Posts Tagged ‘Black Philanthropy’

What Today’s Young Affluent African American Professionals Demand

Thursday, November 4th, 2010

In 2008, Diversity Affluence and UPTOWN Magazine embarked on a 3 month research tour that included online research and focus groups which took place in Chicago, Atlanta, Washington DC and New York to find out what some of today’s young, affluent African American professionals crave.

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Luxury plays an important and diverse role in the lives of the affluent African American professional. While luxury often involves the acquisition of tangible, expensive items, even for tangible purchases (like automobiles, jewelry, clothing, etc) the role of the emotional experience around the item is paramount. Perhaps no category better exemplifies this than luxury travel.

The key driver for escape and restorative travel is the need to get away from the high pressure, highly structured, highly confined daily grind of work and home. Some of the statements included: “It’s all about me!” or “Every time I accomplish something big at work, I treat myself to a nice trip.” The types of places people mentioned escaping to were warmer or tropical climates such as: The Caribbean Islands (Dominican Republic, Turks & Caicos), Mexico (Cabo San Lucas, the Mediterranean (Greece) and the Pacific Islands.

Other key lifestyle categories that were high on the radar of these professionals included:

  • Fine Dining - “I’ll spend hundreds of dollars every few months on dining to increase my food vocabulary.”
  • Philanthropy - Hands on giving strongly resonated with focus group participants and education was a critical focus. Their was a desire to have a direct impact on those they helped and not just send checks. “Boys and Girls Clubs are always getting athletic equipment. But schools are not getting what they need to educate youth.”
  • Networking - Affluent African American Young Professionals are hungry for in person social networking. They made it clear that in a perfect world “they want the perfect trifecta.” Event planners, marketers and even high end promoters, listen carefully. Incorporate the following 3 elements into your gatherings, every time, and your brand or business is sure to reap the rewards:  charity or non profit, equal part single male and single female’s (yes, they both want to make romantic connections) and a good cross section of credible, working professionals so that everyone can network for business. Make these smaller, invitation only moments (50-100 people) so that everyone benefits from a targeted, intimate experience.

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To inquire about this report or to purchase it, visit Marketing to Affluent African Americans-Strategic Insights for Reaching an Untapped Market. Mention this blog and receive a 20% discount.

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.

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