Why Philanthropy Must See Disruption Not As a Detour But As an Opportunity to Positively Transform Systems

When crises hit, philanthropy often defaults to stabilizing what exists—filling gaps and restoring normalcy. But what if disruption could be a portal to something better? In this Stanford Social Innovation Review article, we argue that funders can use moments of turmoil to advance lasting systems change. Drawing on lessons from The James Irvine Foundation's Fair Work initiative—where pandemic disruption led to a permanent shift in California's worker protection infrastructure—we outline three strategies for "bouncing forward": shifting mindsets from crisis response to strategic opportunity, sharing power by letting communities guide direction, and acting boldly to fund systemic change rather than stopgaps.

The piece offers both evidence and practical guidance for funders navigating today's turbulent landscape, where rising authoritarianism, backlash to equity work, and widespread burnout demand strategic, community-centered responses.