A Deeper Look: Funding Disparities in Communities of Color March 2009

1. A Deeper Look: Funding Disparities in Communities of Color March 2009

2. Setting the Context • Diversity is not a new discussion in philanthropy. • Goal of increasing philanthropic investment in communities of color is closely related to goals of increasing the diversity of foundation staff, and board and those of their grantees. • The nation will be majority minority by 2050. Today, 10% of U.S. counties are majority minority – in rural as well as urban areas. • Oregon’s communities of color are steadily growing • Giving to communities of color does not necessarily translate to promoting racial justice or investments in organizations led by people of color.

3. Philanthropic Infrastructure Organizations Affinity Groups Foundations Research Centers Academic Programs Experts in the Field Consultants Nonprofit Partners General Public Attorneys General State legislators Congress Media, Philanthropic Journals, Websites Who’s Having the Conversations? Google Search: 930,000 results for diversity and philanthropy. (0.23 seconds) 929,000 results for philanthropy and diversity. (0.23 seconds) Who is participating in these organizations?

4. Where is the data? • It is important that in a time when foundation field is increasingly preoccupied with metrics, outcomes and impacts, grantee accountability etc. that we do not exempt ourselves from measurement… • Without measurement you have no idea how much you have accomplished or how far you have to go. • Data can be critical in bringing more alignment between intent and outcome.

5. Regional Associations of Grantmakers: Recent Experiences

6. Northern California Grantmakers/Southern California Grantmakers/San Diego Grantmakers • Partnership with the Foundation Center • Information reported on 990s (2005), looking at funding patterns of the largest 50 private foundations in the state. • Center tracks grants of $10,000 or more. • Large foundations - with diversity initiatives and large grantmaking budgets - can skew results. • Foundation Center research included grants coded as benefiting an ethnic or racial minority group or that funded an organization identified by the Foundation Center as serving ethnic or racial minorities as part of its core mission. • Good consistent data is not readily available.

7. New York Regional Association of Grantmakers • Partnership with the Foundation Center Foundation Center , Graduate Center at City University of New York, Urban Institute and National Center for Charitable Statistics • Information reported on 990s of 500 top funders in New York. • Requested information on make-up of staff, board, and leadership by race, ethnicity, disability, lgbtq. • Requested information on types of organizations considered for funding. • Asked for their definition of minority led organization, policies, missions that refer to specific constituencies to be served. • Asked about their involvement in capacity building (with emphasis on capacity building in minority led organizations or communities of color)

8. Findings of 10 Large California Foundations • Nonprofit organizations throughout the state play a critical role in addressing the challenges facing minority and other predominately low-income communities. Yet three systemic issues restrict the ability of these organizations to realize their full potential: • The lack of capacity of many minority-led organizations and other grassroots community-based organizations to compete for funding from large foundations. • The need for additional investment in capacity-building and leadership development targeted at such organizations and leaders of color; and • The lack of access to larger foundations by many minority-led and other grassroots community-based nonprofits.

9. What’s been learned – what happens next? • We need good data: • Data that had been collected by the Foundation Center wasn’t specific enough - grant information described high level of target populations rather than specific. • Important to know what questions to ask – each regional association is improving the survey instruments. • Need to have similar information on nonprofits.

10. Diversity in Philanthropy – National Initiative • Regional Associations • Council on Foundations • Diversity Funders • Foundation Center • Joint Affinity Groups • Purpose: Encourage philanthropy leaders to embrace a concrete next generation set of gains in their inclusive practices, however they may define diversity according to individual mission, interests and organizational culture. • Strategy: Long-range diversity in philanthropy research and data improvement.

11. What do we know about funding in Oregon and southwest Washington? • Diversity of purpose and perspective defines the mission of each philanthropic organization. • It is the differences among the missions and practices of foundations and the diverse nonprofit organizations they support that give the United States the most vibrant civil society of any country in the world. • Value of independence of foundations from government regulation. • What should philanthropy and the nonprofit sector be doing and asking not simply about commitments to diversity, but about advancing the cause of social justice?