The Choice of Narrative: Are CDFIs fixers of a broken world or builders of a better one?

Dear F|A Clients and the broader CDFI community,

Many of you have reached out to get our 'take' on whether you need to modify your narrative for the FY '25 CDFI Program Round grants in light of the Administration's directive for federal agencies to submit by February 10th, a “comprehensive analysis of all of their Federal financial assistance programs” to identify programs that could conflict with the president's executive orders.

We welcome that discussion because we share your passion for the mission to create a more inclusive and equitable economy. You would agree that the narrative issue encompasses more than just writing grants; it's part of your overall external communications strategy. To contextualize the issue, there has been extensive discussion and valuable lessons from forward-thinking foundations and nonprofits that have started changing how they think and do external communications. 

In September 2024, participants at a private, non-political gathering of philanthropic foundation executives and their communications officers learned about advocacy groups that adopted a 'next narrative' communication strategy. This approach successfully united liberals and conservatives to achieve historic victories on issues that traditional methods had been unable to resolve.

For example, in 2018, Desmond Meade of the Florida Restoration Rights Coalition led a historic campaign using 'next narrative' appeals that overturned 150-year-old laws and restored rights to 1.4 million Floridians who had served their time for past crimes and earned their right to full citizenship. The bottom line is that it is possible to demonstrate that people of all political backgrounds can come together to support social progress in a way that honors and respects everyone’s values. 

So, what exactly is the 'next narrative' strategy? Fundamentally, it is about shifting from the narrative identity of being "fixers of a broken world" to the next narrative of being "builders of a better one." As explained in Fixers to Builders, by Trabian Shorters, published in January by the Stanford Social Innovation Review, there are four 'common denominators' behind the 'next narrative' appeals:

1. People want to be defined by their aspirations, not their problems. Rather than starting with a problem statement and how to “fix a broken world,” next narratives assume that the sector exists to “build a better world.” Shorters argues that the entire social impact sector has been overly focused on “the problem statement,” which leads to labeling entire populations based on their problems. With relevance to the CDFI industry, he observes that the nonprofit sector often defines communities solely as “low-income,” which can have unintended consequences as it stigmatizes these populations. They become defined only by their socioeconomic status, viewed as behind, below, or lesser than what is considered socially normal.

2. You can love your country and still want to build better systems. "Progressives regularly describe America as racist, sexist, classist, toxic, and capitalist. These may be true, but just as calling impoverished people poor or incarcerated people criminal may be technically true, they’re not the whole truth."  Fixers focus on problems; builders focus on 'asset framing,' a way of thinking and communicating that defines people by their assets and aspirations.

3. Jargon only communicates to your in-group. Next narrative strategies communicate with people in plain language, focusing on passions rather than politics.

4. Fear is not a 'progress' emotion. In politics, the left and the right often use fear to rally support. This approach cultivates anxiety and gradually erodes optimism. Next, narrative strategies emphasize empathy, genuine hope, and a growth mindset. 

I urge you to read the entire article. The 'new narrative' communications strategy is already showing success that by shifting the frame from a 'fixer' to a 'builder,' all people will see that granting rights and privileges is an essential commitment, not merely an act of kindness or charity. It also gives nonprofit organizations the chance to make their communications more effective.

But wait, there's more! Just yesterday, I came across an outstanding article by Elizabeth Gilbert Kaetzelon on LinkedIn titled "How Communicators Can Meet this Narrative Moment." Kaetzelon echoes the findings in the SSIR article that language and storytelling can bridge divides and foster the potential for change. Plus, she offers some excellent resources you can use as we craft your application narrative together. For starters, check out the Diversity, Equity, and Inclusion Messaging Guide from Resource Impact by the Raben Group. That's just one of a dozen excellent 'think pieces' with practical recommendations for evolving your external communications strategy.

Next Steps? Share these resources with senior staff and your Development and Communications people—like now! Whatever path you choose, know we’re in your corner and available to discuss at your convenience. Thank you!