Beyond DAFs: How Collective Action Funds and Fiscal Sponsorship Can Accelerate Corporate Impact

Corporate social impact teams are under pressure to move faster, collaborate better, and drive systems-level change. That starts with choosing the right corporate giving strategy — one that fits your goals, not just the one that’s most familiar. Donor-advised funds (DAFs) are a popular and effective tool, and for good reason. But they’re not the only option. At Tides, we’ve partnered with companies to go further by leveraging collective action funds (CAFs) and single entity funds (SEFs, also known as Model C fiscal sponsorship) — two approaches to corporate philanthropy designed for the kind of bold, strategic work that today’s impact teams are pursuing.

What Are Collective Action Funds and Single Entity Funds?

Collective action funds bring to life the idea of “going further together.” CAFs allow multiple donors to pool resources around a shared purpose, making them a natural fit for strategies rooted in collaboration, scale, and systems change. Through a CAF, companies can work together — even across industries — to move the needle on large-scale issues tied to their values and mission. 

CAFs also bring an added layer of expertise and equity through an independent advisory committee. These committees are made up of community leaders and subject matter experts identified by the funders and entrusted with recommending how grants are distributed. That means grantmaking decisions are informed by the people closest to the issues. 

Corporate social impact teams should consider a CAF when they want to launch pooled grantmaking programs with other companies that share common goals or when they want to center community voice in how funding decisions get made. 

Single entity funds (often called Model C fiscal sponsorship) take a different approach. SEFs allow teams to collect tax-deductible contributions and launch charitable initiatives within their organizations without the administrative burden of setting up a full 501(c)(3) nonprofit. They make it possible for companies that aren’t registered as a nonprofit to stand up impactful charitable programs quickly and efficiently. 

With an SEF, groups can focus their limited capacity on programming and community engagement while Tides handles compliance and financial management. SEFs also help teams clearly separate charitable funds from the rest of their organization’s budget and revenue. If your company is implementing social impact programs and needs charitable funding to support them, an SEF is a strong fit.

Purpose Through Collaboration: The Action for Sustainable Derivatives Impact Fund

BSR, a sustainable business network that provides global insights and strategic advisory services to nearly 300 member companies in Asia, Europe, and North America, has long understood that collaboration and inclusion are business necessities — especially when it comes to complex global challenges like supply chain sustainability. No single company can solve these problems alone.

In 2019, in partnership with supply chain sustainability expert Transitions, BSR helped establish Action for Sustainable Derivatives (ASD), a collective of 40+ companies across Europe, Asia, and North America committed to transforming the supply and production of palm oil derivatives. ASD’s impact goals center on building a more sustainable palm oil system through environmental resilience, human rights protections, smallholder support, and sector alignment. 

In 2022, BSR identified Tides’ CAF model as the right vehicle to translate ASD’s collective purpose into action. Through the ASD Impact Fund, 17 member companies — many of them market competitors — pool resources to activate ASD’s pillar of positive impact. The Fund creates space and structure for innovation through collaboration. All companies can participate regardless of size and budget, and by acting together, they take bolder action and make greater progress than any of them could alone. Gattefossé, a leading global provider of specialty ingredients for the health and beauty industries, has been a long-time contributor to the ASD Impact Fund.

The results are tangible. The Fund has collected nearly $2 million, and under the guidance of its independent advisory committee, has distributed over $1.7 million in grants to support sustainability and human rights in primary derivatives production regions. 

One standout partnership is with Kaleka’s Mosaik Initiative in Indonesia. In just three years, Kaleka has protected nearly 15,000 acres of forest and restored almost 750 acres of degraded land, certified over 1,000 farmers in responsible farming practices, increased coordination across Seruyan’s palm oil unions, and trained eight labor unions — involving over 20 companies — on collective bargaining and gender inclusion. Kaleka has also created trainings for paralegals to defend human rights and developed local infrastructure like nursery centers and farmers associations to sustain and grow impact over time. “Even from further downstream in the palm supply chain, ASD members have a real opportunity to drive tangible change where it matters most — on the ground. By coming together, we can channel diverse resourcing capacities to create impact in sourcing regions that members may not be able to reach on their own,” explains Alexandra Kolev, ASD Project Manager at BSR. 

By choosing collaboration over competition through a CAF, the ASD Impact Fund helps its member companies share risk, advance innovation together, and contribute to long-term transformation of the palm oil industry.

Fueling Innovation With an SEF: The Kepler U Program Fund

Participants in Kepler U, a workforce development program supported through a Single Entity Fund (SEF) at Tides.

Kepler Group is a global digital marketing agency working with some of the biggest names in the industry, helping clients navigate the evolving landscape of digital marketing, culture, and AI. In 2020, Kepler launched Kepler U — a job training, mentorship, and career development program designed to bring underrepresented people into the digital marketing field. 

The program runs as an eight-week cohort at no cost to participants and includes digital marketing training, mentorship from Kepler employees, and hands-on experience working with nonprofits. Over six years, Kepler U has become a source of pride across the entire company, with staff dedicating significant time and energy to making it successful. “Across a 15-year career in this industry, there is nothing I’m prouder of than the work I’ve been able to contribute to Kepler U,” shared Justin Roberts, Culture & Inclusion Lead at Kepler and Kepler U Executive Sponsor.

As Kepler U gained visibility, leaders across the digital marketing space began expressing interest in contributing to the effort. In 2025, the Kepler team came to Tides to open an SEF — a way to receive tax-deductible contributions and dedicate even more resources to expanding the program.

What started as a passion project now has the philanthropic infrastructure to grow sustainably. The charitable contributions raised through this fund support operational expenses, making the program more sustainable for Kepler and the staff who power it. 

By leveraging a Single Entity Fund at Tides, the Kepler team is building a more durable foundation for the future of the program and expanding its pool of resources to invest in the next generation of digital marketers. “Ten years from now, I can look back and say that’s where it all started,” said a Kepler U alum. 

Finding the Corporate Giving Strategy That Fits

When companies align their giving tools with their impact strategies, the results compound. Collective action funds turn shared purpose — even across sectors and geographies — into unified action and transformative systems change. Fiscal sponsorship through SEFs fuels charitable programs by gathering dedicated resources and removing administrative barriers so teams can focus on what matters most. 

Your impact goals deserve a giving strategy built to match them. Reach out to your Tides advisor to explore which approach is the best fit, or partner with us to get started.