By CultureBanx Team
- Black leaders of 501(c)3’s had 45% less revenue, with unrestricted assets that were 91% lower than their white leader counterparts
- Charitable gifts from corporations, foundations and individuals, including faith-based hit $10.4B worldwide last week
Unequal funding is persistent throughout philanthropic communities even in the face of a pandemic. The level of need has widened fault lines that already had appeared in the philanthropic community over the last decade. Large charitable gifts from corporations, foundations and individuals, including faith-based and other sources, hit $10.4 billion worldwide last week. As the coronavirus sweeps the globe, it’s clear the nonprofit sector will play an integral role in rebuilding the economy. It’s possible for a global event of this magnitude to re-level the playing for foundations eager to evaluate different ways to fund disenfranchised groups in need.
Why This Matters: Currently the disparities within non-profit are grim, for example, a report from Echoing Green highlights that among organizations focused on improving the outcomes of Black boys, Black leaders of 501(c)3’s had 45% less revenue, with unrestricted assets that were 91% lower than their white leader counterparts. Additionally, the study noted that 92% of foundation presidents and 83% of full-time staff members are white, so the problem is both internal and external for these groups.
One of the ways to move the philanthropic needle when it comes to disrupting the traditional model of allocating money for racial equity comes in the form of data. Organizations that can position themselves as funding ready can maximize their capital by grantors, and are the most likely to have a higher probability of getting the financial allocations needed. This is exactly what Resilia, a SaaS company that just raised an $8 million Series A round and $10.5 million in total, tackles with its measurement reports and statistics that funders seek.
“One of the biggest hangups with race, philanthropy and disparity is a barrier in reporting and metrics, to give funders what they’re looking for that shows a program’s impact and success” said Sevetri Wilson, Founder & CEO of Resilia. Callais Capital Management, an investor in Resilia noted their platform is particularly necessary during times of crises to ensure oversight, management, and transparency. Wilson sees funding allocation happen in three different ways; Reactionary, Recovery and Mitigation of Future Risk.
Situational Awareness: Democratizing funding opportunities means streamlining the nonprofit sector to create racial equity across the decision-making process, while increasing the steady flow of capital. Recently, there has been a movement to relax the typical restrictions on how the money can be spent by nonprofit agencies on the ground, especially those that are demonstrating impact.
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