A Positive Future

This past December a group of 9 California foundations announced its plans to invest in minority nonprofit organizations.  This foundation coalition was formed in response to Greenlining-led legislation that would have required foundations to simply disclose diversity data on an annual basis.

Overall, the new grantmaking programs announced by the 9 foundations will total $30 million over the next two to three years.

Greenlining's Analysis

From the onset, Greenlining had mixed reactions to this foundation initiative.  On the positive side, we were pleased to see that major foundations were voluntarily working together to address a critical

issue for communities of color.   On the other hand, we were disappointed that the agreement was essentially limited to “capacity building” and did not take into account larger issues around equity and diversity.

The foundation announcement parallels our hopes and concerns.  First, we are positive that this agreement will serve as a model for other foundations in the country that wish to be proactive on the unique issues facing minority nonprofits.  In addition, there are new funding opportunities that could make a big difference for small minority-led nonprofits, especially during tough economic times.  And minority-led nonprofits are excited that a group of very large foundations are explicitly speaking of supporting minority nonprofits.  Overall, the 9 foundations should be commended for their leadership efforts.

But we are also disappointed.  First, the commitment is joined only by these 9 California foundations.  We had hoped that more foundations would take this leadership role.  Second, the agreement covers a period of only 2-3 years.  Community leaders were looking forward to a 5-10 year agreement.  Third, the agreement is mostly limited to the capacity building needs of minority nonprofits.  With the exception of The California Endowment, no other foundation appears to be thoroughly committed to diversifying all aspects of its operation including grantmaking, staff and board composition, and supplier diversity.

Fourth, there are no commitments to long-term operating support for minority-led nonprofits, which we believe is central to the empowerment of communities that suffer from education, health, economic and other disparities.  Finally, it appears that Fresno, the Inland Empire, and San Diego need more resources committed to minority nonprofits in those areas.

Next Steps

Over the next year Greenlining will focus on the following activities related to philanthropy.  Only with your support can we succeed.

1.    We will work with other foundations, including corporate foundations, to engage in similar efforts with a goal of replicating the $30 million figure in one year.

2.    We will continue to build a diverse taskforce to continue our work to advance issues of equity in philanthropy and to implement the Community Action Plan on Philanthropy.

3.    We will continue to partner with leaders in other states to advocate for equity in philanthropy.(read the Wall Street Journal’s intimidation op-ed regarding Florida’s efforts here.)

In the meantime, we hope that many of you will send your suggestions on how to make this historic pledge a success.  Suggestions, recommendations and feedback can be sent to orsona@greenlining.org and or chrisv@greenlining.org.