Democratizing Philanthropy

VISION:  We envision a fair, just and democratic society in which communities of color and other underserved groups are adequately represented in all areas of public policy. We envision a robust minority-led nonprofit sector that has the capacity and resources to engage in public-policy and is empowered to provide an effective voice for all communities.  We envision a diverse foundation sector that views minority communities as full partners in addressing our nation’s most pressing problems.  Philanthropy, if utilized effectively, could lead us to this strong democracy we envision. Overall, Greenlining will work to faciliate win-win partnerships between communities of color and philanthropic foundations.

Foundation Philanthropy

Advocates for a stronger democracy who struggle to bring opportunities to our nation’s underserved communities should have hope. It appears that just beyond the desert there is a rainforest flowing with philanthropic dollars. Consider this statement from the Foundation Center’s website: “The country's more than 72,000 grantmaking foundations increased their giving to $42.9 billion in 2007, an estimated 10 percent gain over 2006.” The Foundation Center goes on to report that there was a 12 percent growth in foundation assets in comparison to the previous year.

Problem: It is Like Receiving a Check Marked, "Insufficient Funds"

Unfortunately, the halls of philanthropy, with the exception of a few outstanding institutions, have failed to live up to this vision. According to Robert Reich, Clinton’s Labor Secretary, only “10% of all charitable deductions are directed at the poor.” It is further estimated that communities of color receive less than 5% of all charitable donations from the more than 72,000 foundations in the country. Some would call this the equivalent of receiving a check marked “insufficient funds.”

In fact, the Applied Research Center, a think tank on racial justice conducted a study in 2004 entitled Short Changed: Foundation Giving and Communities of Color. A major finding in the study was that “grants to communities of color fell from a peak of nearly ten percent of all grants in 1998 to seven percent in 2001.”

Recognizing that foundations traditionally prefer to fund established national and local institutions, Greenlining conducted research in 2005 to determine foundation investments to minority-led non-profit organizations. We were shocked when we found that a mere 3 percent of foundation dollars went to minority-led non-profits in 2002. We followed with a report the next year that had similar findings - only 3.6 percent was being invested in minority-led non-profits. Read our Research Reports Here

Hope is on the Horizon

Greenlining's efforts in our Democratizing Philanthropy program will be to create win-win partnerships with philanthropic institutions throughout the country. Greenlining firmly believes that private-public partnerships between community organizations and foundations can lead to synergestic opportunities that create long lasting change. Overall, Greenlining will work to positively engage foundations on issues related to diversity, effective grant-giving to communities of color, responsible foundation assett management, and other pertinent issues.