Andrew Sears Executive Director TechMission Race, Class, Gender & Faith Bias in Nonprofit Funding

Why TechMission Is Addressing This Issue? 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 big (i.e. White) organizations Many of our partner sites are struggling to stay functional

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 big (i.e. White) organizations

Many of our partner sites are struggling to stay functional

Why TechMission Can Speak to 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 62% Black and Latino with 50% from low-income backgrounds TechMission has one of the widest spans of connection with grass roots 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

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 62% Black and Latino with 50% from low-income backgrounds

TechMission has one of the widest spans of connection with grass roots 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

Nonprofit Leadership Does Not Reflect Racial Community it Serves Source: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf

Nonprofit 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

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

Funding Bias: Non-Whites Make up 52.4% of Poverty but Non-White Led Nonprofits only 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

Most Nonprofits: Have a Different Class Culture than Clients Leadership Clients Leadership Leadership Leadership White Black Latino Asian Upper Middle Lower

TechMission’s Focus & Other Lower Class Culture Nonprofits Leadership and clients White Black Latino Asian Upper Middle Lower

Nonprofit Leadership Does Not Reflect Class 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

Funding and Gender From: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf

How to Perform on the SAT Test Be White or Asian 150-200 point increase Be Rich 30 points per $10,000 of family income Conclusion: To Improve SAT Scores… Be careful how you pick your parents Source: http://www.maec.org/natstats.html & http://www.educationanddemocracy.org/testing_facts.pdf

Be White or Asian

150-200 point increase

Be Rich

30 points per $10,000 of family income

Conclusion: To Improve SAT Scores…

Be careful how you pick your parents

How to Get Funding from Foundations Be White 97% of foundation funding goes toward White-led nonprofits Be Culturally Middle Class Estimated 95% of leadership of nonprofits is culturally middle class Be Male While 58% of nonprofit executives are women, the median nonprofit income led by a man has twice the income of a nonprofit led by a woman 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

Be White

97% of foundation funding goes toward White-led nonprofits

Be Culturally Middle Class

Estimated 95% of leadership of nonprofits is culturally middle class

Be Male

While 58% of nonprofit executives are women, the median nonprofit income led by a man has twice the income of a nonprofit led by a woman

How Do We Change This?

Why Does Only 3% of Foundation Funding Go to Nonprofits Led by People of Color?

Policies: Avoid Racial Discrimination Resulting from Religious Restrictions Policies that restrict funding faith-based organizations creates 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 Not funding faith-based organizations makes White-led nonprofits twice as likely to get funded Statistics are explained in the attached spreadsheet at: www.urbanministry.org/fundingbias

Policies that restrict funding faith-based organizations creates 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

Not funding faith-based organizations makes White-led nonprofits twice as likely to get funded

Common Class Value Tensions in Organizations Non-Dominant Class Value Low Cost Low Cost Relational Relational Spontaneous Subjective Intense Hierarchical Trauma is Common Many small organizations Many Volunteers/Time’s Cheap Any Lower Class Culture/Values Dominant Class Value High Quality Speed Structured/Orderly Efficient Detached/Objective Objective Reserved Egalitarian Appearance Trauma is Avoided Big organizations Staff time is expensive Any Middle/Upper Class Culture/ Values

Non-Dominant Class Value

Low Cost

Low Cost

Relational

Relational

Spontaneous

Subjective

Intense

Hierarchical

Trauma is Common

Many small organizations

Many Volunteers/Time’s Cheap

Any Lower Class Culture/Values

Dominant Class Value

High Quality

Speed

Structured/Orderly

Efficient

Detached/Objective

Objective

Reserved

Egalitarian Appearance

Trauma is Avoided

Big organizations

Staff time is expensive

Any Middle/Upper Class Culture/ Values

Dominant Culture Outcomes vs. Non-dominant Outcomes Dominant Culture (middle & upper class) Value Big Organizations Almost no weight given to leadership being close to the community Analytical & Quantitative Nonprofit “SAT Scores” Purely Objective Criteria Secular Focused Non-Dominant Culture (lower class) 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

Dominant Culture

(middle & upper class)

Value Big Organizations

Almost no weight given to leadership being close to the community

Analytical & Quantitative

Nonprofit “SAT Scores”

Purely Objective Criteria

Secular Focused

Non-Dominant Culture

(lower class)

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

Policies to Address Systemic Bias in Funding: Diversity Profiles Foundations and government should require all funding recipients to complete diversity reporting form as part of applications All funders should publicly list their own diversity reporting form with the cumulative results of who they funded Diversity reports should carry similar weight as financial and other outcome reports and should be listed in foundation’s annual report Diversity profiles & reports become an approximate measure for many of the subjective elements that are hard to measure in other outcomes

Foundations and government should require all funding recipients to complete diversity reporting form as part of applications

All funders should publicly list their own diversity reporting form with the cumulative results of who they funded

Diversity reports should carry similar weight as financial and other outcome reports and should be listed in foundation’s annual report

Diversity profiles & reports become an approximate measure for many of the subjective elements that are hard to measure in other outcomes

Policies: “Minority Owned Business” Consideration 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)

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)

Policies: Change Funding Criteria to Reflect Community Values 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. 10% of Grant Application Weight: How closely is organization partnered with major indigenously led initiatives

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.

10% of Grant Application Weight: How closely is organization partnered with major indigenously led initiatives

Policies: Macroeconomic vs. Microeconomic Social Entrepreneurship Social entrepreneurship and traditional nonprofit outcome measures take a microeconomic perspective focused on individual organizations Need new measures of effectiveness that provide a macro perspective Need macro-tools just as social entrepreneurship brought microeconomic business tools to nonprofits

Social entrepreneurship and traditional nonprofit outcome measures take a microeconomic perspective focused on individual organizations

Need new measures of effectiveness that provide a macro perspective

Need macro-tools just as social entrepreneurship brought microeconomic business tools to nonprofits

Examples of Macro Questions Perform a study on people who made it out of poverty asking “What organizations and programs were most helpful”? Hypothesis: You might find that Black, Latino and lower class culture organizations and especially faith-based organizations provide 75% of life change while receiving 3% of foundation funding. How should we allocate funding to meet the need for after school programs when demand is more than twice supply? Hypothesis: 75% of funding goes to middle-class organizations that have a high cost per student and only serve 25% of the population, while lower-class culture serve 75% of the remaining population at a third of the cost.

Perform a study on people who made it out of poverty asking “What organizations and programs were most helpful”?

Hypothesis: You might find that Black, Latino and lower class culture organizations and especially faith-based organizations provide 75% of life change while receiving 3% of foundation funding.

How should we allocate funding to meet the need for after school programs when demand is more than twice supply?

Hypothesis: 75% of funding goes to middle-class organizations that have a high cost per student and only serve 25% of the population, while lower-class culture serve 75% of the remaining population at a third of the cost.

Policies: Adopt Strategies to Support Smaller Organizations Promote strategies to support small nonprofits View explosion in number of nonprofits as comparable to the increase in small businesses Funders should adopt strategies similar to those promoting small businesses TechMission Strategy Online Volunteer Matching: ChristianVolunteering.org AmeriCorps members to small organizations: TechMission Corps Free Grants, Jobs & Training Directories: UrbanMinistry.org

Promote strategies to support small nonprofits

View explosion in number of nonprofits as comparable to the increase in small businesses

Funders should adopt strategies similar to those promoting small businesses

TechMission Strategy

Online Volunteer Matching: ChristianVolunteering.org

AmeriCorps members to small organizations: TechMission Corps

Free Grants, Jobs & Training Directories: UrbanMinistry.org

TechMission’s Dilemma Same dilemma faced by most Black and Latino faith-based organizations Secular funders often have a bias against lower-class culture and faith-based organizations Christian resources are disproportionately distributed to White middle & upper class Christians

Same dilemma faced by most Black and Latino faith-based organizations

Secular funders often have a bias against lower-class culture and faith-based organizations

Christian resources are disproportionately distributed to White middle & upper class Christians

Funding Bias in Church Financial Resources $390 Billion Global Budgets of Christian Organizations Sources: Empty Tomb International Bulletin of Missionary Research Missions Ministry to the Poor Down from 21% in 1965

Resource Bias in Church Volunteers Source: Corporation for National and Community Service & Department of Labor Value of Faith-Based Volunteers In USA = $51.8 billion

Bias in Christian Funding Models Traditional Way to Build Large Christian Organizations Individual-centered missionary-style fundraising with thousands of individuals each raising funds for themselves Provides scalability and maximizes use of personal relationships Problem: Individual-centered missionary-style fundraising creates a strong class and racial bias Leads to staffing that is very dominated by White middle class

Traditional Way to Build Large Christian Organizations

Individual-centered missionary-style fundraising with thousands of individuals each raising funds for themselves

Provides scalability and maximizes use of personal relationships

Problem:

Individual-centered missionary-style fundraising creates a strong class and racial bias

Leads to staffing that is very dominated by White middle class

Diversity Profile at TechMission

What TechMission Can Uniquely Do to Address This? Build a highly scalable organization That has values and staff that reflect the low-income communities that we serve Provide resources to those communities Why? Capacity: Scalable resources from National Service Movement and Technology Values: Foundation in Black, Latino and Low Income Churches

Build a highly scalable organization

That has values and staff that reflect the low-income communities that we serve

Provide resources to those communities

Why?

Capacity: Scalable resources from National Service Movement and Technology

Values: Foundation in Black, Latino and Low Income Churches

Appendix

Understanding Class as Culture: Opposing/Contrasting Class Values Non-Dominant Class Value Relating to Others Spontaneous Relational Intense Community/Family Reliance Friendliness Cooperation Relating to the World Respect for Authority/Hierarchy Patience Trauma is common Work is a Means Sharing Contentment Negative Addictions Dominant Class Value Relating to Others Structured order & planning Objectively Detached Reserved Self Reliance/Independence Privacy Competition Relating to the World Egalitarian Efficiency Trauma is avoided Work is an End/Identity Strong Property Rights Active Problem Solving “ Positive” Addictions

Non-Dominant Class Value

Relating to Others

Spontaneous

Relational

Intense

Community/Family Reliance

Friendliness

Cooperation

Relating to the World

Respect for Authority/Hierarchy

Patience

Trauma is common

Work is a Means

Sharing

Contentment

Negative Addictions

Dominant Class Value

Relating to Others

Structured order & planning

Objectively Detached

Reserved

Self Reliance/Independence

Privacy

Competition

Relating to the World

Egalitarian

Efficiency

Trauma is avoided

Work is an End/Identity

Strong Property Rights

Active Problem Solving

“ Positive” Addictions

Understanding Class as Culture: Opposing/Contrasting Class Values Non-Dominant Class Value Thinking/Perception Subjective Qualitative Holistic Practical Community Communication Honesty and Directness Oral Tradition and Storytelling Simplified/Slang Vocabulary Dominant Class Value Thinking/Perception Objective Quantitative Analytical/Compartmentalized Theoretical Individual Communication Politeness and Tact Written Tradition Larger/Standardized Vocabulary Source: http://www.urbanministry.org/reconciliation-across-social-class http://www.techmission.org/presentations/social_class_for_ccda_v2.ppt

Non-Dominant Class Value

Thinking/Perception

Subjective

Qualitative

Holistic

Practical

Community

Communication

Honesty and Directness

Oral Tradition and Storytelling

Simplified/Slang Vocabulary

Dominant Class Value

Thinking/Perception

Objective

Quantitative

Analytical/Compartmentalized

Theoretical

Individual

Communication

Politeness and Tact

Written Tradition

Larger/Standardized Vocabulary

Diversity in Foundations 86% of board members are White 94% of foundation presidents are White Virtually all funds come from the middle and upper class Result: values of foundations will reflect White upper class values http://www.slideshare.net/rosettathurman/race-matters-in-nonprofits-promoting-diversity-in-our-profession

86% of board members are White

94% of foundation presidents are White

Virtually all funds come from the middle and upper class

Result: values of foundations will reflect White upper class values