The Problem with How Nonprofits are Supported by COVID-19 Funds
Two hands holding in the air, made up of multiple colors.
Okay, philanthropy, we need to have a serious conversation. We know that nonprofits are struggling at this time. Staff are being laid off. Fundraising events have been canceled. Executive Directors are tearing their hair out as they struggle to support their communities with little to no funding coming in the door.
YES - there’s a huge need right now to get funding quickly to organizations. But if we don’t pause and pay attention to equity and inclusion, then we WILL leave communities of color behind in this crisis. Over the past few weeks, community foundations have been asked by corporations and local governments to be responsible for doling out the funds. Yet, the way that funding is being given out right now is the way it’s always been given out. It’s going primarily to existing grantees that the board/staff know well. These organizations are usually white-led and many have development staff who can fundraise and write grants. The problem with that is minority-led organizations are always the ones getting called upon to serve their own communities. And the philanthropic sector has a long track record of not supporting these nonprofits.
Just take a look at the numbers.
The majority of foundation leaders (90%) are White
According to the Greenlining Institute, only about 10% of philanthropic dollars actually go to minority-led and organizations of color
And of that, only 1.5% gets to Asian Pacific American (APA) communities, which, during COVID-19, are not only hurting from anti-racism, but have to deal with the model minority myth as well
But I get it. We’re in a crisis. We don’t have time. Yet, there are a few things you CAN do in order to ensure inclusion through your grant making of COVID-19 relief funds.
Open up a RFP process instead of just giving out the funds to your existing grantees. Keep the application short (one or two pages).
Talk to community leaders to learn about what’s happening in their communities. Where is funding the most needed right now?
Work with your local giving circles and ask them to partner with you in grant making. Most giving circle members know their community well and which organizations need support.
And for local governments who are asking foundations to manage the fund —> Ask them to tell you how they’re going to get funding to communities of color and minority-led groups. Hold them accountable for managing taxpayer dollars.
If your organization doesn't have the emotional bandwidth or the staff capacity to take on equity and inclusion right now, that’s fine. But then reconsider whether you really want to compete with communities of color by asking for contributions from the public. At the same time, ask yourself: If this pandemic isn’t the time for inclusion and equity, then when is? The coronavirus has already revealed so much about how inequitable our systems are. What is your responsibility in this? How can you ensure that there will be a future for communities of color after this pandemic?