0
Andrew Sears
Executive Director, TechMission
andrew@techmission.org
617-282-9798 x101
How CNCS Can AddressHow CNCS Can Add...
OutlineOutline
There is a strong bias across race, class
and gender from foundation funding of
nonprofits
While CNCS did...
Why TechMission Is AddressingWhy TechMission Is Addressing
This Issue?This Issue?
TechMission is an AmeriCorps national d...
Why TechMission Can Speak toWhy TechMission Can Speak to
This Issue?This Issue?
 TechMission’s organizational culture ref...
Nonprofit Statistics and RaceNonprofit Statistics and Race
1.4 million registered nonprofits in USA
◦ 1,169,000 White-led...
Funding Bias: Non-Whites Make Up 52.4%Funding Bias: Non-Whites Make Up 52.4%
Of Poverty But Non-White Led NonprofitsOf Pov...
Nonprofit Leadership Does Not ReflectNonprofit Leadership Does Not Reflect
Class Community it ServesClass Community it Ser...
Most Nonprofits Have a Different ClassMost Nonprofits Have a Different Class
Culture than Clients They ServeCulture than C...
Indigenously Led Nonprofits AreIndigenously Led Nonprofits Are
Most Affected by Funding BiasMost Affected by Funding Bias
...
Funding and GenderFunding and Gender
From: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2...
Diversity Profile of CNCSDiversity Profile of CNCS
Black Latino/a White Asian Native
American
Other
USA Poverty 23.9% 24.8...
If CNCS Funding Profile ReflectsIf CNCS Funding Profile Reflects
Nonprofit Leadership Profile in USA…Nonprofit Leadership ...
SummarySummary
It is not CNCS’s fault that there is a funding bias
in the nonprofit community, but…
CNCS has the ability...
How Can CNCS Be A ForceHow Can CNCS Be A Force
to Counter Nonprofitto Counter Nonprofit
Funding Bias?Funding Bias?
Why Does Only 3% of FoundationWhy Does Only 3% of Foundation
Funding Go to Nonprofits Led by PeopleFunding Go to Nonprofit...
Two Issues for Policy ConsiderationTwo Issues for Policy Consideration
1. Lack of representation of FBOs can lead to
Dispr...
TechMission Experience: HHS & CNCSTechMission Experience: HHS & CNCS
 TechMission was a grantee (with CTCNet) with HHS Co...
Policies Recommendation 1Policies Recommendation 1: Reach out to: Reach out to
Indigenously-Led Faith-Based NonprofitsIndi...
Policies Recommendation 1Policies Recommendation 1: Reach out to: Reach out to
Indigenously-Led Faith-Based NonprofitsIndi...
Policies Recommendation 2Policies Recommendation 2: Use: Use
Diversity Profiles for All CNCS ApplicantsDiversity Profiles ...
Comparing Bias in Standardized TestingComparing Bias in Standardized Testing
to Bias from Standardized Outcomesto Bias fro...
Understanding Nonprofit Funding BiasUnderstanding Nonprofit Funding Bias
Racial Bias
◦ 97% of foundation funding goes tow...
Dominant Culture Outcomes vs.Dominant Culture Outcomes vs.
Non-dominant OutcomesNon-dominant Outcomes
Dominant Culture
(mi...
Ways to Counter Bias ofWays to Counter Bias of
Standardized OutcomesStandardized Outcomes
Rigorous standardized outcomes ...
Sample Diversity Profile FormSample Diversity Profile Form
Board & Staff Asian Black Latino(a) White Other Total
F M Tot %...
Example Diversity Profile:Example Diversity Profile:
TechMissionTechMission
Policies Recommendation 3Policies Recommendation 3: Revise Funding: Revise Funding
Criteria to Better Reflect Community Va...
Policies Recommendation 3aPolicies Recommendation 3a: Revise: Revise
Funding CriteriaFunding Criteria
 Consider “Minority...
Policy Recommendation 3b: Revise FundingPolicy Recommendation 3b: Revise Funding
Criteria Related to Cost Per MemberCriter...
Policy Recommendation 3b: Revise FundingPolicy Recommendation 3b: Revise Funding
Criteria Related to Cost Per MemberCriter...
SummarySummary
There is a strong bias in the nonprofit
funding community toward White, elite
nonprofits
◦ That is not CNC...
Summary: Revisions to FundingSummary: Revisions to Funding
CriteriaCriteria
1. Give diversity profiles significant weight ...
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How the Serve America Act Can Counter Nonprofit Funding Bias

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Research shows that while 52.4% of those in poverty in the USA are people of color, only 16.5% of nonprofits are led by people of color, and only 3% of foundation funding goes toward organizations that are led by people of color. This presentation provides three recommendations of how AmeriCorps can counter this bias: (1) reaching out to Black and Latino led Faith-based organizations (2) requiring grantees provide diversity profiles (3) Revising funding priorities.

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Transcript of "How the Serve America Act Can Counter Nonprofit Funding Bias"

  1. 1. Andrew Sears Executive Director, TechMission andrew@techmission.org 617-282-9798 x101 How CNCS Can AddressHow CNCS Can Address Nonprofit Funding BiasNonprofit Funding Bias Presentation Available at: www.urbanministry.org/cncsproposal
  2. 2. OutlineOutline There is a strong bias across race, class and gender from foundation funding of nonprofits While CNCS did not cause this bias, CNCS has the potential to counter this bias Specific policy recommendations on how CNCS can counter the funding bias
  3. 3. Why TechMission Is AddressingWhy TechMission Is Addressing This Issue?This Issue? TechMission is an AmeriCorps national direct grantee that supports an at-risk corps TechMission primarily supports Black and Latino-led nonprofits that are close to the community ◦ We have seen how these nonprofits are experiencing systemic issues with bias in funding of nonprofits ◦ In a down economy, we are observing an increasing bias towards large (i.e. White) organizations ◦ Many of our partner sites are struggling to stay functional
  4. 4. Why TechMission Can Speak toWhy TechMission Can Speak to This Issue?This Issue?  TechMission’s organizational culture reflects lower class culture ◦ Nearly all of board and senior staff are Black, Latino and/or come from low-income background ◦ ED is White from lower class background ◦ TechMission Corps AmeriCorps members are 63% Black and Latino with 50% from low-income backgrounds  TechMission has one of the widest spans of connection with grassroots organizations (over 4,000 registered nonprofits) ◦ UrbanMinistry.org being the Black/Latino counterpart to Idealist.org and VolunteerMatch.org  Leadership has extensive experience on writing about and living out reconciliation across race, class and gender
  5. 5. Nonprofit Statistics and RaceNonprofit Statistics and Race 1.4 million registered nonprofits in USA ◦ 1,169,000 White-led nonprofits ◦ 138,600 Black-led nonprofits ◦ 50,400 Latino-led nonprofits ◦ 12,600 nonprofits led by other races Source: Number of nonprofits from Independent Sector, Racial breakdown extrapolated based on survey results at: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
  6. 6. Funding Bias: Non-Whites Make Up 52.4%Funding Bias: Non-Whites Make Up 52.4% Of Poverty But Non-White Led NonprofitsOf Poverty But Non-White Led Nonprofits Only Receive 3% of FundingOnly Receive 3% of Funding http://www.slideshare.net/rosettathurman/race-matters-in-nonprofits-promoting-diversity-in-our-profession and http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
  7. 7. Nonprofit Leadership Does Not ReflectNonprofit Leadership Does Not Reflect Class Community it ServesClass Community it Serves Data show subjective estimates from the author based on educational levels and class assimilation rates of nonprofit leadership. 94% of leadership have at least bachelor’s degree with an estimated class assimilation rate of 90-95% based on living location & culture
  8. 8. Most Nonprofits Have a Different ClassMost Nonprofits Have a Different Class Culture than Clients They ServeCulture than Clients They Serve White Black Latino Asian Upper Middle Lower Leadership Clients Clients Clients Clients
  9. 9. Indigenously Led Nonprofits AreIndigenously Led Nonprofits Are Most Affected by Funding BiasMost Affected by Funding Bias White Black Latino Asian Upper Middle Lower Leadership and clients
  10. 10. Funding and GenderFunding and Gender From: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
  11. 11. Diversity Profile of CNCSDiversity Profile of CNCS Black Latino/a White Asian Native American Other USA Poverty 23.9% 24.8% 47.6% 3.7% 5.3% 1% AmeriCorps 26% 15% 50% 2% 3% 4% NCCC 86% VISTA NO DATA (recommendation for study) CNCS Staff NO DATA (likely reflects HHS staffing overall) HHS Staff 16.8% 3.6% 55.8% 7.2% 16.6% Leadership of Funded Orgs NO DATA (recommendation for study) Leadership of Service Sites NO DATA (recommendation for study) Sources: http://www.abtassociates.com/reports/ES-americorps-baseline.pdf http://www.abtassociates.com/reports/COMSRVS.pdf http://www.opm.gov/feddata/demograp/Table2mw.pdf
  12. 12. If CNCS Funding Profile ReflectsIf CNCS Funding Profile Reflects Nonprofit Leadership Profile in USA…Nonprofit Leadership Profile in USA… Source: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
  13. 13. SummarySummary It is not CNCS’s fault that there is a funding bias in the nonprofit community, but… CNCS has the ability to dramatically counter nonprofit bias ◦ Diversity profile of AmeriCorps members is strong: creates diversity in leadership pipeline of nonprofits ◦ Diversity profile of leadership of CNCS funded organizations is unknown  This is what is most important to counter funding bias  Diverse leadership creates diversity throughout organizations
  14. 14. How Can CNCS Be A ForceHow Can CNCS Be A Force to Counter Nonprofitto Counter Nonprofit Funding Bias?Funding Bias?
  15. 15. Why Does Only 3% of FoundationWhy Does Only 3% of Foundation Funding Go to Nonprofits Led by PeopleFunding Go to Nonprofits Led by People of Color?of Color? Statistics are explained in the attached spreadsheet at: www.urbanministry.org/fundingbias
  16. 16. Two Issues for Policy ConsiderationTwo Issues for Policy Consideration 1. Lack of representation of FBOs can lead to Disproportionate Effects on Black and Latino-led organizations ◦ Less than 10% of AmeriCorps national direct organizations are faith-based ◦ Faith-based organizations represent about 1/3 of the social services sector 1. Cultural Bias ◦ Standardized outcome measures and funding criteria can unintentionally introduce a cultural bias into funding process just like standardized testing introduces bias in educational tests Statistics are explained in the attached spreadsheet at: www.urbanministry.org/fundingbias
  17. 17. TechMission Experience: HHS & CNCSTechMission Experience: HHS & CNCS  TechMission was a grantee (with CTCNet) with HHS Compassion Capital Fund (02-06) ◦ CCF grantee meetings were over about 75% people of color and about 50% FBOs  TechMission is a National Direct grantee ◦ Grantee meetings seem to be about 10% people of color and less than 10% are FBOs  Differences between HHS CCF & CNCS ◦ Different levels of outreach to FBOs and communities of color ◦ Different levels of outreach to ensure that FBOs and communities of color are adequately represented among grant reviewers ◦ HHS follows Charitable Choice legislation respecting religious hiring rights ◦ AmeriCorps does not seem to follow Charitable Choice and requires non- discrimination on sexual orientation ◦ Our estimate is that differences in hiring rights results in a loss of more than 50% of FBOs which eliminates 1/3 of Black-led nonprofits  We recognize that this is just our non-statistical estimates based on limited meetings and discussions with partners
  18. 18. Policies Recommendation 1Policies Recommendation 1: Reach out to: Reach out to Indigenously-Led Faith-Based NonprofitsIndigenously-Led Faith-Based Nonprofits Policies that restrict funding faith-based organizations create an unintentional bias toward White-led organization How it works ◦ About 2/3 of Black-led nonprofits are in churches or other faith-based organizations ◦ About 2/3 of White-led nonprofits are secular ◦ Limited funding of faith-based organizations makes White-led nonprofits twice as likely to get funded It is Critical to Continuing efforts of Office of Faith-based & Neighborhood partnerships Statistics are explained in the attached spreadsheet at: www.urbanministry.org/fundingbias
  19. 19. Policies Recommendation 1Policies Recommendation 1: Reach out to: Reach out to Indigenously-Led Faith-Based NonprofitsIndigenously-Led Faith-Based Nonprofits Invest significantly in recruiting: 1. Grant reviewers from under-represented populations 2. Organizations led by minority groups that are under-represented Intentionally prioritize intermediaries that show history of success in placing members in minority-led nonprofits ◦ Consider expanding Native American focused initiative to include minority-led grantees with greater than 50% minority placements
  20. 20. Policies Recommendation 2Policies Recommendation 2: Use: Use Diversity Profiles for All CNCS ApplicantsDiversity Profiles for All CNCS Applicants  Recommend CNCS require all funding recipients to complete diversity reporting form as part of applications  Recommend CNCS publicly list their own diversity reporting form with the cumulative results of who they funded and who the members are  Recommend Diversity reports carry similar weight as financial and other outcome reports and should be listed in CNCS’s annual report ◦ Diversity profiles & reports become an approximate measure for many of the subjective elements that are hard to measure in other outcomes ◦ Diversity reports could be used to provide suggested corrective actions to grantees that significantly under-represent the populations they are serving ◦ Diversity provides could help CNCS adapt its funding portfolio to better include under-represented groups
  21. 21. Comparing Bias in Standardized TestingComparing Bias in Standardized Testing to Bias from Standardized Outcomesto Bias from Standardized Outcomes Racial Bias ◦ White or Asian: 150-200 point increase Income Bias ◦ 30 points per $10,000 of family income The cultural bias of the SAT test is well documented and understood The bias from standardized outcomes is similar but less well understood Source: http://www.maec.org/natstats.html & http://www.educationanddemocracy.org/testing_facts.pdf
  22. 22. Understanding Nonprofit Funding BiasUnderstanding Nonprofit Funding Bias Racial Bias ◦ 97% of foundation funding goes toward White-led nonprofits Income Bias ◦ Estimated 95% of leadership of nonprofits is culturally middle class Gender Bias ◦ While 58% of nonprofit executives are women, the median income of a nonprofit led by a man has twice the median income of a nonprofit led by a woman The Cultural bias of foundation funding is well documented, but not well understood Sources: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf & http://greenlining.org/publications/pdf/339 The class statistic is explained on a previous slide
  23. 23. Dominant Culture Outcomes vs.Dominant Culture Outcomes vs. Non-dominant OutcomesNon-dominant Outcomes Dominant Culture (middle & upper class value)  Value Big Organizations  Almost no weight given to leadership being close to the community ◦ Community support = funding  Analytical & Quantitative ◦ Nonprofit “SAT Scores”  Purely Objective Criteria  Secular Focused Non-Dominant Culture (lower class value)  Cost effectiveness  Is leadership close to the community? ◦ Race of leadership (staff/board) ◦ Class background of leadership ◦ Neighborhood they live in  Holistic ◦ Has a Life been Changed  Subjective  Faith-Based & Secular
  24. 24. Ways to Counter Bias ofWays to Counter Bias of Standardized OutcomesStandardized Outcomes Rigorous standardized outcomes without rigorous demographic tracking will result in the same type of bias for funding as exists for standardized tests Follow No Child Left Behind as an example ◦ Requires rigorous outcomes ◦ Track demographics equally rigorously ◦ Result is that people are held accountable and social injustice is exposed “If you can't measure it, you can't manage it.” - Peter Drucker
  25. 25. Sample Diversity Profile FormSample Diversity Profile Form Board & Staff Asian Black Latino(a) White Other Total F M Tot % F M Tot % F M Tot % F M Tot % F M Tot % F M Total % Board Chair/President of Board 0 0% 0 0% 0 0% 1 1 17% 0 0% 0 1 1 17% Other Board Officers 0 0% 1 1 17% 1 1 17% 0 0% 0 0% 0 2 2 33% Other Board Members 0 0% 2 1 3 50% 0 0% 0 0% 0 0% 2 1 3 50% Subtotals 0 0 0 0% 2 2 4 67% 0 1 1 17% 0 1 1 17% 0 0 0 0% 2 4 6 100% Management Staff Executive Director 0 0% 0 0% 0 0% 1 1 33% 0 0% 0 1 1 33% Other Management or Supervisory Staff 0 0% 1 1 2 67% 0 0% 0 0% 0 0% 1 1 2 67% Subtotals 0 0 0 0% 1 1 2 67% 0 0 0 0% 0 1 1 33% 0 0 0 0% 1 2 3 100% Other Staff Program Staff 0 0% 0 0% 0 0% 3 1 4 27% 0 0% 3 1 4 27% Support Staff 1 1 7% 2 1 3 20% 1 1 7% 3 2 5 33% 1 1 7% 7 4 11 73% Subtotals 1 0 1 7% 2 1 3 20% 0 1 1 7% 6 3 9 60% 1 0 1 7% 10 5 15 100% Volunteer/AmeriCorps Members at Sites 1 1 2 7% 7 4 11 38% 1 2 3 10% 9 4 13 45% 0 0% 18 11 29 100% Subtotals 1 1 2 7% 7 4 11 38% 1 2 3 10% 9 4 13 45% 0 0 0 0% 18 11 29 100% Grand Total 2 1 3 6% 12 8 20 38% 1 4 5 9% 15 9 24 45% 1 0 1 2% 31 22 53 100% Organization Population Served 47 39 86 6% 304 256 560 42% 291 248 539 40% 37 41 78 6% 37 33 70 5% 716 617 1333 100% Program Population Served (if applicable) 2 4 6 1% 125 103 228 53% 107 59 166 39% 2 2 4 1% 15 12 27 6% 251 180 431 100% From Associated Grantmakers of Massachusetts: http://www.agmconnect.org/cpf/CPF_Diversity_Form.xls
  26. 26. Example Diversity Profile:Example Diversity Profile: TechMissionTechMission
  27. 27. Policies Recommendation 3Policies Recommendation 3: Revise Funding: Revise Funding Criteria to Better Reflect Community ValuesCriteria to Better Reflect Community Values Diversity profiles become an objective measure to approximate subjective elements that are hard to quantify Example from TechMission’s Grant Applications ◦ 20% of Grant Application Weight: Is leadership close to the community as reflected in their diversity profile and strategy?  Use diversity profile form and grant questions ◦ 20% of Grant Application Weight: Is organization serving the highest risk community?  Require detailed criteria to distinguish at-risk vs. high risk, etc.
  28. 28. Policies Recommendation 3aPolicies Recommendation 3a: Revise: Revise Funding CriteriaFunding Criteria  Consider “Minority Owned Business” Preference for Nonprofits ◦ If the Government gives preference to minority owned businesses in contracts, shouldn’t that be a consideration with nonprofits? ◦ Nonprofits that closely reflect the demographics of the communities they are serving should be given preference (affirmative action in nonprofit funding)  CNCS as Nonprofit Equivalent of Small Business Admin ◦ Demographics of CNCS’s funding portfolio will be under increased scrutiny in the same way the SBA ◦ The rapid increase in number of nonprofits is comparable to the increase in small businesses. ◦ Is CNCS adopting strategies similar to the SBA fostering the growth of these small nonprofits?
  29. 29. Policy Recommendation 3b: Revise FundingPolicy Recommendation 3b: Revise Funding Criteria Related to Cost Per MemberCriteria Related to Cost Per Member IncentivesIncentives  CNCS funding process currently encourages a high cost per member ◦ Higher match means more likely to get more funding from CNCS ◦ Most 1,000+ member grantees have a cost per member around $30k-40k per member ◦ Under the Serve America Act, growth from 75,000 members to 250,000 @ $40k/member would require $7 billion in growth annually in the nonprofit sector ◦ $7 Billion of nonprofit sector growth among CNCS grantees is not realistic in the current economy ◦ Requiring high match creates a bias toward more elite organizations which may not reflect community demographics ◦ FBO’s do not include much of their potential match because doing so creates hiring and faith restrictions on those funds
  30. 30. Policy Recommendation 3b: Revise FundingPolicy Recommendation 3b: Revise Funding Criteria Related to Cost Per MemberCriteria Related to Cost Per Member IncentivesIncentives  Emphasis on high cost per member creates a systemic bias ◦ Since 97% of foundation funding goes to White-led upper- middle class nonprofits, other nonprofits have difficulty finding match ◦ High cost per member programs have much more funding to track and record rigorous quantitative outcomes further increasing their chances of funding ◦ Encourages high overhead and upper-middle class, elite organizations  Solution ◦ Need stronger weight on measures of efficiency and diversity profile in funding and less weight on total cost per member (high match) ◦ Move toward quantitative measures of social value beyond just funding match to show social return on investment (RoI)
  31. 31. SummarySummary There is a strong bias in the nonprofit funding community toward White, elite nonprofits ◦ That is not CNCS’s fault CNCS needs to implement policies to counter this bias 1.Intentionally pursuing indigenously-led FBOs 2.Use diversity profiles in applications & outcomes 3.Need to revise funding criteria to offset systemic bias
  32. 32. Summary: Revisions to FundingSummary: Revisions to Funding CriteriaCriteria 1. Give diversity profiles significant weight in funding decisions. 2. Give preference for nonprofits that are the equivalent of a “minority owned” business 3. Develop funding strategies to foster growth of new nonprofits similar to the government’s small business strategies 4. Reverse incentives for programs to have a high cost-per-member with incentives focused on efficiency with high social RoI Presentation Available at: www.urbanministry.org/cncsproposal
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