Greetings from your community foundation.
We hope this special edition of our newsletter finds you and your family well.
Recent events in communities across America are painful reminders to all of us that systemic racial inequity and injustice in our society continues to severely damage the quality of life for Black people.
Our responsibility as your community foundation is to strive for positive change in our region, especially as it relates to transforming systems that have been broken for far too long.
Part of that responsibility is our duty to you--attorneys, accountants, and financial advisors--to help you serve the donors, nonprofits, and citizens who are your colleagues and clients.
To that end, we would like to suggest actions you can take to join us in supporting Blacks in the community we all love.
Donor-advised funds as anti-racism impact investing tools
Donor-advised funds are sometimes described as “charitable checking accounts.” This explanation is far too limiting, especially now. Yes, donor-advised funds established at the community foundation are convenient and tax-savvy. But the benefits to society and community impact run far deeper.
Embedded at the intersection of donors, nonprofits, civic leaders, and citizens, community foundations serve on the front lines of impact investing, including offering options for impact investing through donor-advised funds. Our team understands where capital can be deployed to result in the swiftest and deepest positive change for Black people in our community. If you aren’t yet familiar with the growing importance of impact investing, it’s a good time to get up to speed.
For inspiration, we recommend that you become familiar with the proactive strategy adopted by Andreesen Horowitz in establishing the Talent X Opportunity Fund, a donor-advised fund. Anything but passive, this fund is an example of roll-up-your-sleeves philanthropy designed to immediately address societal injustice.
Our community foundation team can work with you and your clients to establish donor-advised funds with a wide range of asset levels. Whether your clients are venture capitalist investors or small business owners, we would be honored to assist you in supporting this critically important cause.
Start educating the next generation, right now
Learning about the destructive forces of racial injustice is a priority. Knowledge, although insufficient when not coupled with action, is a necessary step for Americans who do not yet understand the unforgivable circumstances of Blacks.
We encourage you to urge your clients to waste no more time in doing everything possible to become educated about racism in our communities. Family members of all ages can learn together with the help of these and other resources:
Each Kindness, by Jacqueline Woodson;
All American Boys, by Brendan Kiely; and
Thoughtful advice from Harpers Bazaar for how to start planning for an important discussion around the Thanksgiving table.
Show examples
Your clients will undoubtedly benefit from seeing examples of anti-racism philanthropy, especially if they are business owners, private investors, or corporate executives. Three items to help:
A growing number of tech companies are stepping up to match their words with money to fight racism.
The business case for battling racial injustice is gaining strength.
Private sector philanthropists and donors are stepping up to better understand the perspectives of nonprofits and their leaders who face the struggles of Black communities every single day.
Expand investment options
The $69 trillion asset management industry is riddled with a lack of diversity. Last year, a study published by the Knight Foundation revealed disparities:
Less than 4% of publicly-traded funds are run by people of color.
Firms owned by women and minorities combined manage just 1.3% of assets.
The study included a small glimmer of hope: Representation of diverse-owned firms among hedge funds, real estate, and private equity has shown modest gains in recent years.
Professionals who are mindful and proactive about combating racial injustice will be naturally curious to seek out investment funds where decision-makers and top executives are Black.
As always, please contact the team at the community foundation to learn more about what you can do to join us in our important community leadership work to bring an end to the racial bias that is embedded in our daily lives. Your philanthropic commitments and those of your clients can, and will, make a difference.