Philanthropy & Prop 50: What Funders Can Learn for 2026

By Rebecca Hamburg, Chief Impact Officer, California Donor Table

Note: This reflection is the conclusion of a larger series about philanthropy and Prop 50, including an oped about the myriad ways philanthropy can support democracy work like ballot initiatives, as well as an interview with Rebecca and MOVE the Valley about how philanthropic dollars help protect elections.

California voters more than understood the assignment for November’s special election by overwhelmingly passing the California Election Rigging Response Act. Voters up and down the state shattered low voter turnout expectations. For Californians, Proposition 50 wasn’t just a ballot measure — it was a democracy drill fueling the next fight for the 2026 midterm elections. But here’s the question I’ve been asking: Did philanthropy understand the assignment, too?

When the special election was announced in August — a rare vote authorizing new congressional maps mid-cycle — we recognized it as California’s best shot to counter the President’s redistricting power grab in states like Texas. It was also a stress test for 2026. And what the passage of Proposition 50 revealed wasn’t only strong voter support; it was the depth of grassroots organizing capacity driving the campaign — and proof that when philanthropy invests in long-term power building and engagement, communities win.

At California Donor Table, we educate donors and foundations about what it takes to fund power, not just programs. That means giving across tax statuses: individual donors can support more than just charities — they can fund 501(c)(4)s, political action committees, and independent expenditures.

Private foundations can fund 501(c)(3) charities: community engagement, narrative building, research, media, convenings, and even efforts that include lobbying using existing IRS rules like the project grant rule. They can also fund the charitable and educational work of non-charities, like ©(4)s. Public foundations can go a step further and support ballot initiatives and other lobbying efforts directly, taking positions to support the passage while also supporting voter engagement generally.

In the Proposition 50 democracy drill, we saw funders push those boundaries in encouraging ways. California Community Foundation gave over $1 million to support passage of Prop 50, including $200,000 to the Progressive Era Issues Committee (California Donor Table’s ballot measure committee) within weeks of the campaign kickoff, which helped get canvassers in the streets as early as September 8th. And other community foundations, like the Fund for Santa Barbara, publicly endorsed the measure and continued to back the grassroots groups that engage voters year-round.

California Donor Table Fund, our c3 arm, invested $300,000 in nonpartisan voter engagement and election protection (the majority of our investments — $1.75 million — went directly to passing Prop 50.) These dollars funded groups like M.O.V.E. the Valley for non-partisan phone banking to voters in their native languages, including Spanish, Korean, Vietnamese, and Chinese, to ensure they understood the voting process, knew about their polling location, and had the support they needed for their vote to be counted. It also helped disabled voters ensure they could schedule the transportation services they need to reach their polling place and remove accessibility barriers. Additionally, poll watchers staffed polling locations throughout the San Joaquin Valley to troubleshoot and ensure voters could cast their ballots..

This is what durable civic infrastructure looks like. These efforts were spun up to capacity in a matter of weeks because of long-term efforts to engage these communities. These organizations are the reason California continues to incubate and improve inclusive democracy — and these activities deserve investment at ten times the current level.

Still, my honest assessment is that too many foundations froze. I spoke with a nonprofit law expert who agreed that the reluctance wasn’t based on legal limits, it was based on vibes. Proposition 50 “felt too partisan,” some said. The sector’s biggest constraint isn’t the IRS; it’s our habit of complying in advance with rules that don’t exist.

Most of the real limits on democracy funding are cultural, not statutory. Legal education — and clearer assessment of what we’re afraid of and willing to risk — is essential if we’re serious about meeting the moment. We need to be as courageous as our community partners.

Most of the real limits on democracy funding are cultural, not statutory. In many cases, the issue isn’t a lack of legal clarity, but an overinflated sense of the risks of fully using what the rules allow. The laws become a line they’re afraid to go anywhere near, instead of a line they’re allowed to walk right up to. Legal education, paired with a more honest reckoning with our own risk tolerance, is essential if we’re serious about meeting the moment. We need to be as courageous as our community partners.

Proposition 50’s victory opens the door to a stronger, more representative democracy — one where Californians can elect leaders committed to standing up for the working class, expanding care, protecting rights, and strengthening the social safety net. Realizing that vision will take early, coordinated philanthropic investment.

Here’s what funders can do now:

• Educate boards that civic engagement and governance pipelines are legitimate charitable purposes.
• Book trainings with experts like Alliance for Justice. Invite your lawyers and your trustees.
• Join funder alignment tables like California Donor Table, aligning in California, the State Leadership Project’s Funder Strategy Group, or the Block & Build Funder Coalition to coordinate giving nationally.
• Work through regional associations, Northern California Grantmakers, SoCal Grantmakers, Catalyst of San Diego & Imperial Counties, to align c(3) dollars with broader pro-democracy strategies.

This is internal organizing for philanthropy, the kind we often ask of our grantees.

California just reminded the nation that democracy isn’t something we inherit — it’s something we build, protect, and practice. Voters did their part. Organizers did theirs.

Now it’s philanthropy’s turn.

The 2026 midterm elections are already underway, and every dollar, board decision, and legal clarification will shape what’s possible next year. If we meet this moment with courage instead of caution, philanthropy can help ensure that California’s story of inclusion, participation, and power — becomes the country’s story too.