Frequently Asked Questions

General

Founded in September 2020, Possibility Labs is a movement-centered platform that transforms how resources move into the diverse ecosystem of community power-builders. We co-create flexible solutions through reimagined investment strategies and streamlined information infrastructure to accelerate the emergence of a just economy. Current capital systems are rooted in white supremacist practices that prevent trailblazers from activating resources with complexity and at scale proportional to the racial, gender, economic, and climate crises that they are solving for. Possibility Labs is pushing the boundaries of possibility in our mission to build and modernize the vital underpinning that enables bold community-led models in sustaining power and wealth for future generations.

In no order, we focus on social, environmental, gender, racial, and economic justice.

We are headquartered in the financial district of San Francisco, California.

We are fully remote and have team members distributed across North America, with team members in the U.S. and Mexico.

The Possibility Portal is a proprietary all-in-one online portal that integrates vital business and financial information as well as digital applications to grow an organization’s capacity and streamline decision-making strategically, sustainably, and efficiently.

Fiscal Sponsorship

As a national intermediary, we provide communities, movements, grassroot organizations, or other projects with the flexibility to benefit from our tax-exempt status by becoming their fiscal sponsors and acting as the legal entity receiving and deploying funds on their behalf. We offer Model A and Model C fiscal sponsorship options, which can include administrative support, human resources, and compliance oversight.

Our Partner Service team works closely with organizations to advise on entity and structure guidance, strategic co-creation, and other administrative support. They can be reached at [email protected]

The initial onboarding process takes about 3 weeks.

Possibility Labs grantmaking process takes 3-4 business days after due diligence completion, contingent upon responsiveness of grantee in providing any necessary information.

Possibility Labs practices trust-based philanthropy, meaning we focus on building mutually accountable relationships with our fiscal partners and thus, do not enforce any formal reporting requirements.

Donor Advised Funds

Donor-advised funds began to grow in popularity in the 1990s because they enabled donors to have the infrastructure of their own grant making foundation without all the upkeep. Through a Donor Advised Fund, donors make charitable gifts to a sponsoring organization (like Possibility Labs) and then recommend how to redistribute those funds to organizations and movements. The sponsoring organization conducts due diligence on donor funding decisions and provides the resourcing infrastructure, lowering the inefficiencies of checkbook giving.

Possibility Labs has reimagined the Donor Advised Fund as a vehicle for social justice and change, building a DAF that is focused on impact in every aspect:

  • We diversify an organization’s capital stack by deploying grants, recoverable grants, loans, and guarantees.
  • We require a 25% payout and encourage investing 75% of remaining assets in BIPOC-led community wealth building activities.
  • We will soon provide community-focused philanthropic advising, serving as a bridge between BIPOC-led justice movements and the growing number of high net-worth funders who want to unlock systemic change.

Theory of Change

Inspired by the Just Transition for Philanthropy framework by Nwamaka Agbo, we encourage and partner with donors to move away from a traditional and extractive DAF towards a regenerative giving, investing, and deployment practice that can help us collectively transition to a solidarity economy. Alongside the standard tax benefits from more traditional DAFs, your investment becomes instrumental in funding change for BIPOC communities long-term and helping movements as they scale social and environmental justice.

Learn More About Restorative Economics

Integrated capital offers organizations a combination of different capital tools like grants, loans, investments, guarantees, and related, non-financial resources like advising and networks. These funding strategies help communities, movements, and donors obtain the diverse capital necessary to effect systematic change and transition to a new economy.

Inspired by the principles of non-extractive finance practices by Seed Commons, “non-extractive finance” is subordinated to the needs of people, finance that acts democratically by leaving control in the hands of communities and regenerates by not extracting from communities but allowing them flourish under their own control.” Learn more www.seedcommons.org/about-seed-commons/seed-commons-approach-to-non-extractive-finance/

Inspired by practical recommendations on how to implement trust-based grantmaking practices by The Trust-Based Philanthropy Project to address the inherent power imbalances between foundations and nonprofits, trust-based philanthropy helps advance equity, shift power, and build mutually accountable relationships. The six grantmaking practices are a tangible way to start putting trust-based values into action: give multi-year unrestricted funding, do the vetting homework, simplify and streamline paperwork, be transparent and responsive, solicit and act on feedback, and offer non-monetary support. Learn more www.trustbasedphilanthropy.org/