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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