How to Be a Racial Equity Donor
By Lauren Janus
About this time of year, I start planning for the end of the year. Do we have enough mittens? Should I get the furnace serviced? Did we make those IRA contributions?
The hardworking fundraisers in your life are making similar year-end plans, but they are likely turbo-charging them about now. The fourth quarter is when nonprofits around the country kick into high gear, rolling out a series of appeals in which they hope to convince their loyal supporters to get any 2022 gifts in before December 31. For many nonprofits, the period between November 1 and December 31 is when they bring in close to half of their annual donations.
Generous donors like you are used to the annual fall onslaught of emails, phone calls and mailings from your favorite charities. Luckily, the fourth quarter is the perfect time of year to take stock of what you’ve given so far in 2022, how much you’re still able to give, and importantly, how you're going to make those final gifts in a way that fully aligns with your values.
If you’ve vowed to give in support of racial equity in 2022 but feel you’ve fallen a bit short, here’s how you can turn things around before year’s end.
Get clear on what it means–and why it’s important–to give in support of racial equity.
The number one way you can support racial equity in your giving is to give to organizations founded by, led by and serving BIPOC-communities. Why? The funding gap between Black-led organizations and white-led organizations is clear—and alarming. One study of more than 140 nonprofits found that white-led groups had budgets that were 24% larger than those led by people of color. Groups led by Black women receive less money than those run by white women and Black men. And the unrestricted net assets (donations that can be used for any purpose) of Black-led groups are a whopping 76% smaller than those of white-led groups.
There are several reasons for this.
Many donations are based on connections. Leaders of color traditionally have fewer relationships with influential organizations and people. And breaking into the philanthropy community is difficult because new leaders often lack the bandwidth and experience to cultivate relationships with potential funders.
New leaders are generally stretched thin adjusting to internal challenges—such as staffing and funding deficits—and lack the resources to engage in necessary outreach. Let alone getting an invite to the swanky affairs where big donors tend to congregate.
This funding gap is also fueled by racial biases—whether intentional or not. And the vast majority of family foundations (or corporate foundations!) don’t use diversity, equity, and inclusion strategies and goals to guide their giving.
If you need help finding BIPOC-led nonprofits to support, you can start with online databases like GivingGap, the BIPOC ED Coalition of Washington state or just search for compilations of Black-led local organizations, like this list of Chicago-area nonprofits.
Start asking questions of nonprofits before you give.
As those year-end fundraising appeals start flowing into your home, keep that racial equity lens at the ready. Before you make your gifts, ask a few questions of the nonprofits you’re considering supporting:
Is this organization BIPOC-led or BIPOC-benefiting?
What are the racial/ethnic demographics of the staff and board of directors?
What do you know about the Diversity, Equity and Inclusion policies and practices of the organization?
Do BIPOC communities stand to benefit from the work of the organization? If so, how? Is it a direct or indirect impact?
You may not find the answers to all of these questions on the organization’s website. A polite, thoughtful email or phone call is always a good option. If the organization is doing this work well, they’ll be happy to help you learn more about their structure and programs.
What if you’ve asked these questions of one of your favorite nonprofits and found them lacking? Don’t despair! You don’t have to stop giving to them, but you can change the way you’re giving.
With your annual gift, include a letter or set up a time to talk with a development officer. Ask the organization what they are doing to diversify their board, elevate BIPOC and other marginalized voices and expand their reach. Let them know these issues are deeply important to you and that you’re watching, ready to perhaps support them at an even higher level when they’ve made progress on these goals.
Ask yourself the right questions.
Now it’s time to turn the lens on yourself. To be a racial equity-driven donor, you’ll want to continually re-examine how you’re approaching your giving as a whole. Some questions you can consider include:
Am I giving as much as I can right now, or am I “saving” my charitable funds for later? BIPOC-serving organizations need your gifts now; not five years from now (or worse–when you’re dead!).
Am I giving to more than just tax-deductible organizations? How can I widen my definition of giving in this space? Remember that many groups driving change are 501c4 organizations or others to whom gifts are not tax deductible. Do you really need that tax deduction this year? Maybe not.
Am I giving in a way that cedes power? Philanthropy is notorious for power imbalances (please read Decolonizing Wealth by Edgar Villanueva if you haven’t yet). Being a racial equity donor means giving freely, consistently and with your whole heart. You can do this by:
Making multi-year, unrestricted gifts
Educating yourself on the organization’s work; not expecting the reverse
Sharing your support of the organization within your network
Stepping out of the spotlight however you can
Best of luck planning and making those year-end gifts, and do get in touch if you need an extra nudge or even a partner in creating a complete values-aligned giving plan. Wishing you a joy-filled giving season!