{"id":"a9a3adf9-c68c-4a56-a1ee-b1c163671332","slug":"s11e47-the-social-safety-net-and-financial","subject":"s11e47: The Social Safety Net and... Financial Services?","title":"The Social Safety Net and... Financial Services?","publish_date":"2022-05-04T16:47:16.805119+00:00","year":2022,"month":5,"season":11,"episode":47,"episode_label":"s11e47","canonical_url":"https://newsletter.danhon.com/archive/s11e47-the-social-safety-net-and-financial/","is_premium":0,"word_count":1291,"body_html":"<h1>0.0 Context Setting</h1>\n<p>It's a sunny Wednesday, 4 May 2022 in Portland, Oregon and this morning's chocolate malt-o-meal was made to the approval of the smaller one, and the bigger one is lugging their 'cello to school.</p>\n<p>The morning would probably have gone a little better if I had done more cleanup after dinner, but on the other hand it was very important that my wife and I repeatedly fall off things playing co-op Sackboy.</p>\n<p>I am going to try to race the 15 minute sand timer today. The previous few episodes have started to take loo long.</p>\n<hr />\n<p><strong>Book plug:</strong> Things That Caught My Attention, Volume 1 is out now. <a href=\"https://store.verylittlegravitas.com/l/ThingsVol1/subscriber\">Subscribers get 20% off</a>. Erika Hall has done <a href=\"https://twitter.com/mulegirl/status/1506402414865240067\">just enough research</a> to say that if you like good writing, you'll like it.</p>\n<p>[Paid supporters get a free copy]({{ upgrade_url }}), which is excellent value for money. If you haven't gotten yours, then drop me a line and I'll make sure you're sorted out.</p>\n<hr />\n<h1>1.0 Some Things That Caught My Attention</h1>\n<h2>1.1 Financial Services and the Safety Net</h2>\n<p>I mentioned the other day that I've been having conversations with a Large Philanthropic Foundation about the &quot;social safety net&quot; and what could (might?) be done to improve the performance of said net, clarification about the objectives of such net and so on. Something that came up in our discussion on Monday has stuck in my head, so presumably it's caught my attention.</p>\n<p>There is this thing that happens (citation needed for all that follows, more that this is a weak signal that I think is deserving of another look, or at least talking to people who <em>have</em> done that look) when A Precipitating Event happens to spur mutual aid and/or local action. It can be something like the latest evidence of egregious racial injustice, the latest, tired exoneration and defense of a serial abuser, collective indifference in the face of long-suffered pain.</p>\n<p>This new thing that happens is that a bunch of enterprising people get together and start a Google Doc. I've seen this most in the popping up of <a href=\"https://www.dsausa.org/chapters/\">chapters of the Democratic Socialists of America</a>. It feels like every single time the easiest, fastest way for a bunch of people unconnected, other than through common cause, to organize.</p>\n<p>And so my brain has been thinking about where mutual aid, local, distributed, yadda yadda organizations fit in to provide help where it's needed when it's needed and how they successfully perform. Now, your baby technologist approach to this would be like:</p>\n<ul>\n<li>wow, look at all those self-organizing groups using Google Docs!</li>\n<li>... that seems horribly inefficient, Google Docs doesn't really support structured data, there's so much useful information here!</li>\n<li>... let's create a new tool for nascent DSAs and other local, swarm-mobilized mutual aid organizations to use!</li>\n</ul>\n<p>and that's why they're a baby technologist because they're assuming (sorry, I am stereotyping) that a new tool will fix things without necessarily thinking about why people keep coming back to Google Docs. I mean, give the organisers some credit: they <em>chose</em> to use Google Docs and they may even be smart enough to choose it in <em>spite</em> of those deficiencies you might see!</p>\n<p>I mean, in Docs' favour: it's now the lowest common denominator. Slack might want to claim the phrase, but I think it's as fair to say that Google Docs is <em>where work happens</em>, it's the place that enough people go to to spin up jotting down some thoughts <em>and</em> it's collaborative <em>and</em> all you need is a Google account, which many (yes, not all) people have. Plus, you can even go in as an anonymous raccoon along with 150 other anonymous raccoons, if you want.</p>\n<p>So. I wouldn't look at Google Docs. Replacing Google Docs is both a red herring and a white whale so you could split the difference and call it some sort of pink aquatic half-mammal. But I might look at ways of extracting data from Google Docs, or ways of better integrating Google Docs into... other infrastructure that mutual aid organizations need.</p>\n<p>Following that thread, I had these questions:</p>\n<ul>\n<li>What's the Stripe for mutual aid look like? You've got one-click incorporation, where's your one-click 501(c)(3)? (Again, these may exist. I am asking, I'm not implying they don't).</li>\n<li>Yes, one-click incorporation and one-click 501(c)(3)s are different and the latter are harder, but that also means the latter is probably <em>worth more</em>. That's before you get into &quot;is setting up a 501(c)(3) worth it&quot;?</li>\n<li>Another one: backing services. Stripe gets you down the road of &quot;what sort of specialized financial services do mutual aid organizations need?&quot;</li>\n<li>We get this swarming behavior, there's one example where the Sauron Eye of Internet Benevolence chances upon today's Main Good Deed and then suddenly a non-profit or person in need who had a target of about $10,000 has $100,000 within 24 hours, and now they've actually <em>got problems</em> because they don't have the infrastructure (organizationally, or in accounting, or whatever) to physically or bureaucratically deal with that amount of money. They would need to hire someone to deal with the money, to the extent they can't really spend it yet? I think the example I remember was for a bail bond non-profit.</li>\n<li>What does a credit union for mutual aid organizations look like? How do you smooth out swarming behavior? Did you talk to GoFundMe and figure out exactly what's missing, and what a Proper GoFundMe would be for, if GoFundMe has not given in and accepted that they've accidentally become a social safety net funding institution?</li>\n<li>And then there's &quot;discoverability&quot; for &quot;all the stuff that isn't being funded&quot; and yes it's hard, and yet also, it feels like... looking at the problem -- whatever that is -- the wrong way.</li>\n</ul>\n<p>All of this, in the context of course, of a philanthropic organization looking to place the stereotypical Large Bets on things that will Make A Disruptive Difference. So there's me, thinking: well, in America, if part of the social safety net is private, peer-to-peer work outside of what government <em>should</em> be doing (and is failing at in general, but in pockets, getting better -- too little, and too late in the personal), then what's missing?</p>\n<p>One of the last thoughts I had was my experience with my late father-in-law's community food network, or food bank. They're good people. They raise money, they have food at a church. They're in a small town, run by mainly older people. They're doing good work. And... could they be doing more, or be doing more differently? What would help them in their mission to get food to those who need it, to ensure the people don't go hungry?</p>\n<p>I keep coming back to the Stripe thing as an analogy, or better yet, Square, because more people have had experience with Square at point-of-sale. What's the Square for these types of organizations? Apart from accepting donations, what if every food bank could also issue preloaded Visa cards? What if any mutual aid organization could issue cash through preloaded cards? Would that be helpful? What would be needed? And that's where I kept coming back to &quot;financial services geared towards the safety net&quot;. Maybe that would help. It might not be sexy or obvious and might even be offensive. But it definitely caught my attention.</p>\n<hr />\n<h2>Newsletter-thinking-as-a-service</h2>\n<p>My new on-demand brain-exploding consulting service is live, and I've made my first bookings.</p>\n<p>If you read this newsletter, it's like &quot;we get to talk, newsletter-style, about what you choose&quot; that your boss pays for, so <a href=\"https://calendly.com/verylittlegravitas/lets-explode-brains?month=2022-05&amp;date=2022-05-17\">check out my availability</a>, or drop me a line to find out more.</p>\n<hr />\n<p>That's it for today, and I came in at around 22 minutes.</p>\n<p>How are you doing?</p>\n<p>Best,</p>\n<p>Dan</p>\n","body_text":"0.0 Context Setting\n\nIt's a sunny Wednesday, 4 May 2022 in Portland, Oregon and this morning's chocolate malt-o-meal was made to the approval of the smaller one, and the bigger one is lugging their 'cello to school.\n\nThe morning would probably have gone a little better if I had done more cleanup after dinner, but on the other hand it was very important that my wife and I repeatedly fall off things playing co-op Sackboy.\n\nI am going to try to race the 15 minute sand timer today. The previous few episodes have started to take loo long.\n\nBook plug:\nThings That Caught My Attention, Volume 1 is out now.\nSubscribers get 20% off\n. Erika Hall has done\njust enough research\nto say that if you like good writing, you'll like it.\n\n[Paid supporters get a free copy]({{ upgrade_url }}), which is excellent value for money. If you haven't gotten yours, then drop me a line and I'll make sure you're sorted out.\n\n1.0 Some Things That Caught My Attention\n\n1.1 Financial Services and the Safety Net\n\nI mentioned the other day that I've been having conversations with a Large Philanthropic Foundation about the \"social safety net\" and what could (might?) be done to improve the performance of said net, clarification about the objectives of such net and so on. Something that came up in our discussion on Monday has stuck in my head, so presumably it's caught my attention.\n\nThere is this thing that happens (citation needed for all that follows, more that this is a weak signal that I think is deserving of another look, or at least talking to people who\nhave\ndone that look) when A Precipitating Event happens to spur mutual aid and/or local action. It can be something like the latest evidence of egregious racial injustice, the latest, tired exoneration and defense of a serial abuser, collective indifference in the face of long-suffered pain.\n\nThis new thing that happens is that a bunch of enterprising people get together and start a Google Doc. I've seen this most in the popping up of\nchapters of the Democratic Socialists of America\n. It feels like every single time the easiest, fastest way for a bunch of people unconnected, other than through common cause, to organize.\n\nAnd so my brain has been thinking about where mutual aid, local, distributed, yadda yadda organizations fit in to provide help where it's needed when it's needed and how they successfully perform. Now, your baby technologist approach to this would be like:\n\nwow, look at all those self-organizing groups using Google Docs!\n\n... that seems horribly inefficient, Google Docs doesn't really support structured data, there's so much useful information here!\n\n... let's create a new tool for nascent DSAs and other local, swarm-mobilized mutual aid organizations to use!\n\nand that's why they're a baby technologist because they're assuming (sorry, I am stereotyping) that a new tool will fix things without necessarily thinking about why people keep coming back to Google Docs. I mean, give the organisers some credit: they\nchose\nto use Google Docs and they may even be smart enough to choose it in\nspite\nof those deficiencies you might see!\n\nI mean, in Docs' favour: it's now the lowest common denominator. Slack might want to claim the phrase, but I think it's as fair to say that Google Docs is\nwhere work happens\n, it's the place that enough people go to to spin up jotting down some thoughts\nand\nit's collaborative\nand\nall you need is a Google account, which many (yes, not all) people have. Plus, you can even go in as an anonymous raccoon along with 150 other anonymous raccoons, if you want.\n\nSo. I wouldn't look at Google Docs. Replacing Google Docs is both a red herring and a white whale so you could split the difference and call it some sort of pink aquatic half-mammal. But I might look at ways of extracting data from Google Docs, or ways of better integrating Google Docs into... other infrastructure that mutual aid organizations need.\n\nFollowing that thread, I had these questions:\n\nWhat's the Stripe for mutual aid look like? You've got one-click incorporation, where's your one-click 501(c)(3)? (Again, these may exist. I am asking, I'm not implying they don't).\n\nYes, one-click incorporation and one-click 501(c)(3)s are different and the latter are harder, but that also means the latter is probably\nworth more\n. That's before you get into \"is setting up a 501(c)(3) worth it\"?\n\nAnother one: backing services. Stripe gets you down the road of \"what sort of specialized financial services do mutual aid organizations need?\"\n\nWe get this swarming behavior, there's one example where the Sauron Eye of Internet Benevolence chances upon today's Main Good Deed and then suddenly a non-profit or person in need who had a target of about $10,000 has $100,000 within 24 hours, and now they've actually\ngot problems\nbecause they don't have the infrastructure (organizationally, or in accounting, or whatever) to physically or bureaucratically deal with that amount of money. They would need to hire someone to deal with the money, to the extent they can't really spend it yet? I think the example I remember was for a bail bond non-profit.\n\nWhat does a credit union for mutual aid organizations look like? How do you smooth out swarming behavior? Did you talk to GoFundMe and figure out exactly what's missing, and what a Proper GoFundMe would be for, if GoFundMe has not given in and accepted that they've accidentally become a social safety net funding institution?\n\nAnd then there's \"discoverability\" for \"all the stuff that isn't being funded\" and yes it's hard, and yet also, it feels like... looking at the problem -- whatever that is -- the wrong way.\n\nAll of this, in the context of course, of a philanthropic organization looking to place the stereotypical Large Bets on things that will Make A Disruptive Difference. So there's me, thinking: well, in America, if part of the social safety net is private, peer-to-peer work outside of what government\nshould\nbe doing (and is failing at in general, but in pockets, getting better -- too little, and too late in the personal), then what's missing?\n\nOne of the last thoughts I had was my experience with my late father-in-law's community food network, or food bank. They're good people. They raise money, they have food at a church. They're in a small town, run by mainly older people. They're doing good work. And... could they be doing more, or be doing more differently? What would help them in their mission to get food to those who need it, to ensure the people don't go hungry?\n\nI keep coming back to the Stripe thing as an analogy, or better yet, Square, because more people have had experience with Square at point-of-sale. What's the Square for these types of organizations? Apart from accepting donations, what if every food bank could also issue preloaded Visa cards? What if any mutual aid organization could issue cash through preloaded cards? Would that be helpful? What would be needed? And that's where I kept coming back to \"financial services geared towards the safety net\". Maybe that would help. It might not be sexy or obvious and might even be offensive. But it definitely caught my attention.\n\nNewsletter-thinking-as-a-service\n\nMy new on-demand brain-exploding consulting service is live, and I've made my first bookings.\n\nIf you read this newsletter, it's like \"we get to talk, newsletter-style, about what you choose\" that your boss pays for, so\ncheck out my availability\n, or drop me a line to find out more.\n\nThat's it for today, and I came in at around 22 minutes.\n\nHow are you doing?\n\nBest,\n\nDan","raw_format":"markdown","source":"app","summary":"This issue explores what happens when grassroots mutual aid movements—sparked by social crises and organized through surprisingly low-tech tools like Google Docs—encounter the gap between immediate community response and sustainable infrastructure. Rather than building new tools to replace Google Docs, the author wonders what specialized financial services mutual aid organizations actually need: one-click 501(c)(3) formation, credit union structures designed for sudden funding surges, better data integration, and systems to match unmet needs with available resources. The throughline is a critique of the typical tech-solutionist instinct to optimize tools when the real problem is that mutual aid has become a de facto piece of America's privatized social safety net without the institutional support systems that would let it function at scale.","reading_minutes":6,"links":[{"url":"https://store.verylittlegravitas.com/l/ThingsVol1/subscriber","normalized_url":"https://store.verylittlegravitas.com/l/ThingsVol1/subscriber","domain":"verylittlegravitas.com","anchor_text":"Subscribers get 20% off","is_archive":0,"archive_url":null,"archive_service":null,"category":"self"},{"url":"https://twitter.com/mulegirl/status/1506402414865240067","normalized_url":"https://twitter.com/mulegirl/status/1506402414865240067","domain":"twitter.com","anchor_text":"just enough research","is_archive":0,"archive_url":null,"archive_service":null,"category":"external"},{"url":"https://www.dsausa.org/chapters/","normalized_url":"https://dsausa.org/chapters","domain":"dsausa.org","anchor_text":"chapters of the Democratic Socialists of America","is_archive":0,"archive_url":null,"archive_service":null,"category":"external"},{"url":"https://calendly.com/verylittlegravitas/lets-explode-brains?month=2022-05&date=2022-05-17","normalized_url":"https://calendly.com/verylittlegravitas/lets-explode-brains?month=2022-05&date=2022-05-17","domain":"calendly.com","anchor_text":"check out my availability","is_archive":0,"archive_url":null,"archive_service":null,"category":"plumbing"}],"sections":[{"id":2213,"ord":0,"number":"0.0","heading":"Context Setting","level":1,"word_count":163},{"id":2214,"ord":1,"number":"1.0","heading":"Some Things That Caught My Attention","level":1,"word_count":6},{"id":2215,"ord":2,"number":"1.1","heading":"Financial Services and the Safety Net","level":2,"word_count":1050},{"id":2216,"ord":3,"number":null,"heading":"Newsletter-thinking-as-a-service","level":2,"word_count":69}]}