For many nonprofits, securing funding is only one piece of the puzzle. After obtaining grants, they often face more hurdles including restrictive grant terms, reporting burdens, and short-term funding—challenges that pull focus from their work in community.
Ken Birdwell, our founder, recognized these obstacles and worked with three Puget Sound organizations to co-design a flexible model that puts decision-making power into the hands of nonprofits. Fifteen years in, we remain committed to this approach, investing in our nonprofit partners in ways they’ve identified as the most impactful.
We believe that philanthropy can and should adopt this approach, building transparent relationships with nonprofits to help accelerate their work and their impact. By remaining responsive to the funding needs of our partners, we help them build capacity, improve infrastructure, and explore new revenue streams, setting them up for sustainable success.
New Paths for Development
Amidst a decline in charitable giving, nonprofits are increasingly diversifying revenue sources, opening up pathways for unrestricted funding.
Several of our nonprofit partners have used multi-year, capacity-building funding from Magic Cabinet to build critical infrastructure within their organizations. This has included funding new or existing staff, fine-tuning fundraising, and expanding services—projects that have set them on a sustainable path for the future.
Southeast Seattle Education Coalition: Strategic Staffing for Long-Term Success
Southeast Seattle Education Coalition (SESEC) was founded in 2012 with a vision to rally communities of color and allies to improve Southeast Seattle schools so that all students and families are empowered to succeed.
Soon after becoming a Magic Cabinet Rainer Cohort grantee, SESEC underwent a leadership transition and restructured as a policy and advocacy-focused organization. They used early Magic Cabinet grants to hire several key roles, focused on streamlining and maintaining consistency within their services, deepening their bench of offerings, and expanding their model across the Puget Sound.
SESEC has historically served as a fiscal sponsor for a few special projects, usually at a rate of one per year. With streamlined systems and additional staff support, they were positioned to take on two additional fiscal sponsorships, gaining a steady source of unrestricted income.
Their work to build community advocacy capacity through training has become another potential revenue source for the organization. After pivoting to internal trainers to ensure consistency across their programming, they’re resourced to scale this work by developing fee-for-service projects for community nonprofit organizations serving areas outside of Southeast Seattle.
To date, SESEC has used 75% of Magic Cabinet’s cohort grant funds to introduce new roles within the organization. Their strategic approach to staffing has positioned them to offer consistent, high-quality programming and services to their community while capitalizing on opportunities for organizational growth.
"[Magic Cabinet’s] funding has allowed us to center quality of services versus being only quantity-focused. Our growth has been intentional, giving us the opportunity to influence systemic change and ensure we are actively working toward education equity."
The Tenderloin Museum: Build From What You Have
The Tenderloin Museum has long been a pillar of the Bay Area community, offering educational and artistic programming to heighten public awareness of the Tenderloin’s history and vibrancy.
As one of Magic Cabinet’s earliest grantees, the Tenderloin Museum used capacity-building funding to roll out a three-pronged staff development plan that included compensation increases, a robust benefits package, and professional development for all staff. This plan would give staff more tools for success and help the organization retain staff and institutional knowledge.
Several grants were used to hire key roles for the organization, expanding their capacity to create and manage programming and freeing up their Executive Director to focus on development and fundraising for a capital campaign.
The capital campaign would enable the museum to acquire and renovate an adjacent space to host an expanded museum exhibition, art gallery, and private events. This addition is set to yield additional operational income for the organization and boost its existing donor base. During their time in a Magic Cabinet Cohort, the Tenderloin Museum has received four new grants from major funders, identified several new donors, and developed new fundraising materials for their capital campaign.
“[We] may have not been able to [take on risky projects] without having that anchor. It would have been too risky to put all this attention and resources behind this thing without this groundswell of support.”
The Latina Center: People Power is Paramount
Since 2000, Bay Area nonprofit The Latina Center has been on a mission to improve the health and well-being of the Latino community by providing leadership and personal development opportunities. With a culturally relevant and trauma-informed approach, the center invests in the leadership, health, well-being and economic empowerment of Latinas and their families including parents, domestic violence survivors, and future leaders.
Before joining Magic Cabinet’s Richmond Cohort, The Latina Center was run by the Founder and Executive Director with a small staff and support from volunteers. As the organization grew its programs, and with Magic Cabinet’s responsive support, the ED focused on filling critical staff positions to manage day-to-day operations, steward fundraising, and create systems to maintain financial wellness.
This influx of human power created a ripple effect throughout the organization. Streamlined financial, communications, and data management systems lifted a weight off the ED’s shoulders. It also boosted her confidence in the organization’s health, inspiring her to begin applying for government grants.
During its time with Magic Cabinet, the Latina Center has increased its income from $600K annually to over $1M. This is the result of increased organizational capacity, an influx of county and federal grant funding, and an individual donor campaign. The organization has also expanded its service area to include the East Contra Costa County community.
“Magic Cabinet respects our approach and the trust we have with our community. With their financial support and technical assistance over five years, and through our cohort of Richmond partners, we’ve grown our staff and our capacity to serve and have even leveraged new funding sources. I hope the giving world learns from their model and their long-term and grounded approach.”
Investing in Innovation
By prioritizing multi-year commitments, we’re able to move nimbly in support of our nonprofit partners and the communities they serve. The magic of our approach lies in its ability to bridge the gap where more restrictive grant processes miss the mark. It also provides a secure runway for organizations to strengthen their infrastructure and innovate with the stability of long-term support.
We’re excited to explore opportunities with other funders interested in adopting this approach or co-designing a more innovative model. If that sounds like you, email us at partnerships@magiccabinet.org.
