Archive for the ‘Blacks and Philanthropy’ Category

Capitalizing on Philanthropic Giving in the Black Community

Sunday, November 15th, 2009

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Non-profits and other philanthropic groups must reach out to wealthy African Americans who constitute an available and generous donor base. The Chronicle of Philanthropy notes: “Driven by rising incomes among Asian-Americans, Blacks, Hispanics, and American Indians, and government projections that minorities will make up nearly half of the U.S. population by 2050, ethnic charities see a stellar opportunity to increase the amount of ethnic philanthropy in coming years.”

In fact, according to an analysis of federal income tax returns conducted by the Urban Institute, donors in primarily black zip codes gave 5.1 percent of their income to charity where only 3.3 percent of income was donated from zip codes identified as predominantly white. An estimated $1.1 trillion to $3.4 trillion wealth transfer is expected to occur in the African American community by 2055.

In order to tap into this philanthropic base, John F. Havens and Paul G. Schervish, in their article “Wealth Transfer Estimates for African American Households”, emphasize the need to both work closely with high-income black Americans and to nurture a connection with young, professionals who will become the next generation of wealthy black Americans. Another opportunity, as seen by Charles Stephens in his article “Professionalism in Black Philanthropy,” is to develop programs at historically black colleges and universities that steer more black professionals into the field of fundraising.

Likewise there are old habits that need changing if black philanthropy is to make the most of its innate generosity. One practice that many organizations, such as the Twenty-First Century Foundation in New York City, hope to change is the custom of spontaneous giving in small amounts. Erica Hunt, president of the foundation says, “We do so much social and reactive giving that we have very little left from our discretionary income for intentional or planned giving.” Almost all non-profit groups will attest that, as ethnic groups enter into the philanthropic circle more and more and at greater levels of giving, they need education in the most efficient and meaningful way to use their dollars. Philanthropy among individuals in the black community needs to become more systematic and sustainable.

Non-profits would do well to help donors to set up their patronage in a thoughtful, practical way that maximizes their giving. As did, for example, the Associated Black Charities of Maryland who formed a partnership entitled the African American Philanthropy Initiative with the Baltimore Giving Project, a nonprofit group that promotes philanthropic giving among young professionals. Many other groups are forming associations like the one in Baltimore to assist prospective black donors in “converting their traditional ways of giving into more modern ones.”

As Emmett D. Carson Jr., the first black president of the Minneapolis Foundation puts it, “The money’s out there. People of color have always given. We need to continue to find new ways to help them do that.”

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Trends in Black Philanthropy Today

Monday, October 26th, 2009

Dan, Brie and Alicia Bythewood

Historically black philanthropy has centered around the church, and much of it still does. However, increasingly, black philanthropy is taking on a more multifaceted shape. According to an article by Carolyn M. Brown in Black Enterprise, “The traditions of African Americans giving to churches, social organizations and educational institutions are very much alive today. According to data from the U.S. Department of Commerce, Chicago-based research firm Target Market News found that in 2004, African Americans made $11.4 billion in contributions. Of that amount, $7.2 billion went to churches and faith-based organizations and $4.2 billion went to charities, education, politics, and other causes.”

Emerging trends in black philanthropy highlight differences between the ways young African Americans chose to give of their time and money and the choices their parents made. Buffy Beaudoin-Schwartz, in her article “Philanthropically Speaking – African American Philanthropy and Associated Black Charities,” points out differences in the giving patterns of those who grew up before the civil rights movement and those who came of age after it. Cheryl Hall Russell in African American Traditions of Giving notes that, as the black middle class continues to grow, more African Americans will move away from mutual aid to more formalized philanthropy, from African American to more universal giving, and from church to more secular giving.

Also, many researchers note that the pattern of cutbacks in government funded social and educational programs, including funding of the arts, have led minorities toward using their donation dollars to fill in gaps left by reductions in government funding. Take the example of entrepreneur and music mogul, Russell Simmons, who co-founded Rush Philanthropic, an organization devoted to the promotion and support of artists of color and the exposure of disadvantaged urban youth to the arts. In a time when schools have increasingly cut music and art programs, this organization has stepped in to ensure that underprivileged youth continue to have access to the arts.

Another trend involves choosing philanthropy as a means to link up with others and to network. It may be that, as more and more single African Americans are achieving higher incomes, they seek philanthropic work and events as a means to connect to others in the community both socially and professionally. An article in The Chronicle of Philanthropy maintains that, “Whether they’ve been asked or not, wealthy minorities give to big universities and cultural institutions in hopes of gaining access to mainstream business or social circles.” Marjorie Polycarpe writes, Central to the philanthropic expression and activity within the African American community is the deep interpersonal connection that is characteristic of giving.  The key is developing relationships or establishing a connection.”

Look for continuing blogs in this series examining the evolution of black philanthropy and the challenges and opportunities for organizations seeking to tap into this strong tradition.

The Roots of Black Philanthropy

Saturday, October 10th, 2009

This is the first blog in a series on Blacks in Philanthropy. It will examine the evolution of black philanthropy and the challenges and opportunities for organizations seeking to tap into this strong tradition.

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The Roots of Black Philanthropy

Philanthropy in the black community has deep, historical roots. In 1787, the Free African Society of Philadelphia was formed to aid free slaves. Many early philanthropic efforts were aimed at supporting freed slaves as well as advancing the anti-slavery movement. With the abolition of slavery, black social service organizations emerged in the form of sororities and fraternities, and the NAACP. These organizations became crucial to the civil rights movement of the 1960s. Perhaps because of the issue-based origin of black philanthropy, today that tradition continues to center around social and political causes that impact the community.

According to Erica L. Ball, Ph.D. of CUNY, “From as early as the eighteenth century to the present day, African Americans have donated their time and resources to a variety of philanthropic organizations and causes, whether they be community-based mutual aid organizations, churches, or major political movements.” Ball cites the view of Emmett Carson, president and CEO of The Minneapolis Foundation, that there are three major branches of black philanthropy: “. . .humanitarian aid, designed to ameliorate individual and community hardship; institutional development or self-help regarding the establishment of churches, schools, and commercial enterprises for black communities; and movements for social change. . .” Not surprisingly, as noted by Ball, much of black philanthropy has, historically, been centered in the church. Black congregations have long been the center of African American life from the broad: social and political movements; to the narrow: assisting those in need in the community.

In 1862, Freedman’s aid societies were organized in the northern states to provide supplies and send teachers to educate former slaves. Thus began the longstanding tradition of educational philanthropy in the black community. Today, the United Negro College Fund is the oldest organization providing for higher education assistance for African Americans. In the tradition of devotion to education, several years ago a lifelong African American laundry woman of modest means, Oseola McCarty, died leaving $150,000 of her life savings to establish scholarships for minority students. An article in Black Enterprise quotes Rodney Jackson, president and CEO of the National Center for Black Philanthropy Inc.: “It was philanthropy for and by African Americans that helped establish historical black colleges and universities. Black fraternities and sororities are also a part of this heritage.”

So what does this mean for the future? An article by Marjorie Polycarpe on the website onphilanthropy.com states: “Dating back to the mutual aid societies of the late 1700s, the African American community has used philanthropic giving as a survival mechanism. [Today] a new direction has emerged. As more African Americans acquire wealth, many are directing their philanthropy beyond causes focused on survival, into economic empowerment and self sufficiency.”


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