Racial Barriers in Philanthropy: A Call for Change

Based on the work done behind a recent report from Echoing Green and Bridgespan, two of the biggest factors holding back philanthropy efforts to help advance social change are rooted in race. One factor is understanding the role of race in the problems philanthropists are trying to solve. The second is the significance of race when it comes to how philanthropists identify leaders and find solutions.

As many philanthropists set out to combat inequities in access to resources, as well as issues related to privilege, power and control, they must first realize that the results of their overall impact heavily rides on their work to address racial disparities.

A Race-Conscious Approach in Grantmaking

Data show that philanthropists are more likely to donate to white-led nonprofit organizations, even when their main goal is to combat structural inequalities and achieve equitable outcomes in society. While funding should be the main area under the microscope, it has sadly not been.

Black-founded nonprofits are more likely to not only understand racialized experiences of communities of color and the issues these communities face but also employ Black people, spend time attacking racial inequality, and empower Black social entrepreneurs. Yet, Black nonprofit leaders are receiving way less funding.

The Echoing Green and Bridgespan report is a call for change in philanthropy as it reveals the extent of these inequalities upheld by disparities in funding for leaders of color.

Philanthropists have taken a “color-blind” approach to grantmaking for too long. Even when attempting to make a humble effort for equity, they tend to ignore the role of race in the work they fund, which has only served to increase racial inequality.

In order to turn this around and scale nonprofits’ impact at large, funding nonprofit leaders of color must become a priority and grantmakers must begin taking a race-conscious approach when deciding which organizations to support.

A Guide to Supporting Black Founded Nonprofits

#GiveBlack is a movement encouraging people and institutions to donate charitable funds to Black-founded nonprofits. Supporting this movement is an intentional investment in the Black community. 

In addition to supporting the #GiveBlack movement, those looking to make a change can update and share this compilation of Black-founded nonprofits, courtesy of All Star Code, a nonprofit computer science education organization focused on motivated Black and Latino young men.

As we continue our fight to make the world a more fair and equitable place, race remains a defining factor in grantmaking, even when philanthropists are grounded in a well-meaning attempt at equity.

The disparity in funding for Black-founded nonprofits is not recognized nearly enough. We encourage you to share this blog with your family and friends to spread awareness and show your support for the cause.

Visit Echoing Green’s Racial Equity in Philanthropy Special Collection for more information about dismantling the persistent and substantial barriers leaders of color face in securing philanthropic funding.

Photo cred: Robin Hood Foundation, The Nonprofit Times

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