Nonprofits Are Messy: Lessons in Leadership | Fundraising | Board Development | Communications

Episode 216: Just Fund Me! (with Yada Peng) Release Date: November 23, 2024

In Episode 216 of "Nonprofits Are Messy," host Joan Garry engages in a profound conversation with Yada Peng, a serial entrepreneur dedicated to building critical social justice infrastructure. Peng is the founder and CEO of Just Fund, an innovative nonprofit revolutionizing the way funding is distributed to historically excluded communities. This detailed summary captures the essence of their discussion, highlighting key insights, lessons, and inspiring stories that underscore the importance of power, trust, and strategic funding in the nonprofit sector.

1. Introduction and Background

Joan Garry introduces Yada Peng by highlighting her extensive experience in advocating for marginalized communities. Peng’s work focuses on understanding and redistributing power to historically excluded groups. With over 25 years of building organizations that address systemic injustices, Peng’s entrepreneurial spirit is evident in her ventures, including Prism, an independent newsroom led by journalists of color, and her current project, Just Fund.

Joan Garry [00:00]: "Her guest today thinks a lot about power, where it lives, how to access it, and how to move it to historically excluded communities."

2. Early Life and Motivation

Peng shares her personal journey, rooted in experiences of invisibility and discrimination. As the daughter of a Chinese father and a Brazilian mother, growing up in the U.S. South exposed her to profound injustices, shaping her commitment to social justice.

Yada Peng [04:20]: "I remember, you know, being four years old and walking down the street holding my dad's hand in Florence, Alabama and having people throw rocks at my dad."

3. Transition to Entrepreneurship

Peng discusses the transition from working within organizations to founding her own nonprofits. She credits mentorship and the supportive network of women from the Philanthropist Workshop for empowering her to identify and address systemic problems through entrepreneurship.

Yada Peng [06:01]: "It was just around, hey, here's a problem. How can I address it?"

4. Common Theme: Power and Equity

A recurring theme in Peng’s work is the redistribution of power to empower frontline organizations. She emphasizes the importance of funding those closest to the issues to foster systemic change.

Yada Peng [12:48]: "The theme is really around improving conditions for people, you know, making sure that communities can thrive."

5. Experience at Solidaire

Peng reflects on her tenure at Solidaire, a network aiming to move money in solidarity with social movements. This experience was pivotal, highlighting the gaps in philanthropic practices and inspiring the creation of Prism and Just Fund.

Yada Peng [14:36]: "What I saw there was really eye-opening... organizations like Southerners Organizing on a New Ground... needed the money to do incredible work, but no one knew about them."

6. Creating Just Fund: Origin and Vision

Just Fund emerged from the realization that existing philanthropic systems were inefficient in distributing resources to deserving organizations. Peng collaborated with other funds to create a common application platform that streamlines funding processes, enhancing trust, transparency, and accountability.

Yada Peng [18:14]: "How do we make it easier for groups like that to get funding?... we spent a lot of time rolling up our sleeves around what could this Common app look like?"

7. How Just Fund Works

Just Fund operates as a common grant application platform, allowing nonprofits to apply to multiple funders simultaneously. This approach saves time and resources, enabling funders to track funding gaps and allocate resources more strategically.

Yada Peng [23:04]: "We set out to solve a specific problem in front of us... and then pivot and see what works."

8. Funding and Sustainability

Currently, Just Fund is partially self-sustaining, with 51% of its operating budget derived from fees paid by foundations and funders using its platform. Peng envisions reaching full sustainability by increasing operational revenue while continuing to scale its impact.

Yada Peng [21:43]: "51% of our operating budget comes from fees... foundations pay us to run their grant cycles on Just Fund."

9. Marketing and Adoption

Just Fund relies heavily on word-of-mouth marketing, with existing users recommending the platform to others. This grassroots approach fosters a community-driven growth model, emphasizing trust and proven efficacy.

Yada Peng [24:30]: "It's been a lot of word of mouth... existing funders referring other funders into us."

10. Notable Success Stories

Peng highlights several success stories from Just Fund users, notably Emergent Fund, which has distributed $12 million through 12,000 grants. These examples demonstrate the platform’s ability to facilitate rapid and effective resource distribution.

Yada Peng [28:44]: "Emergent Fund... moved $12 million in just a few years through 12,000 grants."

11. Trust-Based Philanthropy and Power Dynamics

A significant portion of the discussion centers on trust-based philanthropy. Peng argues that moving money quickly and building trust-filled relationships between funders and grantees are essential for empowering communities and fostering sustained social change.

Yada Peng [33:45]: "Moving money at the speed of trust means you and I have to be in trust-filled relationships to move money."

12. Advice and Key Takeaways

Peng offers valuable advice to nonprofit leaders and funders. She emphasizes the importance of trusting oneself, building supportive communities, and embracing risk and failure as pathways to innovative solutions.

Yada Peng [41:29]: "Trust yourself... Surrounding yourself with people who believe in you is so important."

Yada Peng [43:57]: "Take risk... The faster we fail, the faster we're going to get to that winning solution."

Concluding Thoughts

Yada Peng’s insights in this episode underscore the transformative potential of strategic funding and trust-based relationships in the nonprofit sector. By simplifying the funding process and prioritizing trust, Just Fund empowers organizations to thrive and drive meaningful social change. Joan Garry and Yada Peng's conversation serves as an inspiring guide for nonprofit leaders aiming to navigate the complexities of funding, leadership, and community empowerment.

For more information on Just Fund and to explore opportunities, visit Just Fund.