Solidarity Economy.

With over $890B, the assets of philan- pact by funding cooperatives, land trusts, were accumulated and how they might be of peer-driven, ecosystem-oriented finance thropic foundations in the United States mutual aid networks, and other entities that used in alignment with a strategy for sys- are emerging to make these types of equity, are the highest in the world—eight times center economic and racial justice because tems-change. See Action Checklist on page infrastructure, and relationship-building pos- that of the country with the second largest 13 for more. sible. At the heart of this work is solid peer philanthropic holdings of global assets.122 And (1) philanthropy excels at building and governance and committed, deep relation- yet, philanthropic foundations in the Unit- supporting infrastructure and institu- Artists and culture-bearers need more ships, built over years and across sectors and ed States have among the lowest average tions,124 equity ownership of their own assets movements. See Action Checklist on page 13 “expenditure rate”—the percentage of as- (land, buildings, equipment) in order to en- for more. sets deployed for charitable purposes—often (2) the main barrier for many of these Soli- sure greater stability amid crisis, to enable only giving the legal minimum of 5 percent. darity Economy entities is deliberate incu- long-term planning, and to provide time for “The COVID crisis has mobilized Havard’s recent Global Philanthropy Report bation125 and start-up capital,126 experimental work. The arts and culture sec- musicians to begin organizing. People noted that foundations in the three Latin tor requires shared infrastructure so that the are now understanding themselves more American countries studied averaged an ex- (3) funders are seeking to learn about sector can develop peer-reliant ecosystems. as workers, and seeing that things are so penditure rate of 13 percent of assets; among ways to support cooperative business Places like Double Edge Theatre, Sol Col- bad that they are not going to hussle their the nine European countries studied, the rate structures,127 and lective, and the Caribbean Cultural Center way out of it as individuals. ... This is a is 12 percent, and is notably high in Spain (37 are navigating the pandemic with integrity, way to maintain community during the percent), France (34 percent) and Germany (4) artists and culture-bearers are leading relationality, and community-respect pre- crisis and beyond.” (24 percent).123 There is no shortage of fund- this work.128 cisely because they have equity ownership 1 ing available for philanthropic foundations to and shared infrastructure. The relationships —Joey DeFrancesco, deploy. In order to do this work in a transformative these culture-bearers and artists are able to Historian and Organizer, 2 manner, grantmakers must conduct a pow- build with their neighbors builds democra- Union for Musicians and Allied Workers Our nation’s arts and culture grantmaking er analysis to consider how the $890B in cy and creates room for mutual support in 3 community is poised to make a lasting im- philanthropic assets in the United States the face of devastation and loss. New types

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 62 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

6. Grantmakers are poised to strengthen and grow the Solidarity Economy.

In this moment of crisis and uncertainty, ing instead of profit for external shareholders Seed Commons acts as a partner with small- while interest rates at SeedCommons is only grantmakers can make a “big bet” on the and are underexplored in the United States. er funds, networks, and cooperative busi- due if and when the business is profitable power of Solidarity Economy practices and nesses, working out flexible but economically and even then top out at 2–8%. This means institutions that artists and culture-bearers THREE EXAMPLES OF prudent loan terms with none of the draco- for SeedCommons loans, “no greater return are building. The December 2020 Americans nian penalties of conventional finance (such than the wealth generated is ever taken, even for the Arts’ COVID-19’s Impact on The Arts SOLIDARITY ECONOMY as seizure of collateral). It is a community if that is a negative return.”134 SeedCommons Research & Tracking Update states that the SUPPORT wealth cooperative that takes in investment is part of a growing movement for commu- top three needs for artists are: (1) unem- as a single fund and then shares that capital nity-controlled finance, including the Boston ployment insurance, (2) food/housing as- CONCESSIONAL LOANS for local deployment by and for communities, Impact Initiative, The Working World, Runway, sistance, (3) forgivable business loans.129 lowering risk while increasing impact. Co-Di- the Boston Ujima Project, ZebrasUnite, and This is what all people need, and what artists As unemployment soars and more and more rector Brendan Martin says that, “each dollar the Cooperative Fund of New England.135 The need. According to the Brookings Institute, small businesses—including artists and cul- invested in SeedCommons has generated Working World, which is the oldest coopera- creative workers are experiencing historic ture-bearers—turn to predatory lenders to more than $5 in revenues for communi- tive and non-extractive Venture Capital firm precarity.130 What can be done? Forgivable cover their basic needs, concessional loans ties, meaning a $1M investment can result in the United States, was started by artists loans, affordable housing, and dignified must be explored. These loans have terms in over $5M in income through to commu- and was inspired by a film.136 jobs—when structured as solidarity-based, that aim to achieve community-benefit by nities SeedCommons places capital in.”132 cooperative institutions and networks— offering terms such as low interest rates and SeedCommons offers concessional loans have been shown to withstand crises be- grace period and approaches including for- for Solidarity Economy institutions and net- 1 cause they are built with self-determina- givable interest and zero collateral loans. works. Interest rates for small business loans tion and community-response from the For example, SeedCommons collects do- at banks and online lenders today range from 2 outset.131 These entities emphasize self-help, nations and then uses them as a collective 6–71%,133 with the risk of losing the business dignified livelihoods, and community wellbe- pool to offer loans well below market rate. if the strict payment schedule can’t be met, 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 63 THE CASE FOR CULTURE “It’s not just about money. If foundations want to fight against gentrification—if they & SOLIDARITY ECONOMY want to keep BIPOC cultural memories alive—foundations need to mobilize quickly. Grantmakers have to put property in the hands of community members who will own it forever. It’s not just about funders owning it and half-way giving community 6. Grantmakers are poised to strengthen and ownership either.” —abdiel lópez, Program Officer, grow the Solidarity Economy. AmbitioUS, Center for Cultural Innovation

The Center for Cultural Innovation’s Ambi- be strong keystones of emerging infrastruc- age.141 Grantmakers can play a role in expand- tioUS program provided SeedCommons with ture.”140 Arts and culture foundations can ing lending products and terms and invest grant funding and a loan guaranteed for their support institutions like SeedCommons in directly in CDFIs.142 Since 2007/2008, credit Grant & Loan Fund for Early-Stage Arts, Cre- their investment portfolio, in their grant port- union mortgage originations have increased ative, and Cultural Cooperatives. This inte- folio, and through partnerships whereby the 70 percent (while bank mortgage origina- SeedCommons 2–8% flexible schedule, forgivable, grated-capital support connected artists to foundation partners with these groups to tions have continued to decline) and small interest rate forgivable137 no collateral, paid only if an important Solidarity-Economy service offer technical support to their grantees. At business lending growth has dramatically their business succeeds.138 provider and lowered the risk of SeedCom- a moment when foundations have to make outpaced that of banks.143 The success of the mons’s support of artists’ cooperative start- hard decisions about which entities to sup- Solidarity Economy (SE) sector depends upon ups. In addition, CCI contracted with Uptima port, SeedCommons has a demonstrated flexible financial vehicles because these enti- Entrepreneur Cooperative to provide busi- impact of five times for every dollar ties often have thin margins, prioritizing low- Bank and FinTech 6–71%139 strict schedule, not- ness support to the grantees and technical invested. cost, affordable goods and services and living interest rate forgivable, require collateral, paid regardless of their suc- assistance to borrowers to ensure that they wages for workers. Worker cooperatives, for cess and risks losing their succeed in their cooperative businesses This work has its roots in rural, poor, immi- example, while being more likely to succeed business or other collateral. and pay back the loans. As Angie Kim of CCI grant, and BIPOC survival strategies, includ- than conventional enterprises,144 are often explained, “because the Solidarity Economy ing susus, rotating loan funds and mutual slower to become self-sustaining. Further, is at such a nascent stage of development, aid, and in the movement for Community the movement for non-extractive finance this program was designed to encourage Development Financial Institutions (CDFIs). At holds the principles of participatory democ- 1 artists’ cooperatives, add bench strength least 60% of CDFI financing activities serve racy, intersectional equity, sustainability, and to the arts field by bringing in leading ser- one or more low- and moderate-income pluralism.145 Further, SE entities internation- 2 vice providers, and also give these providers populations or underserved communities, ally have demonstrated that they are more capital to grow so that they can continue to and CDFIs regularly exceed that percent- likely to repay loans than traditional firms.146 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 64 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

6. Grantmakers are poised to strengthen and grow the Solidarity Economy.

AFFORDABLE SPACE Brewster Kahle, the founder of the Internet For example, a typical dancer/choreographer, As Ford, Hewlett, MacArthur, Open Society, Archive, said, “our biggest expense is peo- who makes $31,200, the annual average and Packard shift their grantmaking prac- Both affordable space and housing assis- ple; our employees’ salaries make up about earnings for their field before COVID-19 hit,153 tices to underscore the importance of gen- tance are a perennial need for the arts and 80% of the budget. The biggest cost to our will only have to spend 6 hours a week to eral operating support for grantees,157 arts culture sector. When grantmakers support employees is housing, and the biggest cost cover their housing costs in a communi- ecosystem-wide support for permanently community-controlled, permanently af- of housing is debt service. If we could find ty land trust, compared to the 28 hours a affordable housing and commercial space fordable space—both commercial space a way to transition housing over a course of week it would take to cover a market-rate should be explored. The community land and residential—they create long-term decades from being debt burdened to debt rental in the same area. See APPENDIX E for trust model is being used to support space efficiencies in their giving practices as free, we could create a housing class that more. for artists and arts organizations in the East grantees who benefit are no longer spend- would be of enduring value to people in the Bay Permanent Real Estate Cooperative to- ing large portions of their organizational nonprofit sector.”151 Artists and culture-bear- day and is a solution to housing insecurity.158 147 overhead on rent or extractive finance. ers across the country are innovating models Cooper Square $360/month154 A typical danc- In the 2007/2008 crisis, homeowners living In 25 cultural districts nationally, artists and for community land trusts: community-based CLT average er would have to in Community Land Trusts were 10 times less maintenance spend 6 hours those working in the arts field are rent-bur- organizations that create affordable housing likely to be in foreclosure proceedings and per week working dened, with 30% to 50% of their income go- and commercial space in perpetuity by own- to cover housing 6.6 times less likely to be at least 90 days de- ing to cover rent.148 This need not be the case. ing land and leasing it to community mem- costs. linquent, compared with homeowners in the For example, in 2019, the average month- bers who use spaces on that land. Artists liv- conventional market.159 The community land Market-rate ly rent within a .5 mile radius of Fourth Arts ing in cultural districts pay over 60% of their $1850/month A typical danc- trust model is one of many Solidarity Econ- rent in the (artists share an er would have to 1 152 Block in the Lower East Side of New York income on rent, so investing in community area avg. 1BR $4,660/ spend 28 hours omy models which are both resilient in crisis City was $4,660 per month149 while the aver- land trusts allows grantmakers to ensure that month rental155) per week working and are championed by BIPOC artists and 2 to cover housing age monthly maintenance fee in the Cooper their grants go to artistic production and af- costs.156 culture-bearers today. Square Community Land Trust in the same fordable overhead that will support artists re- 3 neighborhood was $240–480.150 maining in their communities for generations.

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 65 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

6. Grantmakers are poised to strengthen and grow the Solidarity Economy.

DIGNIFIED WORK (10% failure versus 60–80%) and after 5 years operatives in the United States found that Cooperative Business 90% in business (90% still operating versus 3–5% 58.8% of people employed at worker co-ops success rate after 5 years176 Artists and culture-bearers are increasing- of traditional businesses).164 Evidence shows identify as people color and 62.5% of work- ly turning to worker and producer coopera- that worker and producer cooperatives both ers identify as female and 1.7% identify as tives—businesses that are owned and man- successfully address the effects of crises and non-binary.170 Worker cooperatives provide Traditional Corporation 3-5% success rate after 5 aged by the workers—because they provide survive crises better.165 a pathway for more diverse and equitable years job security and a meaningful work environ- working arrangements because these ar- ment.160 Evidence shows that cooperatives Worker cooperatives also provide better and rangements are determined by the workers are more efficient than traditional firms161 and more equitable wages. In worker co-ops, the themselves. Currently, Latinx women earn 55 have fewer layoffs during economic crises average ratio between the highest and low- cents for every dollar that White men make,171 because they are able to call upon their com- est pay is 2:1 compared with 300:1 in large Black women earn 63 cents for every dol- munity for support, and workers can decide corporations.166 In 2019, the US Federation of lar that White men make in the workforce,172 “Artists were some of the first workers to adjust the hours worked by all employees Worker Cooperatives reported that the av- and women artists of any race earn 77 cents to feel the most pain because of this rather than reducing the number of employ- erage entry-level wage paid at all reporting for every dollar that male artists of any race economy and will be the first ones to ees.162 Cooperatives are more likely to suc- worker cooperatives was $19.67 per hour. earn.173 As is often cited, providing equal pay help lead us out of it.” ceed than traditional corporations because This figure is more than $7.00 higher than the to women in the workforce would cut the they are developed intentionally in dialogue minimum wage in the 13 states with the most poverty rate for all working women in half and —Franscico Pérez, with their customers and with the communi- worker co-ops.167 Further, cooperatives ad- the number of children with working mothers Director, Center for Popular Economics 1 ty.163 Cooperative businesses have six times vance gender equity at work.168 Worker coop- living in poverty would be nearly cut in half.174 lower failure rates than traditional corpo- eratives today employ more women and pay Cooperatives offer a promising model for 2 rations and small businesses—60–80% of women at better wages than conventional economic justice when cultivated with inten- cooperatives are running after the first year businesses.169 A recent survey of worker-co- tionality.175 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 66 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

6. Grantmakers are poised to strengthen and grow the Solidarity Economy.

Scholars predict that the desire for coopera- to shared leadership.181 The United Nations’ intersectional collaboration and partnership arts and culture intersect with the Solidarity tives will continue to increase due to demo- International Labor Organization reports that across social identity, and (3) call in decades Economy and to encourage bold action. A fu- graphic, cultural, and technological shifts in “The importance of the Social and Solidarity of wisdom, practice, and innovation in grant- ture of racial and economic justice depends the labor force.177 In December of 2020, New Economy for the future of work is not limit- making practices that advance racial and upon it. York City launched Employee Ownership ed to a residual role that only concerns more economic justice. In turn, grantmakers will NYC, the nation’s largest municipal initia- disadvantaged people but also shows a way support artists and culture-bearers as they tive for education and technical assistance in which the world of work can be trans- withstand financial crises, advance racial eq- around employee ownership and conver- formed, creating new employment based on uity, and increase community wealth. 178 sion. This addresses the need for increased competencies and skills that cannot be re- “This work, when done with integrity, takes 182 local jobs as well as the needs of business placed by algorithms.” The past decade has In order to support the Solidarity Econo- time. There is no quick way to get it done. owners who want to retire. Almost half of seen increased research and development of my with integrity, a slow process of rela- It can’t be microwaved. ROOTS has been 183 all business owners are 55 years of age cooperative digital platforms. In 2014, 1 in tionship-building between culture-bearers, at it for 40-plus years. … The results of or older; Baby Boomer retirements (peo- every 6 people on average in the world had Solidarity Economy organizers, public sec- asking and interrogating—racism, southern ple born between 1946–1964) will cause membership in a cooperative or was a cli- tor workers, and arts and culture grantmak- life, organizational structure, funding for 184 more than $10 trillion in business assets to ent of a cooperative. ers must begin. Lasting impact will not be artists, contracts, what does it mean to change hands over the next 5–20 years as made if (1) Solidarity Economy becomes partner—these questions are real. If you an estimated 70% of privately held busi- Cultivating Solidarity Economy institutions a “buzzword” that is popular for a short have only done a year of work, lean on the 179 nesses will be sold or closed. Millennials and networks will allow our nation’s arts and time or (2) if newcomers with visibility are organizations that have done the work and 1 (people born between 1981–1997) are moving culture grantmaking community to (1) con- supported instead of community-based let them lead.” into positions of power and tend to prioritize duct rapid responses to interpersonal and groups who have been doing this work 2 jobs and businesses that center equity, sus- structural crises with more clarity and trust for decades. This report exists to begin a —Carlton Turner, Sipp Culture 180 tainability, and local impact and are drawn going forward, (2) build capacities for deep process of study about the ways in which (formerly, AlternateRoots) 3

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 67 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

Endnotes

48 CCI, Creativity Connects (NEA, 2016), https://heliconcollab. December 14, 2020 https://www.americansforthearts.org/ 67 Tim Robustelli et al., “Displaced in America: Policy Rec- 80 Dana Kawaoka-Chen, “Philanthropy, This is Our ‘Matrix’ net/wp-content/uploads/2019/10/Creativity-Connects-Fi- node/103614. ommendations,” New America, Updated September 9, 2020, Moment...What Will You Choose?” Justice Funders, March nal-Report.pdf. 58Jenny R. Yang et al., Arts Workers in California (Urban Insti- https://www.newamerica.org/flhp/reports/displaced-ameri- 31, 2020, https://medium.com/justice-funders/philanthro- 49 CCI, Creativity Connects (NEA, 2016), https://heliconcollab. tute, January 19, 2021), 17, https://www.urban.org/research/ ca/policy-recommendations. py-this-is-our-matrix-moment-what-will-you-choose- net/wp-content/uploads/2019/10/Creativity-Connects-Fi- publication/arts-workers-california/view/full_report. 68“AmbitioUS: Network, Investments, Knowledge,” AmbitioUS, 283cdff53056; and Emily Kawano and Julie Matthaei, “Sys- nal-Report.pdf. 59 Jenny R. Yang et al., Arts Workers in California (Urban Insti- CCI, accessed January 15, 2020, https://ambitio-us.org/. tem Change: A Basic Primer to the Solidarity Economy,” 50 Helicon Collaborative. Not Just Money. Helicon Collabora- tute, January 19, 2021), https://www.urban.org/research/pub- 69 “2020, Closings and Openings,” ArtPlace 10 Years, ArtPlace Nonprofit Quarterly (NPQ) (July 8, 2020), https://nonprof- tive, July 2017, http://www.notjustmoney.us/docs/NotJust- lication/arts-workers-california/view/full_report. America, 2020, https://forecast-public-art.foleon.com/art- itquarterly.org/system-change-a-basic-primer-to-the-soli- Money_Full_Report_July2017.pdf. 60”Collective Care Is Our Best Weapon against COVID-19 and place/10years/2020/. darity-economy. 51 Maggie May, “Ms. Foundation: Donors Must Step Up for Other Disasters,” Mutual Aid Disaster Relief, accessed Feb- 70 Interview with Binna Choi and “What is Arts Collaboratory?,” 81 Cynthia Koch, “The Contest for American Culture: A Leader- Women and Girls of Color,” Philanthropy Women, July 6, 2020, ruary 9, 2021, https://mutualaiddisasterrelief.org/collec- Arts Collaboratory, 2016, http://www.artscollaboratory.org/ ship Case Study on The NEA and NEH Funding Crisis,” Public https://philanthropywomen.org/research/ms-foundation-do- tive-care/. about/. Talk (1998), https://www.upenn.edu/pnc/ptkoch.html; and Ar- nors-must-step-up-for-women-and-girls-of-color/. 61”NDN Collective Landback Campaign Launching on Indig- 71”Justice at Spotify,” Union of Musicians and Allied Workers, lene Dávila, Culture Works: Space, Value, and Mobility Across 52 Cheryl Dorsey, Jeff Bradach, and Peter Kim, “Racial Equi- enous Peoples’ Day 2020,” NDN Collective, October 9, 2020, accessed February 6, 2021, https://www.unionofmusicians. the Neoliberal Americas (New York: NYU Press, 2012). “Neo- ty and Philanthropy,” The Bridgespan Group, May 4, 2020, https://ndncollective.org/ndn-collective-landback-cam- org/justice-at-spotify. liberal economic logics often demand the transformation and https://www.bridgespan.org/insights/library/philanthropy/ paign-launching-on-indigenous-peoples-day-2020/. 72Michael Johnson and Gabby Strong of NDN Collective, in proper repackaging of culture for public consumption, and a disparities-nonprofit-funding-for-leaders-of-color. 62“Reparations Summer,” Reparations Summer, accessed discussion with the authors. distancing from popular classes and histories through pro- 53 Philanthropy and COVID-19 in the First Half of 2020 (Can- February 14, 2021, https://reparationssummer.com/repara- 73 “Google.org Awards $1 Million for Jobs Cooperative Con- cesses of appropriation, transformation, and mainstreaming. did and CDP, 2020), https://www.issuelab.org/resourc- tions-summer/. sortium,” PND by Candid, June 13, 2018, https://philan- The result is racial and class-based hierarchies that are not es/37232/37232.pdf; and “The Future We Want: Racial and 63 The Hewlett Foundation, Economy and Society Initiative; thropynewsdigest.org/news/google.org-awards-1-mil- only marked by the politics of representation, in terms of the Disability Justice,” Grantmakers in the Arts, October 9, 2020, Grantmaking Strategy (The Hewlett Foundation, December lion-for-jobs-cooperative-consortium. cultural content alluded to or appealed to by different cultural https://www.giarts.org/blog/eddie/future-we-want-ra- 2020), https://hewlett.org/wp-content/uploads/2020/12/ 74”Olamina Fund,” Candide Group, accessed February 7, 2021, industries, but also by the exclusion of racialized others from cial-and-disability-justice. See also Not Just Money (Helicon Economy-and-Society-Grantmaking-Strategy-12.2020.pdf. https://candidegroup.com/olamina-fund. the production, circulation, and consumption of cultural prod- Collaborative, July 2017), 7 and 11, accessed January 21, 2021, 64“Sell Your Business to the People Who Care Most,” Owner 75”The Monuments Project,” The Mellon Foundation, accessed ucts.” http://www.notjustmoney.us/docs/NotJustMoney_Full_Re- to Owners, accessed January 15, 2020, https://www.owne- February 7, 2021, https://mellon.org/initiatives/monuments/. 82”10 Months into Crisis, US Billionaires’ Wealth Continues to port_July2017.pdf. r2owners.nyc/. 76”Media Reparations,” Media 2070, accessed February 7, 2021, Climb,” Americans for Tax Fairness, January 29, 2021, https:// 54 Angie Kim, in discussion with the authors, February 2021. 65 Dorian Gregory et al., The Lending Opportunity of a Gen- https://mediareparations.org/. americansfortaxfairness.org/10-months-crisis-u-s-billion- 55 Cheryl Dorsey et al, “Overcoming the Racial Bias in Philan- eration: Worker Coop Conversion Financing FAQs and Case 77 Janelle Treibitz et al, No Going Back (The Center for Cultur- aires-wealth-continues-climb-1-1-trillion-nearly-40/. thropic Funding,” Stanford Social Innovation Review, (May Studies (Cooperative Fund of New England, Project Equity, al Power), accessed January 24, 2021, https://backend.ccp. 83 “Impact Investing and Lending,” NDN Collective, accessed 1 2020), https://ssir.org/articles/entry/overcoming_the_ra- and Democracy at Work Institute: 2016), https://project-equi- colab.coop/media/pdfs/CCP_Covid-19_3SCNaf1.pdf. February 7, 2021, https://ndncollective.org/impact-invest- cial_bias_in_philanthropic_funding. ty.org/wp-content/uploads/2019/11/LendingOpportunityOfA- 78 “We See You, White American Theater,” Accessed January ing-lending/. 56 Patricia Cohen, “A ‘Great Cultural Depression’ Looms for Le- Generation_updated-Nov-2019.pdf. 24, 2021, https://www.weseeyouwat.com/. 84 The Hewlett Foundation, Economy and Society Initiative; 2 gions of Unemployed Performers,” New York Times, December 66 Caroline Spivack, “Community Land Trusts Score Cru- 79Amelia Mason, “A New Musicians’ Union Wants Spotify To Grantmaking Strategy (The Hewlett Foundation, December 26, 2020, https://www.nytimes.com/2020/12/26/arts/unem- cial Funds in City Budget,” Curbed New York, June 18, 2019, Pay Up,” The ARTery, Updated December 16, 2020, https:// 2020), https://hewlett.org/wp-content/uploads/2020/12/ ployed-performer-theatre-arts.html. https://ny.curbed.com/2019/6/18/18682466/nyc-communi- www.wbur.org/artery/2020/11/23/musicians-union-spotify- Economy-and-Society-Grantmaking-Strategy-12.2020.pdf. 3 57 COVID-19’s Impact on The Arts Research & Tracking Update: ty-land-trusts-funding-city-budget. to-pay-up. 85 George Lipsitz, “The Possessive Investment in Whiteness,”

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 68 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

Endnotes

American Quarterly 47, no. 3 (The Johns Hopkins University the environment, on a global scale.” Samuel Barco Serrano et 100 “Work opportunities provided by the social and solidarity org/10.1362/204440815X14267607784848; and Peter Utting, Press: September 1995): 147, https://wggc.yale.edu/sites/deal, Financial Mechanisms for Innovative Social and Solidari- economy have been shown to be beneficial for specific social Public Policies for Social and Solidarity Economy; Assessing fault/files/files/lipsitz.pdf. ty Economy Ecosystems, (ILO, 2019); 5, https://www.ilo.org/ groups such as newly arrived migrants and refugees (Barra- Progress in Seven Countries (Geneva: ILO, 2017): 16, https:// 86 Dana Kawaoka-Chen and LIFT Economy, “Next Economy wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/ ket, 2014), people with physical or mental disabilities (War- www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ Now #159,” LIFT Economy, May 16, 2019, https://www.youtube. documents/publication/wcms_728367.pdf. ner & Mandiberg, 2006), homeless young people (Ferguson, ent/---coop/documents/publication/wcms_582778.pdf. com/watch?v=0czv92hwcvU. 93 “Arctic Co-operatives Limited,” Arctic Co-operatives Limit- 2016) and people with mental illnesses and addictions (Krupa, 105 Emily Kawano, in discussion with the authors. 87 “What is Restorative Economics?,” Nwamaka Agbo Consult- ed, last modified 2020, https://arctic-coop.com/. Lagarde, & Carmichael, 2003; Lysaght, Jakobsen, & Gran- 106 “Even during the years 2008–2015, when the country was ing, accessed February 7, 2021, https://www.nwamakaagbo. 94 The Chair in Co-operative Enterprises was established in haug, 2012; Lysaght et al., 2018).” Samuel Barco Serrano et experiencing a harsh economic crisis, social cooperatives com/restorative-economics. 2013 with grants from the Province of Manitoba’s Ministry of al, Financial Mechanisms for Innovative Social and Solidarity increased both their total invested capital and their equi- 88 “The Solidarity Economy,” New Economy Coalition, ac- Housing and Community Development, Red River Coopera- Economy Ecosystems, (ILO, 2019), https://www.ilo.org/wcm- ty. In fact, their growth rate in this respect was much higher cessed January 12, 2021, https://neweconomy.net/solidari- tive Limited, Federated Co-operatives Limited, Co-operators sp5/groups/public/---ed_emp/---emp_ent/---coop/docu- than that of other forms of business (Borzaga and Fontanari, ty-economy/. Canada, Credit Union Central of Manitoba and Assiniboine ments/publication/wcms_728367.pdf. 2018).” Financial Mechanisms for Innovative Social and Sol- 89 Emily Kawano and Julie Matthaei, “System Change: A Basic Credit Union. It is located in, and affiliated with the Business 101 In 2017, the artist unemployment rate hit an 11-year low. idarity Economy Ecosystems, (ILO, 2019), 65, https://www. Primer to the Solidarity Economy,” Nonprofit Quarterly, July 8, and Administration Department at the University of Winnipeg National Endowment for the Arts, Artists and Other Cultural ilo.org/global/topics/cooperatives/projects/WCMS_626176/ 2020, https://nonprofitquarterly.org/system-change-a-ba- in Manitoba. Workers: A Statistical Portrait (NEA, April 2019), https://www. lang--en/index.htm. sic-primer-to-the-solidarity-economy/. 95Peter S. Goodman, “Co-ops in Spain’s Basque Region Soft- arts.gov/sites/default/files/Artists_and_Other_Cultural_ 107Jessica Gordon Nembhard, Collective Courage (Pennsylva- 90 In Brazil, Colombia, Italy, Luxembourg, Quebec, France, en Capitalism’s Rough Edges,” New York Times, December 29, Workers.pdf. nia: The Pennsylvania State University Press, 2014). South Korea, Ecuador, Spain, Cameroon, Cape Verde, Japan, 2020, https://www.nytimes.com/2020/12/29/business/coop- 102 Women artists earn $0.77 for every dollar men artists earn. 108 Many of these Black enterprises followed the “Rochdale Indonesia, Japan, Malaysia, and Costa Rica, for example. eratives-basque-spain-economy.html. “Artists and Other Cultural Workers: A Statistical Portrait,” NEA, Principles of Cooperation,” first set out by the Rochdale Soci- Samuel Barco Serrano et al, Financial Mechanisms for Inno- 96 Susan Witt, in discussion with the authors, February 2021; accessed January 17, 2021, https://www.arts.gov/impact/re- ety of Equitable Pioneers in Rochdale, England, in 1844 and vative Social and Solidarity Economy Ecosystems, (ILO, 2019); and “The Mondragon Experiment—Corporate Cooperativism,” search/publications/artists-and-other-cultural-workers-sta- adopted by the International Cooperative Alliance in 1895. 5, https://www.ilo.org/wcmsp5/groups/public/---ed_emp/- 1980, https://vimeo.com/180391126. tistical-portrait. Researchers found an annual wage wage gap 109 “We Are Cooperatives,” International Co-operative Alliance, --emp_ent/---coop/documents/publication/wcms_728367. 97 Paul R. Katz and Leandro Ferreira, “What a Solidarity Econ- of more than $20,000 between men and women. Danielle J. accessed January 17, 2021, https://www.ica.coop/en pdf. omy Looks Like,” Boston Review, April 9, 2020, http://bos- Lindemann, Carly A. Rush, and Steven J. Tepper, “An Asym- 110”Organize,” Boston Ujima Project, accessed February 7, 91 Peter Utting, Public Policies for Social and Solidarity tonreview.net/class-inequality/paul-katz-leandro-ferre- metrical Portrait: Exploring Gendered Income Inequality in the 2021, https://www.ujimaboston.com/organize. Economy; Assessing Progress in Seven Countries (Geneva: ria-brazil-basic-income-marica; and Marcos Arruda, “What is Arts,” Social Currents 3, no. 4 (December 2016): 13, https:// 111 “Another Boston is Possible,” Boston Ujima Project, ac- ILO, 2017), https://www.ilo.org/wcmsp5/groups/public/-- a Solidarity Economy?,” TNI, June 20, 2005, https://www.tni. journals.sagepub.com/doi/10.1177/2329496516636399. cessed February 7, 2021, https://www.ujimaboston.com/. -ed_emp/---emp_ent/---coop/documents/publication/ org/es/node/6865. 103 Among men, the industries where we observe the largest 112”Organize,” Boston Ujima Project, accessed February 7, 2021, wcms_582778.pdf. 98Frédéric Fourrier, Study on ’90/10’ Funds, (Finansol, 2019), pay gaps compared to equally qualified White men are Arts, https://www.ujimaboston.com/organize. 1 92“With respect to the future of work in particular, the SSE https://www.finansol.org/_dwl/Study-On-2090-10-20Funds- Entertainment, & Recreation (Black men: $0.95 RWG). “The 113”Organize,” Boston Ujima Project, accessed February 7, 2021, has demonstrated its potential to provide solutions to peo- 20Finansol.pdf. Racial Wage Gap Persists in 2020,” PayScale, accessed Jan- https://www.ujimaboston.com/organize. ple willing to live and work decently in their communities. It 99 Peter Utting, Public Policies for Social and Solidarity Econ- uary 17, 2021, https://www.payscale.com/data/racial-wage- 114World Cooperative Monitor, Exploring the Cooperative Econ- 2 has shown its capacity to address, simultaneously and with omy; Assessing Progress in Seven Countries (Geneva: ILO, gap. omy (2020), https://monitor.coop/sites/default/files/publica- a long term view, different problems such as productivity 2017), 43, https://www.ilo.org/wcmsp5/groups/public/--- 104 Michael J. Roy, et al.,“The New Merger: Combining Third tion-files/wcm2020-1727093359.pdf. decline, employment (both quantitatively and qualitatively), ed_emp/---emp_ent/---coop/documents/publication/ Sector and Market-Based Approaches to Tackling Inequali- 115Annalisa Murgia and Sara de Heusch, “It Started with the 3 skills gaps, income distribution, trade for all, well-being, and wcms_582778.pdf. ties,” Social Business 5, no. 1 (Spring 2015): 47–60, https://doi. Arts and Now It Concerns All Sectors,” in Pathways into Cre-

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 69 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

Endnotes

ative Working Lives, edited by Stephanie Taylor and Susan tives on the Global Foundation Sector (Harvard University’s 131 “Worker Cooperatives: Performance and Success Fac- www.arts.gov/sites/default/files/Artists_and_Other_Cultur- Luckman, 211–230, 2020, https://link.springer.com/chapter/1 John F. Kennedy School of Government, 2018), 18–20, https:// tors,” Co-opLaw.org: Resources for Worker Cooperatives, al_Workers.pdf. 0.1007%2F978-3-030-38246-9_12; and Jenny R. Yang et al, cpl.hks.harvard.edu/files/cpl/files/global_philanthropy_re- Sustainable Economies Law Center, 2019, https://www.co- 140 Angie Kim, in discussion with the authors, February 9, 2021. Arts Workers in California (Urban Institute, January 19, 2021), port_final_april_2018.pdf. oplaw.org/knowledge-base/worker-cooperatives-perfor- 141US Department of the Treasury, Community Development https://www.urban.org/research/publication/arts-work- 123 Johnson, Global Philanthropy Report, 18–20. mance-and-success-factors/. Financial Institutions Fund, accessed January 15, 2021, ers-california/view/full_report. 124 Arleta Little, in discussion with the authors. 132 Brendan Martin, co-founder of SeedCommons, found- https://www.fdic.gov/consumers/community/mortgagelend- 116 “An Introduction and Welcome to Ohketeau,” Double Edge 125 Hazel Corcoran and David Wilson, The Worker Co-operative er and director of The Working World, a cooperative financial ing/guide/part-1-docs/cdfi-overview.pdf. Theatre, accessed February 7, 2021, https://doubleedgethe- Movements in Italy, Mondragon and France: Context, Success institution and business incubator based in Argentina, Nicara- 142 Judilee Reed, “Catalyzing Culture and Community through atre.org/living-presence-of-our-history. Factors and Lessons (Canadian Worker Co-operative Fed- gua, and the United States, in discussion with the authors. CDFIs,” PD&R’s The Edge, accessed February 7, 2021, https:// 117Eve Tuck and K. Wayne Yang, “Decolonization is not a Met- eration, May 31, 2010), https://community-wealth.org/sites/ 133 Justin Song, “Average Small Business Loan Interest Rates www.huduser.gov/portal/pdredge/pdr_edge_trend- aphor,” Decolonization: Indigeneity, Education and Society clone.community-wealth.org/files/downloads/paper-corcor- in 2020: Comparing Top Lenders,” ValuePenguin, Updated ing_011215.html. 1, no. 1 (2012): 1-40, https://clas.osu.edu/sites/clas.osu.edu/ an-wilson.pdf; and Jessica Gordon-Nembhard, “Collective January 21, 2020, https://www.valuepenguin.com/aver- 143 Federal Deposit Insurance Corporation, FDIC Community files/Tuck%20and%20Yang%202012%20Decolonization%20 Courage in the New Normal,” Kheprw Institute, May 31, 2020, age-small-business-loan-interest-rates; and Liz Knueven, Banking Study, December 2020, https://www.fdic.gov/re- is%20not%20a%20metaphor.pdf. video, https://www.youtube.com/watch?v=HvMfYOPeUpM. “The Average Personal Loan Interest Rate by State, Lender, sources/community-banking/report/2020/2020-cbi-study- 118Eve Tuck and K. Wayne Yang, “Decolonization is not a Met- 126 Erik K. Olsen, “The Relative Survival of Worker Cooperatives and Credit Score,” Business Insider, October 8, 2020, https:// full.pdf. aphor,” Decolonization: Indigeneity, Education and Society and Barriers to Their Creation,” Sharing Ownership, Profits, www.businessinsider.com/personal-finance/average-person- 144 (World Council of Credit Unions study in Williams 2007) 1, no. 1 (2012): 1-40, https://clas.osu.edu/sites/clas.osu.edu/ and Decision-Making in the 21st Century, 14, (December 9, al-loan-interest-rates. https://geo.coop/story/fact-sheet and http://www.geo.coop/ files/Tuck%20and%20Yang%202012%20Decolonization%20 2013), available at http://community-wealth.org/sites/clone. 134Brendan Martin, in discussion with the authors. story/benefits-and-impacts-cooperatives#footnote%205 is%20not%20a%20metaphor.pdf. community-wealth.org/files/downloads/article-olsen.pdf. 135 See also “Leadership,” Zebras Unite, 2020, https://ze- 145 Emily Kawano and Julie Matthaei, “System Change: A Basic 119 Tawna Little, “Humans of ArtPlace: Tawna Little,” interview 127 Samuel Barco Serrano et al., Financial Mechanisms for brasunite.coop/leadership; and US Department of the Trea- Primer to the Solidarity Economy,” Nonprofit Quarterly, July 8, by April Greene, ArtPlace, November 20, 2018, https://www. Innovative Social and Solidarity Economy Ecosystems, sury, Community Development Financial Institutions Fund, 2020, https://nonprofitquarterly.org/system-change-a-ba- artplaceamerica.org/blog/humans-artplace-tawna-little. (ILO, 2019), https://www.ilo.org/wcmsp5/groups/public/-- accessed January 15, 2021, https://www.fdic.gov/consumers/ sic-primer-to-the-solidarity-economy/. 120 Andrea Westall, “Value Led, Market Driven Social en- -ed_emp/---emp_ent/---coop/documents/publication/ community/mortgagelending/guide/part-1-docs/cdfi-over- 146 As Samuel Barco Serrano et al. note, “As an example, we terprise solutions to public policy goals,” The Progressive wcms_728367.pdf. view.pdf. can cite the case of Banca Etica, an Italian bank specialized Policy Think Tank, April 1, 2001, https://www.ippr.org/pub- 128Dayna Sherman, Building Community Wealth (ArtPlace 136Brendan Martin, in discussion with the authors. in addressing the financial needs of SSE organizations. At lications/value-led-market-driven-social-enterprise-solu- America, 2020), https://www.artplaceamerica.org/view/pd- 137 Brendan Martin, in discussion with the authors. the end of 2017 Banca Etica registered a net non-perform- tions-to-public-policy-goals; and The Smith Institute, Edited f?f=public://pictures/artplacefieldscancommunitywealth.pdf. 138 Justin Song, “Average Small Business Loan Interest Rates ing loan rate of 0.89% (it was 1% in 2016) and a gross rate of by Andrea Westall and Danny Chalkley, social enterprise fu- 129 Randy Cohen, “COVID-19’s Impact on The Arts Research & in 2020: Comparing Top Lenders,” ValuePenguin, Updated 2.99% (3,04% in 2016). Both figures are much lower than the tures (The Smith Institute 2007), https://community-wealth. Tracking Update,” Americans for the Arts, Updated January 11, January 21, 2020, https://www.valuepenguin.com/aver- corresponding non-performance rates for the Italian bank- 1 org/sites/clone.community-wealth.org/files/downloads/re- 2021, https://www.americansforthearts.org/node/103614. age-small-business-loan-interest-rates; and Liz Knueven, ing system, which had a 3.7% net ratio in 2017. This trend has port-westall-chalkley.pdf. 130 Richard Florida and Michael Seaman, “Lost Art: Measur- “The Average Personal Loan Interest Rate by State, Lender, been fairly stable over the years: in 2013, for instance, Banca 121Bénédicte Fonteneau et al., Social and Solidarity Econo- ing COVID-19’s Devastating Impact on America’s Creative and Credit Score,” Business Insider, October 8, 2020, https:// Etica had 2.02% of non-performance loans compared to the 2 my: Building a Common Understanding (Italy: ILO, 2010), 15, Economy,” Brookings, Metropolitan Policy Program, August www.businessinsider.com/personal-finance/average-person- 7.7% average of the banking system.” Serrano et al., Financial http://base.socioeco.org/docs/social_and_solidarity_econo- 11, 2020, https://www.brookings.edu/research/lost-art-mea- al-loan-interest-rates. mechanisms for Innovative Social and Solidarity Economy my_en.pdf. suring-covid-19s-devastating-impact-on-americas-cre- 139 National Endowment for the Arts, Artists and Other Cultur- Ecosystems, (ILO, 2019): 35 and 68, https://www.ilo.org/glob- 3 122 Paula D. Johnson, Global Philanthropy Report: Perspec- ative-economy/. al Workers: A Statistical Portrait (NEA, April 2019), 14, https:// al/topics/cooperatives/projects/WCMS_626176/lang--en/

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 70 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

Endnotes

index.htm. “Moreover, Third Sector loans have a lower default com/article/five-ceos-of-wealthy-foundations-pledge-to- and Barriers to Their Creation,” Sharing Ownership, Profits, 171 “Latinas and the Pay Gap,” AAUW, accessed January 16, rate compared to other sectors.” do-more-to-help-charities-pay-overhead/?cid2=gen_login_ and Decision-Making in the 21st Century, 14, (December 9, 2021, https://www.aauw.org/resources/article/latinas-and- 147 Maria Di Mento, “Five CEOs of Wealthy Foundations Pledge refresh&cid=gen_sign_in; and “We help you create the social 2013), available at http://community-wealth.org/sites/clone. the-pay-gap/. to Do More to Help Charities Pay Overhead,” The Chronicle of change you seek,” The Bridgespan Group, accessed January community-wealth.org/files/downloads/article-olsen.pdf. 172 “Black Women and the Pay Gap,” AAUW, accessed Janu- Philanthropy, September 4, 2019, https://www.philanthropy. 17, 2021, https://www.bridgespan.org/. 164 Richard C. Williams, The Cooperative Movement: Global- ary 16, 2021, https://www.aauw.org/resources/article/black- com/article/five-ceos-of-wealthy-foundations-pledge-to- 158 Nicholas Shatan and Olivia R. Williams, A Guide to Trans- ization from Below, (Burlington: Ashgate Publishing Com- women-and-the-pay-gap/. do-more-to-help-charities-pay-overhead/?cid2=gen_log- formative Land Strategies: Lessons from the Field (MIT pany, 2007), 7–35 and 139–148, http://preview.keyanmi. 173“In 2012–2016, women in the United States labor force in_refresh&cid=gen_sign_in. CoLab, June 2020), https://static1.squarespace.com/stat- com:28080/406000/981ebad0fd424b99b2761dd24b9a5b2a. (working full-year/full-time) earned $0.79 for every dollar men 148 Mihaela Buzec, “The Hidden Cost of an Arts Career—Artists ic/59e749467131a5e036c15d82/t/5f06708154b02120ab- pdf. earned. Among artists, the ratio was slightly lower—$0.77. Are Rent-Burdened in 80% of Cultural Districts,” RentCafé 2c8ef0/1594257540711/Community+Land+Trusts_CoLab. 165 Jessica Gordon Nembhard (Borzaga and Calera 2012), As women age, they earn progressively less than their male Blog, March 13, 2019, https://www.rentcafe.com/blog/rent- pdf. “Benefits and Impacts of Cooperatives,” Grassroots Econom- counterparts. For example, women artists aged 18–24 earn al-market/rental-housing-affordability-in-important-cultur- 159“Survey Finds Low Foreclosure Rates in Community Land ic Organizing (GEO), May 5, 2014, https://geo.coop/story/ $0.97 for every dollar earned by men artists in that age group. al-districts/. Trusts,” Lincoln Institute of Land Policy, March 17, 2009, fact-sheet; and http://www.geo.coop/story/benefits-and-im- But for women who are 35-44, the ratio drops to $0.84. By 149Buzec, “The Hidden Cost.” https://www.lincolninst.edu/es/news/press-releases/survey- pacts-cooperatives#footnote%205. the time they reach ages 55 to 64, women artists earn just 150 Amy Holodak, Jessica Lowing, and Melanie Breault, Com- finds-low-foreclosure-rates-community-land-trusts. 166 A Guide for Public Sector, Private Sector and Nonprofit $0.66 for every dollar male artists make.” National Endowment munity Land Trusts & Mutual Housing Associations, (May 160“the SSE has significant potential for the creation of em- Allies, accessed January 16, 2020, https://institute.app.box. for the Arts, Artists and Other Cultural Workers: A Statistical 20, 2016), https://www.amyholodak.com/wp-content/up- ployment in new or emerging sectors. This is true in particu- com/s/6faz1pkp4zuil4ee7iy9l7uq70rd819o. Portrait (NEA, April 2019), 28, https://www.arts.gov/sites/de- loads/2017/08/AmyHolodak-CLT-MHA-Paper.pdf. lar—as stated above—of care services, education and cultural 167 Democracy at Work Institute, Worker Cooperatives in the fault/files/Artists_and_Other_Cultural_Workers.pdf. See also 151Jessica Conrad, “Foundation House Brings Affordable services, and in general of jobs with a high relational content. United States (2019), https://cameonetwork.org/wp-content/ “Get the Facts: learn about gender inequity in the arts with Housing to Nonprofit Workers,” Shareable, December 2, 2013, In other words, in the face of the transformations that are re- uploads/2020/02/2019-Worker-Cooperative-Economic-Cen- some eye-opening facts,“ NMWA, 2018, https://nmwa.org/ https://www.shareable.net/foundation-house-brings-afford- shaping the world of work, the SSE provides a stronghold for sus-EN-FINAL_020220.pdf. support/advocacy/get-facts/. able-housing-to-nonprofit-workers/. all of those activities that are more markedly social and em- 168 Lisa Schincariol McMurtry” not “L.S. McMurtry, Advanc- 174 Jessica Milli et al., The Impact of Equal Pay on Poverty and 152 Buzec, “The Hidden Cost.” pathic in nature.” Samuel Barco Serrano et al, Financial Mech- ing Gender Equality: The Co-operative Way (Geneva: ILO, the Economy (IWPR, April 2017), https://iwpr.org/wp-content/ 153 National Endowment for the Arts, Artists and Other Cultur- anisms for Innovative Social and Solidarity Economy Ecosys- 2015), 20, https://www.ilo.org/wcmsp5/groups/public/-- uploads/2020/09/C455.pdf. al Workers: A Statistical Portrait (NEA, April 2019), 14, https:// tems, 16, (ILO, 2019), https://www.ilo.org/wcmsp5/groups/ -ed_emp/---emp_ent/---coop/documents/publication/ 175 Jessica Gordon Nembhard, “Racial Equity in Co-ops: 6 www.arts.gov/sites/default/files/Artists_and_Other_Cultur- public/---ed_emp/---emp_ent/---coop/documents/publi- wcms_379095.pdf. Key Challenges and How to Meet Them,” Nonprofit Quarterly al_Workers.pdf. cation/wcms_728367.pdf. 169“Women in cooperatives fare better than women in cap- (NPQ), (October 21, 2020), https://nonprofitquarterly.org/ra- 154 Amy Holodak, Jessica Lowing, and Melanie Breault, Com- 161 Virginie Pérotin, What Do We Really Know about Worker italist firms in terms of occupational attainment, hourly cial-equity-in-co-ops-6-key-challenges-and-how-to-meet- munity Land Trusts & Mutual Housing Associations, (May Co-operatives? (Co-operatives UK), accessed January 16, wages, and achievement of leadership positions” Genna R. them/. 1 20, 2016), https://www.amyholodak.com/wp-content/up- 2020, https://www.uk.coop/sites/default/files/2020-10/work- Miller, “Gender Equality in Worker Cooperatives,” Grassroots 176 Richard C. Williams, The Cooperative Movement: Global- loads/2017/08/AmyHolodak-CLT-MHA-Paper.pdf. er_co-op_report.pdf. Economic Organizing (GEO), April 7, 2011, https://geo.coop/ ization from Below, (Burlington: Ashgate Publishing Com- 155 Buzec, “The Hidden Cost.” 162I. Buendía-Martínez, A. Álvarez-Herranz, and M. M. Mené- node/615. pany, 2007), 7–35 and 139–148, http://preview.keyanmi. 2 156 See APPENDIX D and Buzec, “The Hidden Cost.” dez, “Business Cycle, SSE Policy, and Cooperatives: The Case 170 Worker Co-Ops: Weathering the storm of Covid-19 and Be- com:28080/406000/981ebad0fd424b99b2761dd24b9a5b2a. 157 Maria Di Mento, “Five CEOs of Wealthy Foundations Pledge of Ecuador,” Sustainability 12, (June 2020), https://www.mdpi. yond (Democracy at Work Institute, USFWC), accessed Janu- pdf. to Do More to Help Charities Pay Overhead,” The Chronicle of com/2071-1050/12/13/5485/htm. ary 16, 2021, https://institute.app.box.com/s/5x34s7yax2iw- 177 Samuel Barco Serrano et al., Financial Mechanisms for 3 Philanthropy, September 4, 2019, https://www.philanthropy. 163 Erik K. Olsen, “The Relative Survival of Worker Cooperatives mce28q2yeh1x8lfmmjiq. Innovative Social and Solidarity Economy Ecosystems, (ILO,

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 71 THE CASE FOR CULTURE & SOLIDARITY ECONOMY

Endnotes

2019); 5, https://www.ilo.org/wcmsp5/groups/public/--- ed_emp/---emp_ent/---coop/documents/publication/ wcms_728367.pdf. 178 Sell Your Business to the People Who Care Most,” Owner to Owners, accessed January 16, 2020, https://www.owne- r2owners.nyc/. 179 Dorian Gregory et al.,The Lending Opportunity of a Gen- eration: Worker Coop Conversion Financing FAQs and Case Studies (Cooperative Fund of New England, Project Equity, and Democracy at Work Institute: 2016), https://project-equity.org/wp-content/uploads/2019/11/LendingOpportunityOfA- Generation_updated-Nov-2019.pdf. 180 “Millennials and Gen Zs Hold the Key to Creating a ‘Better Normal’,” Deloitte, 2020, https://www2.deloitte.com/global/ en/pages/about-deloitte/articles/millennialsurvey.html. 181Emiko M. Ono, Moving Arts Leadership Forward (Hew- lett Foundation, 2016), https://hewlett.org/wp-content/ uploads/2016/08/Moving%20Arts%20Leadership%20For- ward_2016.pdf. 182 Samuel Barco Serrano et al., Financial Mechanisms for Innovative Social and Solidarity Economy Ecosystems (Gene- va: ILO, 2019): 16, http://www.socioeco.org/bdf_fiche-document-7032_en.html. 183 Trebor Scholz, “The Year in Platform Cooperatives,”Platform Cooperativism Consortium, January 7, 2020, https://platform. coop/blog/the-year-in-platform-cooperatives/; and Nathan Schneider, Everything for Everyone (Nation Books, September 2018), https://nathanschneider.info/books/everything-for-everyone/. 1 184 Dave Grace & Associates, Measuring the Size and Scope of the Cooperative Economy (UN DESA’s Division for Social Pol- icy and Development, 2014), 3, https://www.un.org/esa/soc- 2 dev/documents/2014/coopsegm/grace.pdf.

5 Culture & Solidarity Economy | Solidarity Not Charity: A Rapid Report | 72 1

5 Solidarity Not Charity: A Rapid Report | 73 BARRIERS & RECOMMENDATIONS

BARRIERS

A number of barriers have stifled the inno- · Despite the challenges of doing trans- nate Roots, and at Historic Clayborn Tem- · Build the solidarity finance sector, with vative work and potential growth of coop- formative work from within the nonprof- ple, for example. Solidarity Economy work is funders and investors who see themselves eratives, land trusts, and democratic finan- it sector, we need to find ways to use the growing in the Northeast as well. The Solidar- as part of, and not apart from, the move- cial vehicles as they intersect with arts and strengths of this sector to build vehicles for ity Economy Initiative in Massachusetts re- ment.188 culture. In a recent report, Common Future transformation. ported that “challenges are well worth taking Supporting the Solidarity Economy is not notes that when their network of leaders cre- on to build transformative pathways towards · More resources need to be garnered to- about communities “pulling themselves up ate “solutions ... at the intersection of arts, Solidarity Economy. Based on our learnings wards the core work of organizing and sup- by their bootstraps” with support from grant- community building, and economic develop- so far from Massachusetts, we offer the fol- porting the startup of alternatives. makers to enable BIPOC culture-bearers to ment, they too often operate in relative isola- lowing” recommendations: simply create a few small businesses. This tion with insufficient resources.”185 In addition · The potential for conflicts between com- · See Solidarity Economy holistically, as a work requires a transition toward econom- to needing more financial support, The Sol- munity organizing and sustaining a busi- transformative social movement. ic and racial justice with a holistic approach idarity Economy Initiative in Massachusetts ness is ever present and needs to be nego- where small cooperative businesses are reports that there are significant challenges tiated carefully and creatively. · Join up the building of alternatives with seen in connection to permanently afford- and tensions in the work of building Solidarity resist and reform efforts. This is echoed in the Solidarity Economy in able space that is community-owned with Economy:186 the South Assembly Report by Highlander · Be willing to innovate and be prepared to timebanks, mutual aid networks, and credit 187 Center, which is the result of conversations fail forward. unions as key components to this ecosystem. · Capitalist mindsets need to be overcome, with people from Puerto Rico, Florida, Ala- · Take an ecosystem approach to building To lift up the Solidarity Economy, grantmak- including the skepticism that alternatives bama, Georgia, Louisiana, Arkansas, Missis- and scaling up. ers must always see each entity as inter- 1 are possible. sippi, North Carolina, South Carolina, Virginia, connected to the others. Community own- · Support core organizing and incubation · Differences arising from race, ethnicity, Kentucky, West Virginia, and Tennessee. In ership and democratic governance must be 2 infrastructure. class, and organizational capacity must be the South, models of community control and cultivated within an ecosystem that creates addressed through deep internal work and community governance have been building · Inspire and connect initiatives so that we shared abundance for all. 3 relationship building. for decades at the Highlander Center, Alter- can learn from one another and scale up.

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 74 BARRIERS & RECOMMENDATIONS

Internal Work & Governance Power sharing takes a lot of unlearning for Embrace Systems-Change and Conduct a Power Analysis donors and grantees. The real learning—a kind of school—for us was around collective governance. It has a lot to do with giv- At the heart of the Solidarity Economy is a power? Does it spread wealth? Does it root ing up power and what we traditionally shift in power dynamics so that BIPOC and community wealth and power? The Swift call ‘risk’ taking. It has to be about being working class communities can own and Foundation practices a power accountability super aware of your position. It was im- govern their own resources. When applied to strategy by sharing their investment portfoli- portant to learn from peer funders to give the arts and culture grantmaking sector, this os publicly. This approach can be adopted by me feedback about my behavior and lan- transformation requires that grantmakers, other grantmakers to invite opportunities for guage. To hear: ‘You think I’m too dominant collaboration and accountability that can lend now?’ It’s also unlearning on the side of the (1) embrace systems-change, transparency to and begin repairing histories “We have to ask ourselves, How do I share grantees. Over and over, people still have of institutional harm while garnering feed- or hoard power? We have to build these no full trust. I understand that. We are also (2) learn about, acknowledge, and repair back on existing power dynamics. See Action into our organizational relationships and pushed back into our position as a donor. histories of harm enacted by their institu- Checklist on page 13 for more. This echoes tap into new practices for how to speak People send me reports even though we tions, and the work of It Takes Roots, a multiracial, mul- to one another, how to ask for permission don’t ask for it.” ticultural, multigenerational alliance of alli- from your community. We are challenged (3) identify and shift how people in the ances representing over 200 organizations with this on a daily basis. This is how we —Gertrude Flentge, DOEN Foundation sector show up in spaces—shifting re- and affiliates in over 50 states, provinces, feel you can rebuild solidarity among the sources as well as attitudes, language, and territories and Native lands on Turtle Island. people I know.” beliefs related to benevolence, charity, It Takes Roots suggests three key questions: and perceived expertise. Who makes the decisions? Who bene- —Noni Session, Executive Director, East 1 fits? What else will this impact?189 These Bay Permanent Real Estate Cooperative The Sustainable Economies Law Center sug- key questions can serve as entry points for 2 gests that grantmakers can transform due grantmakers to conduct a power analysis, diligence processes to include and account working to transform their practices to center 3 for three additional questions: Does it spread power accountability and power sharing.

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 75 BARRIERS & RECOMMENDATIONS “We…knew that folks on the ground absolutely have the insight required to make really big, fieldwide decisions but are rarely supported when they’re brought to the table … while one goal for us is to make space for people to practice and flex their field-building Internal Work & Governance muscle, we knew that many forms of support would be required along the way.” Embrace Systems-Change and Conduct a Power Analysis —Maura Cuffie, ArtPlace190

Analyze: Who makes the decisions? guideposts of the environmental justice address these root causes, authentic solu- solutions must work for ALL of our issues.”200 Supporting community governance and movement, which call for the work to be tions must flip the existing dynamics around Grantmakers such as the Mellon Founda- community ownership requires that grant- inclusive, to emphasize “bottom-up” or racial injustice, wealth extraction, and labor tion have added “systems-change” to their makers consider the best practices in trust- base-building organizing, to let folks/com- exploitation.”179 In the public sector, partic- mission, enabling a holistic, cross-portfolio based philanthropy,191 community philan- munities speak for themselves, to work in ipatory budgeting can be used to enable approach to grant and loan capital alloca- thropy,192 participatory grantmaking,193 which solidarity and mutuality, to build just rela- community-wide democratic decision-mak- tion. Grantmakers in the Arts defines equity all emphasize shared power. It Takes Roots tionships with each other, and to commit ing about public art funds. In the private as “the fair treatment, access, opportunity, writes that “those closest to the problems to self-transformation.”197 Mission Investors sector, Aaron Tanaka uses the term “solidar- and advancement for all people, while at the will inevitably know the most about what Exchange recommends grantmakers invest ity philanthropy” to refer to ways that the same time striving to identify and eliminate the solutions need to look like. For any with BIPOC financial partners—even at in- philanthropic foundations in the sector can barriers that have prevented the full partici- climate solution to truly work for Indige- vestment first without stated commitment to “re-imagine and practice philanthropy free of pation of some groups. Improving equity in- nous peoples, communities of color, and investing in BIPOC because evidence sug- its current constraints—the accumulation and volves increasing justice and fairness within working class communities, it must em- gests venture capital firms led by BIPOC are privatization of wealth, and the centralization the procedures and processes of institutions body the practice of community self-de- more likely to support and invest in commu- of power and control—to one that redistrib- or systems, as well as in their distribution of termination.”194 An example of community nities of color. This principle can also be ap- utes wealth, democratizes power and shifts resources. Tackling equity issues requires an self-determination is The Solidarity Economy plied to grantmakers and investors banking economic control to communities.”199 understanding of the root causes of outcome Initiative in Massachusetts,195 a pooled fund with Black-owned banks and credit unions. disparities within our society.”201 governed by a cohort of eleven grassroots See Action Checklist on page 13 for more. Analyze: What else will this impact? 1 movement organizations, empowered to de- It Takes Roots writes that “sometimes envi- sign and allocate spending to build the Sol- Analyze: Who benefits? ronmental “solutions” can create new prob- 2 idarity Economy ecosystem. Another exam- It Takes Roots writes that “the climate crisis lems for other issues that we care about—e.g. ple is the Kataly Foundation which adheres is ecological, but it has its roots in systemic housing, economic development, immigra- 3 to the Jemez Principles,196 “core organizing inequity that is both racial and economic. To tion, policing, mass incarceration, etc. Real

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 76 BARRIERS & RECOMMENDATIONS

Internal Work & Governance Embrace Systems-Change and Conduct a Power Analysis

“Philanthropy has an opportunity to be in solidarity with communities in enacting cultural restitution and reparations through participatory grant-making, so that those arts institutions and ecosystems are equitably invested in through a solidarity economy.”

—Allen Frimpong, Co-Founder, ZEAL

“Ideally, we need to be support- “This whole idea of “risk” is extractive. ing communities until gener- Foundations continue to presume that our job ational wealth exists in those is to reduce their risk when in fact, if they are communities. Our commitment charged with recapitalizing the communities might need to be there until they took from, to build community ownership, our/their goals are reached! the foundations must account for their own This means extended, multi- responsibility to hold risk with the communities year, flexible support, seed and that they are helping with collective rebuilding.” 1 experimentation money, and systems capital. Doing that all —Noni Session, Executive Director, 2 within a place of co-design and East Bay Permanent Real Estate Cooperative iterative co-learning.” 3 —San San Wong, Barr Foundation 4

Right diagram adapted from Sherry R. Arnstein, “A Ladder of Citizen 5 Participation,” Journal of the American Planning Association 35, no. 4 (1969): 216–224. Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 77 BARRIERS & RECOMMENDATIONS

Internal Work & Governance Embrace Systems-Change and Conduct a Power Analysis

GRANT CAPITAL the Arts have come together to support the Social and Solidarity Economy Ecosystems, Center for Cultural Innovation’s AmbitioUS which states: Grantmakers can expand their grantmaking program as an intermediary that has opened guidelines and provide multi-year and early up funding beyond-501c3s and provides [Grants] are fundamental in the early stages stage funding for Solidarity Economy insti- grants, loans, loan guarantees, investments, of [Solidarity Economy] enterprise life, and tutions and networks. Philanthropic foun- and recoverable grants to Solidarity Econ- even though they lose relative importance in “Once, I was presenting on stage with two dations and funders can work with cultural- omy initiatives that intersect with arts and the following stages, they might continue to amazing people, talking about impact in- ly-grounded intermediaries and partners to culture. AmbitioUS anticipates participating support the firm financially. Indeed,one of vesting. A philanthropist, the head of a facilitate resource-distribution without be- in the East Bay Permanent Real Estate Coop- the strengths of SE organizations is their foundation, said from her seat, ‘Well some- coming gatekeepers or power-brokers. For erative’s Direct Public Offering (DPO), which ability to mix different types of financial times people don’t know what they need.’ example, the Solidago Foundation believes is the Securities and Exchange Commission’s mechanisms, accessing sources of fund- That is the attitude we have to fight against. that “the most effective philanthropy works first Reg A+ qualification of a DPO benefiting ing (such as donations) that are typically I said, ‘I understand that you represent in close partnership with groups that center Black cooperative owners of real estate hold- not available to traditional for-profit en- some kind of professionalism, your career, people most directly impacted by structur- ings.205 AmbitioUS has purchased promissory terprises.206 etc. What you don’t understand is that I al inequities” and supports the Boston Ujima notes wherein their capital is subordinated to represent my grandmothers, my nephews, Project as both a partner and a grantee.204 lower the risk of the investments of commu- Doing this work with rigor requires collabo- my family, justice for Native Peoples. You The Surdna Foundation invests in the NDN nity members’ investments, who will be pro- rations between funders and intermediaries are trying to do well by doing good. That’s Fund which in turn serves as an intermedi- tected first from loss. and partners who have hyper-local expertise admirable. But it’s not equal in this conver- 1 ary, providing millions of dollars in flexible and long-term commitments to the commu- sation. You are not my peer in this conver- and patient capital directly to Native Nations, These examples of expansive guidelines re- nities to which they are accountable. See Ac- sation because of who and what I repre- 2 businesses, and organizations across Native flects the 2019 United Nations’ research proj- tion Checklist on page 13 for more. sent’.” America. Several members of Grantmakers in ect, Financial Mechanisms for Innovative —Michael Johnson, NDN Collective 3

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 78 BARRIERS & RECOMMENDATIONS

Internal Work & Governance Embrace Systems-Change and Conduct a Power Analysis

“I don’t want to be put in the position where someone is dangling something over my head, saying we have to move in a certain way. In the world we are seeking to create, I wouldn’t want those who are primarily focused on success in extractive systems to shape the groundwork of the new system because I fear that they would do something to unravel it in the future.”

—Greg Jackson (Founder, Repaired Nations and Equal Justice Works Fellow, Sustainable Economies Law Center)

3 Financial Mechanisms for Innovative Social and Solidarity Economy Ecosystems, (ILO, 2019): 32 and 103, https://www.ilo.org/global/topics/ 4 cooperatives/projects/WCMS_626176/lang--en/index.htm.

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 79 BARRIERS & RECOMMENDATIONS

New Tools & Investment and Endowment Shifts Commit to Long-Term Work with Multi-year Grants, Loans, and Equity Investments that support Solidarity Economy Institutions and Networks (Unincorporated Entities, Co-ops, LLCs)

LOAN CAPITAL AND EQUITY INVESTMENT begins with donations, self-financing, patient ECOSYSTEM-WIDE APPROACH same lines, when a financial mechanism is capital, and philanthropic investors for the based on the participation of a variety of ac- Grantmakers must conduct a careful analy- conceptual and start-up phases, and then To make the most impact, grantmakers must tors within the ecosystem (either in its design sis of the role of concessional loans in their moves toward traditional loans and equities convene their communities and stakehold- or in its management) this can also enhance grantmaking strategy and can work with after the launch, and continues with internal ers to design systems that support the com- the flow of information between them, result- partners such as AmbitioUS, SeedCommons, sources of support once it has stabilized. The plexity of emergent systems. For example, ing in a more capable network.210 the First People’s Fund, and NDN Collective diagram on page 79 illustrates a hypothetical grantmakers in the arts can strengthen con- to understand the best approach. Loans are series of developmental stages and the re- nections between entities in the Solidarity To make the most change when giving grants not appropriate in all cases. Some SE enti- lated financial mechanisms. Until supportive Economy ecosystem, including credit unions and loans, grantmakers must co-design the ties, such as mutual aid networks and barter policies incentivize SE institution-building in that make loans to arts and culture work- strategy, process, and terms of the grants networks, are not set up to earn profit and the United States, as seen in countries such er cooperatives, and to the land trusts upon and loans with the people most impacted by therefore will not be able to pay off a loan as Brazil, Spain, and France, long-term grants which artists and small businesses rely for inequities in grantmaking. If the strategy and with interest without extracting from the very will be required to create resilience in mar- affordable rent. The ILO states that: process does not change, it is unlikely that community they are seeking to serve. Even kets that are hostile to community-respon- the program will meet the actual needs and worker cooperatives, community land trusts, sive entities with low and slow returns. Financial mechanisms should also be ad- desires of the people it intends to support.211 and investment cooperatives need long-term dressed from an ecosystem perspective with There is an opportunity for grantmakers to support with grants and bridge capital as complexity taken into account when de- fund permanent research centers for SE and they take longer than profit-oriented busi- “[Solidarity Economy work] requires us to signing them. Thus, a mechanism based culture innovation and advocacy that will ag- 1 nesses to be financially self-sufficient.207 reimagine how we steward, control, and on the participation of the stakeholders gregate existing investments in the work and manage our capital differently.There are of an SSE organization not only improves establish a central hub to support grantmak- 2 Studying the global conditions that have other ways not only to do philanthropy but the availability of the resources or even ers, investors, communities, and other stake- supported strong Solidarity Economy eco- to be in good allyship with communities who the range of financial instruments, it also holders currently undertaking this work inde- 3 systems, the ILO proposes a model for the are trying to govern now.” strengthens ties within the ecosystem pendently. developmental stages of SE enterprises that and improves its sustainability. Along the 4 —Dana Kawaoka-Chen, Co-Director, Justice Funders203 5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 80 BARRIERS & RECOMMENDATIONS

3 “Conscious Portfolio Construction,” Heron, accessed February 7, 2021, https://www.heron.org/conscious-portfolio-construction-2/. 4

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 81 BARRIERS & RECOMMENDATIONS

Type of Enterprises by Main Financing Tool Low Medium Medium-High High

Philanthropic support: Enterprises that base their financ- Assets ing on donations, grants, or any other type of nonrefund- Capital by members able source. Patient capital

Partial self-sufficiency: Enterprises with financing partially Assets Mutual funds based on grants, donations or members’ capital (non-re- Capital by members Foundations fundable entries) and partially based on entries from their Social loan Venture philanthropy business (sale of goods or services), loans, or other re- Patient capital Crowd-funding fundable entries. Financing from public institutions “Rather than being hamstrung by man- Self-sufficiency of cash flow: Enterprises in which financ- Assets Crowd-funding Lending dates for “market returns,” a repara- ing comes from their business (sale of goods or services) Capital by members Financing from public Lending Crowd-fund- tions frame encourages foundations to or loans or other refundable entries. Members’ capital and Mutual funds institutions ing non-refundable capital represent a residual form of fi- Foundations Concessional/ Flexible reallocate their endowments toward nancing. Venture philanthropy loans building community wealth and finan- Patient capital cial independence. … Investment risk would be the worthwhile cost for restor- Operational self-sufficiency: Enterprises in which financ- Assets Lending Deferred profit Proceeds from assets ing asset ownership back to the coming is based mainly on refundable financing mechanisms, Capital by members Concessional/ Flexible Balance sheet assets munities from which it was extracted.” such as traditional or crowdfunding loans. The financing is Patient capital loans mainly directed to the daily operations with a low level of Lending crowd-fund- —Aaron Tanaka, funds directed to investments and innovation. ing Center for Economic Democracy Full marketization: Enterprises that can finance their busi- Assets Social venture capital Proceeds from assets Equity Social Bond 1 ness both with traditional form of entries (both refundable Capital by members Deferred profit Mezzanine capital and non-refundable) and with more sophisticated financ- Lending Hybrid capital 2 ing mechanisms, such as equities. Financing is not only Lending crowd-fund- addressed to cover the costs of daily operations, but to ing invest and innovate in order to be competitive on the mar- Crowd-funding 3 ket.

4 Samuel Barco Serrano et al., Financial Mechanisms for Innovative Social and Soli- darity Economy Ecosystems, (ILO, 2019), https://www.ilo.org/wcmsp5/groups/public/---ed_emp/---emp_ent/---coop/documents/publication/wcms_728367.pdf. 5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 82 BARRIERS & RECOMMENDATIONS

Four Key Barriers to Capital

4 Cheryl Dorsey et al., “Overcoming the Racial Bias in Philanthropic Funding,” Stan- ford Social Innovation Review, (May 2020), https://ssir.org/articles/entry/overcom- 5 ing_the_racial_bias_in_philanthropic_funding. Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 83 BARRIERS & RECOMMENDATIONS “It’s about fostering the conditions that allow for vitality. Like jazz, you foster the skill sets that can make the music, but the music is ephemeral. These skill sets include: an orientation to discomfort as evidence of the work, deep analysis of the contradictions in the work, openness orientation, Take a Systems-Change Approach learning with, deep ties to community, conscious understanding of power, and using it, and specific negotiation skills.” Support Collaboration, Leadership Development, and Study Groups —Arleta Little, McKnight Foundation213 Most people have no experience with demo- tion upon the issues that are most urgent courses), community workshopsand train- formal; requires member responsibilities cratic decision-making at work, at home, on- in their lives—is called popular education, ing programs, study tours (travel), reading and information sharing; rotates leadership line, or in school. Study is required to ensure and is practiced informally in study groups as lists, college courses. responsibilities; involves certain members that a culture of cooperation and the skills of well as in workshops facilitated by technical in networking and/or management. · Pre-Training and Orientation Formal; democratic governance are learned. In fact, assistance providers and business incubators week- or month-long; various degrees of · Public Education (for customers and continuous education is one of the seven in the Solidarity Economy, including High- intensity; industry specific as well as coop- community) Formal and informal; uses principles of cooperation.214 Dr. Jessica Gor- lander Center,217 Center for Economic Democ- erative economics and democracy educa- flyers, brochures, newsletters, packag- don Nembhard states that “Every African racy, the US Federation of Worker Coopera- tion. ing, websites, etc. to educate customers American-owned cooperative of the past tives, the Center for Family Life, and many and community about the co-op model that I have researched, and almost every more. · In-service Training Formal; ongoing; in- and principles, as well as about the co-op contemporary cooperative I have studied, dustry specific and (committee level, services and products; offers workshops, began as the result of a study group or de- The values underlying this learning include board) organizational skills; may use buddy school visits, community groups and com- pended on purposive training and orienta- lived experience as a criterion of knowledge, system; may rotate specific jobs and ex- munity activities; uses community service 215 pertise; boardtraining; self-management tion of members.” Cooperative initiatives an emphasis on peer-learning, and co-cre- and donations to inform public about the and strategies involve peer-to-peer training ated training that is grounded in community training. business and the model. in business planning, managing, accounting, culture and knowledge. Dr. Nembhard out- · Networking and Conference Formal or and cultivating democratic participation, par- lines the following educational practices used informal; cooperation development among ticularly for young people whose involvement by cooperative enterprises: 218 cooperatives and with other like-minded “I believe that there are things we can steal from the 1 ensures a cooperative’s sustainability and organizations; representation at local, re- right. Fund the scholarship, the think tank, the long- thus the community’s well being into the fu- · Study Circles Informal or formal; weekly gional, national, and international forums; term win. What will arts look like in 15 years, 20 2 ture. In most cases, Black-led cooperatives group meetings with readings and discus- conference participation and development years? If we funded like we believed in transforma- are an outgrowth of months and some- sion. for networking and increased skill develop- tion, how would I wrap a warm blanket around the 3 times years of study of a vital problem.216 · Curriculum Development Formal; adult ment and skill sharing. leaders that are doing this work?” This approach to learning—where people education (night school and weekend 4 · Leadership Development Formal and income together to understand and take ac- —Leticia Peguero, Nathan Cummings Foundation

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 84 BARRIERS & RECOMMENDATIONS

“People email me ALL THE TIME and say, “I want to learn about [culture and the Solidarity Economy].” People have to cobble together the skillset to do this work. There is an opportunity to do this kind of learning together.” Take a Systems-Change Approach —Kate Poole, Chordata Capital Support Collaboration, Leadership Development, and Study Groups

Study is required by all actors in the Solidar- · ArtBuilt or the Lower Manhattan Cultural with shared issues.219 These informal relation- makers in the public and private sector, facil- ity Economy, from artists and culture-bear- Council could collaborate with Smart.coop ships and collaborations have been happen- itated by trainers such as Nwamaka Agbo of ers to grantmakers, from policy advocates to to create online videos. ing slowly, but due to limited funds and often Restorative Economics, Farhad Ebrahimi of money managers, lawyers, and trustees. Arts due to the fact that these organizations do the Chorus Foundation, Government Alliance · Justice Funders could collaborate with and culture grantmakers can play a role not have paid staff, it is difficult to extend ca- on Race and Equity, All in Cities, RSF Social Grantmakers in the Arts to create trainings by supporting formal entities across arts pacity in order to sustain these collaborations Finance’s Integrated Capital Institute, and for grantmakers, and The New York City and culture and the Solidarity Economy to over time. Grants could help support organiz- Kate Poole of Chordata Capital. See Action Network of Worker Cooperatives or Seed- work together. For example: ers and study-group support staff who work Checklist on page 13 for more. Commons could collaborate with the First to coordinate people across organizations People’s Fund to continue their innovative · The Center for Economic Democracy could and informal efforts in regional hubs—maybe work. “I envision a co-op and Solidarity Economy collaborate with the Intercultural Lead- anchored in an organization such as the New research center in Washington, DC, the capital ership Institute to find share and develop There is an opportunity to convene SE law- Economy Coalition or US Solidarity Economy of the US, that is accessible to students of color workshops for artists and culture-bearers yers and financial innovators alongside law- Network. and low income students and communities. A about the Solidarity Economy. yers and financial players that work directly place that can attract visiting scholars and have with grantmakers to conduct peer-to-peer Resources should also be provided for arts · Springboard for the Arts could collaborate summer programs. There is a lot more research training around strategies for shifting legal and culture groups and grantmakers in the with the New Economy Coalition to create we can do on subaltern groups, economic and fiscal practices towards SE aligned initia- United States to learn from Solidarity Econ- workbooks about the Solidarity Economy cooperation and the Solidarity Economy. We tives. See Action Checklist on page 13. omy practitioner-leaders internationally (for and the arts. need more research on African Americans in co- 1 example, Brazil, Colombia, Italy, Luxembourg, ops, and we don’t have a good history of Latinx · Highlander Center and Alternate Roots Solidarity Economy hubs in Buffalo, St. Lou- Quebec, France, South Korea, Ecuador, Spain) co-ops, Asian American co-ops, First Nations 2 could collaborate with The Solidarity Econ- is, Louisville, San Diego, and Oakland want to who have been innovating and refining fi- co-ops, etc. We need a better understanding omy Initiative and the Boston Ujima Project engage in regional coordination, peer-learn- nancial support systems at the intersection of the history of subaltern peoples using 3 in Massachusetts to support peer-learning ing, and coalition building, whether that be of culture and the Solidarity Economy for two mutual aid and economic cooperation, and across regions. a network for the South, Midwest, Rust Belt, decades or more. Grantmakers can form and better documentation of how we run our own 4 or New England, or to coordinate sister cities support peer-mentorship groups for grant- cooperatives.” 5 —Jessica Gordon Nembhard, author of Collective Courage BARRIERS & RECOMMENDATIONS

Take a Systems-Change Approach Support Collaboration, Leadership Development, and Study Groups

While technological and cultural motivations fore have little reason to work together on democracy and belonging, (2) The Cultural clude artists and culture-bearers in their are present to build the Solidarity Economy, anything. Traditional firms do not have legal New Deal For Cultural and Racial Jus- Guaranteed Income pilot programs, as Yer- the legal and financial supports are in na- and financial tools that are not sector spe- tice, which calls for investments in BIPOC ba Buena Center for the Arts and Spring- scent stages. The majority of the people in- cific. This need not be the case. When Col- communities, organizations, and creators, board for the Arts are doing. Or it could look terviewed identified social and economic pol- orado farmers got the Limited Cooperative and was spearheaded by ArtChangeUS, like supporting the growing movement to icy change as the main lever that will make Association Statutes passed, they did not the Center for Cultural Power, First People’s create public banks, financial institutions lasting impact in the arts and culture sector, restrict it only to farmers, as they had in Fund, the National Association of Latino that are mandated in their mission to invest and yet nearly everyone recognized that the the past. Now the statute has become the Arts and Culture, Race Forward, and Sipp in things that return value to communi- sector needs to learn more about how to do leading tool for platform co-ops nation- Culture,221 and (3) the Cultural Communi- ties rather than provide profit to Wall Street this well. Interviewees recommended the fol- ally.220 ty Benefits Principles Toolkit, developed by shareholders. lowing: ArtChangeUS in collaboration with Detroit · Attend existing convenings that are held · Some interviewees cautioned that poli- cultural organizers to identify principles by Justice Funders, the Sustainable Econ- cies which do not fit squarely within the Pursue policies that are not sector re- of accountability and equitable practices · omies Law Center, PolicyLink, and Ameri- arts and culture sector should continue stricted. Policies that support the Solidar- across the spheres of public/private real cans for the Arts, among other key players. to be developed by the housing, bank- ity Economy in the arts and culture sector estate development and in the planning ing, and environmental groups that have will open doors that can be used in other · Convene peer groups to create policy and staging of public events, gatherings, been doing this work for years, as they are sectors. The cooperative ecosystem in the agendas with those most impacted and and convenings. accountable to people in their commu- United States has been profoundly weak- that align with the needs of the Solidar- · Work with public sector representatives nities. Arts and culture grantmakers can 1 ened by the fact that electric cooperatives, ity Economy ecosystem as it intersects and community advocates around oppor- best support their policy work by giving credit unions, agricultural cooperatives, with arts and culture. Arts Based Policy tunities to advance SE policies and values. them monetary resources and following 2 and worker cooperatives each have to rely Platforms include (1) Standing For Cultur- This might include things like joining with their lead. These interviewees encouraged on separate policy frameworks, and there- al Democracy, the US Department of Art the Mayors for Guaranteed Income to in- grantmakers to advocate for an increase 3 and Culture’s policy platform for cultural

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 86 BARRIERS & RECOMMENDATIONS

Take a Systems-Change Approach Support Collaboration, Leadership Development, and Study Groups

in the minimum “payout rate” that is man- and culture sector. Imagine policymak- decade.227 Over the next decade, arts and and include those within federal program- dated for private foundations, which was ers of all backgrounds who have built au- culture grantmakers can prioritize pipelines ming like SBA, FEMA assistance, and public previously set at 6% in 1969 and then low- thentic relationships with BIPOC artists to public sector employment and relation- lending. ered in 1981 to a flat rate of 5%.222 While and culture-bearers, as well as cultural- ship-building with new public sector hires. · The National Community Reinvestment some grantmakers feel that this would ly-grounded organizations. Jen Cole, Es- · Support paths within the public sector Coalition makes the case for expanding lead to fewer resources in the grantmaking trella Esquilín, and Gabriela Muñoz noted to advance procurement of goods and the 1977 Federal Reserve Community Re- community,223 over 300 foundations have that although “the public sector workforce services from Solidarity Economy orga- investment Act (CRA) to apply to all finan- signed a letter asking Congress to mandate is not reflective of our larger population nizations and networks, using communi- cial institutions, not just banks.231 Originally a 3-year 10% payout rate224 noting that, “for demographics … the public sector main- ty-based contracting agreements, require- enacted primarily to combat redlining, the every $1 a billionaire gives to charity, the tains higher rates of employment of Afri- ments for community-led participatory CRA requires banking regulators to encour- rest of us chip in as much as 74 cents in can-American, Latinx, and women than the processes, and payment structures in mu- age financial institutions to meet the credit lost tax revenue.”225 Given the current crisis private sector owing to union rules, civil nicipal planning.228 needs of the communities in which they do being faced by the arts (along with many service hiring and promotions processes, business.232 By expanding this regulation other sectors of society), investing money and standardized public sector job clas- · Advocate for independent workers to be to all financial institutions, the CRA would now to prevent further loss and damage is sifications and pay rates.”226 They see an recognized legally as a legitimate type of marshal the $21T in assets from the mutu- much more important than ensuring lon- opportunity for intentional collaboration worker and be included in workers’ bene- al fund industry, $1.2T in insurance premi- gevity of funds. In fact, a failure to invest at and cultural shifts as retirements occur be- fits and protections. Arts workers are three ums, and the financial resources of mort- transformative levels now may all but en- cause “the public sector workforce is the times more likely to work as freelancers gage companies towards communities. 1 sure today’s problems are carried forward oldest in age, by industry, in America. The than in any other industry, so a new econ- into the future. average employee is 46.7 years old and omy is also one that gives them the condi- · The Center for Law and Social Policy 229 2 more than ⅓ of the workforce at the local tions to realize stability and safety nets. (CLASP) outlined in a 2014 report key pro- · Cultivate the next generation of public and state levels is set to retire within the Extend protections of non-employee busi- visions for expanding the Workforce In- sector workers who understand the arts 3 nesses (as seen with AB5 in California230) novation and Opportunity Act which is

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 87 BARRIERS & RECOMMENDATIONS

Take a Systems-Change Approach Support Collaboration, Leadership Development, and Study Groups

the primary federal source for workforce NCBA in the US). Asking to be represented members (Doc Servizi in Italy, SEWA Coop- relationships can be encouraged by support- development. CLASP encourages the US in the emergency task forces and commit- erative Federation in India). ing existing networks and coalitions such as Departments of Education and Labor and tees established at the local and national the US Federation of Worker Cooperatives · What is needed is a wide range of policies other federal agencies to maximize op- levels (National Rural Electric Cooperative and the New Economy Coalition to discuss that create a supportive environment and portunities for system alignment and Association in the US, the Spanish Confed- cultural policies as a peer group.236 that covers social, fiscal, credit, invest- cross-system continuous improvement eration of Social Economy Enterprises in ment, industrial, procurement, and training processes to better serve youth and adults Spain). The economic system culture-bearers and policies. For example, the ILO reports that with barriers to employment.233 artists want is not only possible—it already · Calling for the establishment of specific since 2000, the following policies have cre- exists. By transforming organizational prac- Grantmakers in the United States can look at relief funds that would allow cooperatives ated an enabling environment for the Soli- tices to center power accountability and proposals made at an international scale and and other Social and Solidarity Economy darity Economy: power sharing, expanding grantmaking apply these proposals to our national context. organizations to mitigate the negative ef- · Creation of Solidarity Economy related guidelines to provide multi-year and early As the United Nations’ International Labor fects of the crises and to be more effective ministries or departments in Colombia stage funding for Solidarity Economy insti- Organization (ILO) reports, cooperatives, their partners in delivery of services especially and Luxemburg. tutions and networks, supporting SE entities organizations, and Solidarity Economy enter- for the most vulnerable (Euclid network, in collaboration and cooperative study, and prises and their networks are calling for the COOP Europe, the Spanish Confederation · Comprehensive policy support in Brazil advocating for policies that support Soli- following during COVID-19:234 of Social Economy Enterprises in Spain, the and Ecuador. darity Economy infrastructure, grantmakers European Network of Social Integration En- Cross-country learning via policy dialogue can work to strengthen and cultivate that · Calling on governments to include coop- terprises in Europe, Forum Nazionale Ter- needs to take place to generate and dissemi- 1 system, following the lead of Black, Indige- eratives, mutual associations and social zo Settore in Italy Social Economy Europe, nate knowledge of policies conducive to Sol- nous, People of Color, disabled, queer, trans, enterprises in relief packages (Social En- ACEVO in the UK). idarity Economy and the institutional and po- 2 and working class creatives who who are terprise Sector Alliance in Australia, Co-op- litical contexts that facilitate effective policy · Advocating with the government for mea- innovating models for self-determination and eratives UK , Italian Cooperative Alliance, design and implementation.235 Collaborative 3 sures such as income support for their community wealth.

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 88 BARRIERS & RECOMMENDATIONS

Learn More: Top 10 Resources

Power-Sharing in Grantmaking · US Solidarity Economy Network · Guiding a Giving Response to Anti-Black · The Color of Money Injustice · The Next System Project 9. Shows and Podcasts · Trust Based Philanthropy · WEBINAR: Leveraging Investments in Sup- · Leeway Foundation’s transition from fami- port of Social Justice · Interdependence.FM Podcast United Nations International Solidarity ly-control to community-control (video) Economy Reports · The Laura Flanders Show See the list of people interviewed for this 7. Reports about Inequity in Funding report and consider hiring them for individ- · Economic Update by Democracy @Work · The Contribution of SSE and Social Finance ual consultations. to the Future of Work · Pocket Change · Upstream Podcast · Not Just Money · The Rebel Beat Solidarity Economy Education and Work- Solidarity Economy Legal Questions and shops for Grantmakers · Media Reparations Workshops 10. Conferences

· Justice Funders 8. Books about the History of the Solidari- · Sustainable Economies Law Center (SELC): · New Economy Coalition’s Common · Chordata Capital (co-op, land trust, barter, community cur- ty Economy · Bound conference rency legal support) · Kataly Foundation / Nwamaka Agbo · Collective Courage: A History of African · Justice Funders · SELC Webinar on Worker Self-Directed · Farhad Ebrahimi American Cooperative Economic Thought Nonprofits · Allied Media Conference 1 and Practice · Weavers’ Fellowship Donor Programming · People’s Movement Assemblies · The New Systems Reader · Center for Popular Economics 2 Recommendations for Giving and Endow- · CoCap ment Action · On Common Ground: International Per- spectives on the Community Land Trust 3 Solidarity Economy Terms Explained · The Case for an Emergency Charity Stimu- · Building for Us: Stories of Homesteading 4 · New Economy Coalition lus and Cooperative Housing

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 89 BARRIERS & RECOMMENDATIONS

Endnotes

185 Dayna Sherman, Jamie Hand, and Chelsea Bruck, Building 194It Takes Roots. 206 Samuel Barco Serrano et al., Financial Mechanisms for 213 Aaron Tanaka, “Solidarity Philanthropy: Reparations, De- Community Wealth: The Role of Arts and Culture in Equitable 195”Seeding the Next Economy,” Massachusetts Solidarity Innovative Social and Solidarity Economy Ecosystems, (ILO, mocracy & Power,” Justice Funders, July 23, 2018, https:// Economic Development (ArtPlace America, December 2020): Economy Initiative, accessed February 7, 2021, https://www. 2019): 32 and 103, https://www.ilo.org/global/topics/coopera- medium.com/justice-funders/solidarity-philanthropy-repara- 5, https://creativeplacemakingresearch.org/wp-content/ solidaritymass.com/. tives/projects/WCMS_626176/lang--en/index.htm. tions-democracy-power-9961ef2e1b64. uploads/2020/12/2020-12_ArtPlace-Field-Scan_Econom- 196 Jemez Principles for Democratic Organizing (SNEEJ, De- 207 Samuel Barco Serrano et al., Financial Mechanisms for 214”Cooperative Identity, Values & Principles,” International ic-Development_Sherman.pdf. cember 1996), https://www.ejnet.org/ej/jemez.pdf. Innovative Social and Solidarity Economy Ecosystems, (ILO, Co-operative Alliance, accessed February 9, 2021, https:// 186 “Executive Summary,” The Solidarity Economy Initiative 197Miya Yoshitani, Gloria Walton, and Colette Pichon Battle, 2019): 32, https://www.ilo.org/wcmsp5/groups/public/--- www.ica.coop/en/cooperatives/cooperative-identity. (SEI) report 2017, accessed January 24, 2021, https://www. “Environmental Justice Resourcing Collective,” The Kataly ed_emp/---emp_ent/---coop/documents/publication/ 215 Jessica Gordon Nembhard, Collective Courage (Pennsylva- solidaritymass.com/executive-summary. Foundation, December 23, 2020, https://kataly.medium.com/ wcms_728367.pdf. nia: The Pennsylvania State University Press, 2014), 85. 187 “Solidarity Economy in the South,” Highlander Re- environmental-justice-resourcing-collective-c418096d9615. 208 “Conscious Portfolio Construction,” Heron, accessed 216Jessica Gordon Nembhard citing Miles Connor 1939. Jessi- search and Education Center, accessed February 7, 2021, 198It Takes Roots. February 7, 2021, https://www.heron.org/conscious-portfo- ca Gordon Nembhard, Collective Courage (Pennsylvania: The https://highlandercenter.org/our-impact/solidarity-econo- 199Aaron Tanaka, “Solidarity Philanthropy: Reparations, De- lio-construction-2/. Pennsylvania State University Press, 2014), 87 and 109. my-in-the-south/. mocracy & Power,” Justice Funders, July 23, 2018, https:// 209Samuel Barco Serrano et al., Financial Mechanisms for 217 “Mission and Methodologies,” Highlander Research and 188 “Executive Summary,” The Solidarity Economy Initiative medium.com/justice-funders/solidarity-philanthropy-repara- Innovative Social and Solidarity Economy Ecosystems, Education Center, accessed February 9, 2021, https://high- (SEI) report 2017, accessed January 24, 2021, https://www. tions-democracy-power-9961ef2e1b64. (ILO, 2019), https://www.ilo.org/wcmsp5/groups/public/-- landercenter.org/our-story/mission/#:~:text=Popular%20 solidaritymass.com/executive-summary. 200It Takes Roots. -ed_emp/---emp_ent/---coop/documents/publication/ Education%20is%20a%20participatory,the%20seed%20to%20 189It Takes Roots, accessed February 7, 2021, https://ittakes- 201Grantmakers in the Arts, Racial Equity in Arts Funding, wcms_728367.pdf. make%20change. roots.org/. (Bronx, NY: Grantmakers in the Arts, Revised April 11, 2019), 210 Samuel Barco Serrano et al., Financial Mechanisms for 218 Jessica Gordon Nembhard, Collective Courage (Pennsylva- 190 “2020, Closings and Openings,” ArtPlace 10 Years, ArtPlace https://www.giarts.org/sites/default/files/GIA-racial-equi- Innovative Social and Solidarity Economy Ecosystems, (ILO, nia: The Pennsylvania State University Press, 2014), 88. America, 2020, https://forecast-public-art.foleon.com/art- ty-statement-of-purpose.pdf. 2019): 32 and 103, https://www.ilo.org/global/topics/coopera- 219 Esther Choi, in discussion with the authors. place/10years/2020/. 202Sherry R. Arnstein, “A Ladder Of Citizen Participa- tives/projects/WCMS_626176/lang--en/index.htm. 220 Nathan Schneider, Tech New Deal: Policies for Com- 191 https://trustbasedphilanthropy.org/ tion,” Journal of the American Institute of Planners, 211Dorian O. Burton and Brian C. B. Barnes, “Shifting Philan- munity-Owned Platforms, accessed January 22, 2021, 192 Jenny Hodgson and Anna Pond, “How Community Philan- (2007): 216-224, https://www.tandfonline.com/doi/ thropy From Charity to Justice,” Stanford Social Innovation https://osf.io/t7z2m/?view_only=c8ed9a48a9c- thropy Shifts Power,” The Foundation Center, 2018, https:// abs/10.1080/01944366908977225. Review, (January 3, 2017), https://ssir.org/articles/entry/shift- 04c509c890894d169b206. grantcraft.org/wp-content/uploads/sites/2/2018/12/Com- 203 Dana Kawaoka-Chen and LIFT Economy, “Next Economy ing_philanthropy_from_charity_to_justice#. 221 “Cultural New Deal,” Cultural New Deal, accessed January munity_Philanthropy_paper.pdf. Now #159,” LIFT Economy, May 16, 2019, https://www.youtube. 212 Cheryl Dorsey et al., “Overcoming the Racial Bias in Phil- 22, 2021. https://culturalnewdeal.com/. 193 Cynthia M. Gibson, “Participatory Grantmaking: Has Its Time com/watch?v=0czv92hwcvU. anthropic Funding,” Stanford Social Innovation Review, (May 222“Stifled Generosity,” Justice Funders, accessed January 22, Come?” The Ford Foundation, 2017, https://www.fordfounda- 204 https://solidago.org/about/ 2020), https://ssir.org/articles/entry/overcoming_the_ra- 2021, http://justicefunders.org/resonance/stifled-generosity/. tion.org/media/3599/participatory_grantmaking-lmv7.pdf. 205 Angie Kim, in discussion with the authors, February 1, 2021. cial_bias_in_philanthropic_funding. 223“Policy Brief: Foundation Payout and the Covid-19 Crisis,” 1

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 90 BARRIERS & RECOMMENDATIONS

Endnotes

Council on Foundations, accessed January 22, 2021, https:// AB 5 Applies to the Music Industry,” Assemblywoman Lorena ed_emp/---emp_ent/---coop/documents/publication/ www.cof.org/content/policy-brief-foundation-payout-and- Gonzalez District 80, April 17, 2020, https://a80.asmdc.org/ wcms_582778.pdf. covid-19-crisis. press-releases/lorena-gonzalez-announces-pending-chang- 236 Social and Solidarity Economy and the Challenge of Sus- 224Alex Daniels, “Nearly 300 Donors and Grant Makers Join es-how-ab-5-applies-music-industry. tainable Development (Geneva: TFSSE, June 2014), https:// Push to Require Philanthropic Funds to Give More Now,” 231 Josh Silver, “Why the Community Reinvestment Act drive.google.com/file/d/1EOLZgZIpEuO1IWM9MDG4iw3eUmjf- The Chronicle of Philanthropy, 2020, https://www.philan- Should Be Expanded Broadly Across the Financial Indus- mAUa/view. thropy.com/article/nearly-300-donors-and-grant-makers- try,” National Community Reinvestment Coalition, August join-push-to-require-philanthropic-funds-to-give-more- 17, 2020, https://ncrc.org/why-the-community-reinvest- now?cid2=gen_login_refresh&cid=gen_sign_in. ment-act-should-be-expanded-broadly-across-the-finan- 225Chuck Collins and Helen Flannery, The Case for an Emer- cial-industry/ gency Charity Stimulus, IPS, May 11, 2020, 13, https://inequal- 232 “Community Reinvestment Act (CRA),” Board of Governors ity.org/wp-content/uploads/2020/05/Brief-CharityStimu- of the Federal Reserve System, accessed February 14, 2021, lus-Revision-May12-FINAL.pdf. https://www.federalreserve.gov/consumerscommunities/ 226 David Cooper, Mary Gable, and Algernon Austin, “The Pub- cra_about.htm. lic-Sector Jobs Crisis,” Economic Policy Institute, paper 339, 233 Kisha Bird, Marcie Foster, and Evelyn Ganzglass, New Op- (May 2, 2012), https://www.epi.org/publication/bp339-public- portunities to Improve Economic and Career Success for sector-jobs-crisis/. Low-Income Youth and Adults: Key Provisions of the Work- 227 Wendy Freeman Carr, “The Future of Public Service,” De- force Innovation and Opportunity Act (WIOA) (The Center for loitte, accessed January 24, 2021, https://www2.deloitte. Law and Social Policy, September 2014), https://www.clasp. com/us/en/pages/public-sector/articles/future-of-pub- org/sites/default/files/public/resources-and-publications/ lic-service.html. publication-1/KeyProvisionsofWIOA-Final.pdf. 228 PolicyLink and Emerald Cities, “Inclusive Procurement And 234“Cooperatives and Wider SSE Enterprises Respond to Contracting,” PolicyLink, accessed February 9, 2021, https:// COVID-19 Disruptions, and Government Measures are Being www.policylink.org/resources-tools/inclusive-procure- Put in Place,” ILO, April 24, 2020, https://www.ilo.org/global/ ment-and-contracting. topics/cooperatives/news/WCMS_740254/lang--en/index. 229 Jenny R. Yang et al., Arts Workers in California (Urban In- htm. stitute, January 19, 2021), https://www.urban.org/research/ 235Peter Utting, Public Policies for Social and Solidarity Econ- publication/arts-workers-california/view/full_report. omy; Assessing Progress in Seven Countries (Geneva: ILO, 230 “Lorena Gonzalez Announces Pending Changes to How 2017): 38, https://www.ilo.org/wcmsp5/groups/public/--- 1

5 Barriers & Recommendations | Solidarity Not Charity: A Rapid Report | 91 1

5 Solidarity Not Charity: A Rapid Report | 92 APPENDIX A: Transformation

MARKET-BASED PARADIGM COMMONS-BASED PARADIGM

Social Dynamic Competition; I prevail at the expense of others. Collaboration; together we rise.

Power Tendency Centralization and monopoly Decentralization and collaboration

Leadership Individual Shared, rotating, co-leaders

Racial Imaginary White-led and White-culture organizations can serve everyone Culturally-grounded and community-based organizations serve and deserve to receive the majority of programmatic, financial, and their people and receive an equitable distribution of programmatic, informational resources financial, and informational resources

Strategy Five-year strategic plans Emergent, principled, responsive

Org Form Hierarchical firm, nonprofit, 501c3 Collective, cooperative, worker-managed nonprofit, guild, mutual association, LLC, 501c4, unincorporated

Creative Agents Individual artists, charismatic leaders Culture-bearers, collectives, rotating co-leaders, culturally- grounded orgs

Grantmaking Culture Polite, avoid conflict “Messy,” rupture and repair

Role of Foundations Charity, “we know what is best for you,” proud convener of artists Solidarity, reparations, “we follow your lead,” humble attendee of 1 artist-led gatherings

2 Leadership Skill Sets Written word, delegation, strategic planning, research, Storytelling, power analysis, conflict transformation, facilitation, measurement, analysis organizing 3 Tools of Support Grants Grants, peer lending, mutual aid, community currency, non- extractive finance 4

5 Appendix A | Solidarity Not Charity: A Rapid Report | 93 APPENDIX A: Transformation

MARKET-BASED PARADIGM COMMONS-BASED PARADIGM

Outputs Short-term projects Daily practices, member gatherings, trusting relationships, long- term infrastructure

Timeframe for Support 1 year or less, restricted 5–20 years, unrestricted

Application Written Conversations

Decision Makers Program officer, panel-review Grassroots advisory board, participatory assembly, ripple granting

Review / Reporting Written Conversations, artwork, video

Geographic Focus Urban spaces dominate Emphasis on regional, rural, and virtual support

Main Gathering Structure Meetings, conferences Assembly, encuentro, ritual, deep dive, unconference

Surplus Maximize return on investment Redistribute for community wellbeing

Use-rights Granted by the owner (or not). Focus on: individual property and Co-decided by co-producing users. Focus on: equity, access assets 1 Pay Wages Shared livelihood

2 Political Economy Neoliberal, capitalist Post-capitalist: Solidarity Economy, socialism, or social democracy 3

4 The first two lines were created by Future Architects and modified from David Bollier and Silke Helfrich, The Wealth of the Commons (Levellers Press, 2012). The rest are based upon interviews and Justice Funders’ “Guiding Principles & Values,” Justice Funders, accessed January 17, 2021, http://justicefunders.org/resonance/guiding-values-principles/; and Just Transition for Philanthropy (Justice Funders), accessed Janu- 5 ary 17, 2021, http://justicefunders.org/wp-content/uploads/2019/01/Spectrum_Final_12.6.pdf. Appendix A | Solidarity Not Charity: A Rapid Report | 94 APPENDIX B: Just Transition Spectrum JUST TRANSITION FOR PHILANTHROPY

More Extractive Less Extractive Restorative Regenerative Transformation!

Underlying Individuals and institutions Individuals and institutions Individuals and institutions Rather than being accumulated assumptions have the right to endlessly have the right to have a moral obligation by individuals and institutions, on the role accumulate capital and make accumulate capital, but to redistribute their capital must support the of capital decisions on how it should be also have the responsibility accumulated capital in collective capacity of allocated for the public good. to give away wealth for support of communities communities most impacted by The preservation of wealth the public good. The most impacted by economic economic inequality to produce and power must be prioritized preservation of wealth and inequality. Positive social for themselves, give to and Wealth is over the needs of people and power can occur alongside and environmental impact invest directly in what their redistributed, the environment. making positive social and must be prioritized over communities need, and retain power is environmental impacts. preserving wealth and the returns generated from power. these investments. All aspects democratized of collective wellbeing must be and economic prioritized over the wealth and control is shifted power of a few. to communities in a way that is truly Underlying Philanthropy that perpetuates Philanthropy that Philanthropy that repairs Philanthropy that actively builds regenerative for approach to power dynamics between addresses symptoms the harms of the past new economic systems that people and the philanthropy givers and receivers, with the of social and ecological endured by communities transfer the management and planet. expectation of a financial problems without tackling who have been subjected control of financial resources return to the ultimate benefit root causes of injustice. to exploitation within away from institutions and of the investor, even at the the extractive economy. towards communities who 1 expense of communities. Foundations are rooted have been impacted by wealth Foundations should maintain in and accountable to the accumulation and the extractive control of and grow their organizing and visions of economy. 2 resources indefinitely to exist historically marginalized in perpetuity. communities. 3

4 RELATIONSHIP TO GRANTEES & COMMUNITIES 5 Appendix B | Solidarity Not Charity: A Rapid Report | 95 Extractive Less Extractive Restorative Regenerative

Foundations wield power over grantees Grantees are expected to be responsive Grantees’ knowledge, expertise and Authentic partnership where grantees in paternalistic and controlling ways that to foundations’ desires for programmatic lived experiences are acknowledged and retain the right to design the solutions for are based in risk-aversion, scarcity and activities and requests for time, respected. their lives rather than have approaches fear. knowledge and other resources. imposed on them.

LEADERSHIP