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Race is considered one of the most important factors that play a surprisingly effective role in receiving grants or funding non-profit organizations. This statement can be easily proven by the inequities revealed by several reports.
For example, one report found out that revenues that were generated by black-led organizations were 24% smaller than the revenues generated by white led counterparts similarly this report suggested that net assets of the black-led organization are 76% smaller as compared to their white-led counterparts.
In addition to this report the recent research report by "Echoing Green" and "The Bridgespan Group" also revealed the insightful picture of inequitable funding and their effects on the creation of impacts. So this article will cover the reasons why is this problem? And what can be done to reduce the racial factions to raise funding for non-profit organizations?
1: The studies completed by Cheryl Dorsey, Jeft Bradach, and Peter Kim show those race-related issues are mainly due to certain barriers. The first thing shown by this report is that often stakeholders have a limited understanding of how race plays a role as a social challenge and secondly, there is also a limited understanding of this challenge in the way philanthropists engage leaders to solve this issue so these people do not always give special attention to race factor, in this way critical examination through the race-based lens is often neglected. This examination is necessary not only necessary to achieve racial equality in philanthropy but also for achieving greater success in the field of philanthropy.
2: The second reason for this problem is that even when the intentions of Philanthropists are sincere to raise equitable funding, the structural aspects of philanthropy put the black-led organizations into certain disadvantages. Limited access to capital resulted in access to the privileged community and interaction with them burdens the leaders with higher emotional labor. So, the second reason that should be considered is the limited access to the social capital and complexity of social engagements that act usually as the barrier in the way of black-led organizations.
One of the possible solutions of this problem is to understand that only good intentions are not enough to solve the inequality problem until and unless the systematical changes are deeply focused, this is because of the reason that these changes create the leverage and have a greater ability to address this problem of inequality. In short, the aforementioned report has summarized the problem in the following words "When it comes to the Philanthropic Funding _the racial disparity is clear. Population levels impact the issues, donors care cannot happen without funding more leaders of color and funding them more deeply".
* This above mentioned Echoing Green/Bridgespan report not only show the journeys of organizations to address the racial issues but also highlights the efforts to tackle with this problem, for example, two organizations San Francisco Foundation and The Chicago Community trust were highly focused to show the encountering measures to these organizations to tackle with this challenge.
As mentioned above let's discuss the problem created by limited access to the community as a problem in establishing connections with funding organizations is also a barrier for raising funds and grants. A recent report has shown that 92% of presidents of foundations with their 83 % of full-time staff are white so this creates the problems for black-led organizations.
* Another reason for the problem is because of the complexity of building rapport by the black-led organizations this problem is due to the difference in the experience and then this is acting as the cause to create a biased view.
* Next thing that causes the problems for black-led organizations is creating the reports based on measurements and statistical data as various factors such as cost; time, etc. play an important role in gaining the trust of the funders. The aforementioned report also shows that there is only 1% acceptance of applications of applicants and the rest of others are neglected mainly due to racial reasons.
* Another important thing related to the problem is that growing awareness that equity is important is not enough until and unless there is a presence of structural discrimination. So the problem occurs mainly because of this structural discrimination.
* Another reason for this problem is suggested by many leaders is lack of understanding about their communities, for example, this can well be elaborated by the experience shared by one activist who said that she had to spend ~ 30 minutes to educate the funders about the community.
Some common reasons that create the problems are as following;
* One of the reasons for this problem can be found out in a mind science for example according to the experts of the mind science to present of this discrimination is due to the conscious mind in due to implicitly biased views. Lack of understanding of this implicit can be one important factor behind the difficulty in fundraising, for example, one study shows that female applicants had to be two and a half times more productive than the average male applicants so lack of understanding of mind science of community.
Some tips to solve this problem:
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