Race Class Gender Faith & Nonprofit Funding

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  • Race Class Gender Faith & Nonprofit Funding

    1. 1. Andrew Sears Executive Director TechMission Race, Class, Gender & Faith Bias in Nonprofit Funding
    2. 2. Why TechMission Is Addressing This Issue? <ul><li>TechMission primarily supports Black and Latino-led nonprofits that are close to the community </li></ul><ul><li>We have seen how these nonprofits are experiencing systemic issues with bias in funding of nonprofits </li></ul><ul><li>In a down economy, we are observing an increasing bias towards big (i.e. White) organizations </li></ul><ul><li>Many of our partner sites are struggling to stay functional </li></ul>
    3. 3. Why TechMission Can Speak to This Issue? <ul><li>TechMission’s organizational culture reflects lower class culture </li></ul><ul><ul><li>Nearly all of board and senior staff are Black, Latino and/or come from low-income background </li></ul></ul><ul><ul><li>ED is White from lower class background </li></ul></ul><ul><ul><li>TechMission Corps AmeriCorps members are 62% Black and Latino with 50% from low-income backgrounds </li></ul></ul><ul><li>TechMission has one of the widest spans of connection with grass roots organizations (over 4,000 registered nonprofits) </li></ul><ul><ul><li>UrbanMinistry.org being the Black/Latino counterpart to Idealist.org and VolunteerMatch.org </li></ul></ul><ul><li>Leadership has extensive experience on writing about and living out reconciliation across race, class and gender </li></ul>
    4. 4. Nonprofit Leadership Does Not Reflect Racial Community it Serves Source: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
    5. 5. Nonprofit Statistics and Race <ul><li>1.4 million registered nonprofits in USA </li></ul><ul><ul><li>1,169,000 White-led nonprofits </li></ul></ul><ul><ul><li>138,600 Black-led nonprofits </li></ul></ul><ul><ul><li>50,400 Latino-led nonprofits </li></ul></ul><ul><ul><li>12,600 nonprofits led by other races </li></ul></ul>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% 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
    7. 7. Most Nonprofits: Have a Different Class Culture than Clients Leadership Clients Leadership Leadership Leadership White Black Latino Asian Upper Middle Lower
    8. 8. TechMission’s Focus & Other Lower Class Culture Nonprofits Leadership and clients White Black Latino Asian Upper Middle Lower
    9. 9. 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
    10. 10. Funding and Gender From: http://www.aecf.org/upload/publicationfiles/executive_transition_survey_report2004.pdf
    11. 11. How to Perform on the SAT Test <ul><li>Be White or Asian </li></ul><ul><ul><li>150-200 point increase </li></ul></ul><ul><li>Be Rich </li></ul><ul><ul><li>30 points per $10,000 of family income </li></ul></ul><ul><li>Conclusion: To Improve SAT Scores… </li></ul><ul><ul><li>Be careful how you pick your parents </li></ul></ul>Source: http://www.maec.org/natstats.html & http://www.educationanddemocracy.org/testing_facts.pdf
    12. 12. How to Get Funding from Foundations <ul><li>Be White </li></ul><ul><ul><li>97% of foundation funding goes toward White-led nonprofits </li></ul></ul><ul><li>Be Culturally Middle Class </li></ul><ul><ul><li>Estimated 95% of leadership of nonprofits is culturally middle class </li></ul></ul><ul><li>Be Male </li></ul><ul><ul><li>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 </li></ul></ul>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
    13. 13. How Do We Change This?
    14. 14. Why Does Only 3% of Foundation Funding Go to Nonprofits Led by People of Color?
    15. 15. Policies: Avoid Racial Discrimination Resulting from Religious Restrictions <ul><li>Policies that restrict funding faith-based organizations creates an unintentional bias toward White-led organization </li></ul><ul><li>How it works </li></ul><ul><ul><li>About 2/3 of Black-led nonprofits are in churches or other faith-based organizations </li></ul></ul><ul><ul><li>About 2/3 of White-led nonprofits are secular </li></ul></ul><ul><ul><li>Not funding faith-based organizations makes White-led nonprofits twice as likely to get funded </li></ul></ul>Statistics are explained in the attached spreadsheet at: www.urbanministry.org/fundingbias
    16. 16. Common Class Value Tensions in Organizations <ul><li>Non-Dominant Class Value </li></ul><ul><li>Low Cost </li></ul><ul><li>Low Cost </li></ul><ul><li>Relational </li></ul><ul><li>Relational </li></ul><ul><li>Spontaneous </li></ul><ul><li>Subjective </li></ul><ul><li>Intense </li></ul><ul><li>Hierarchical </li></ul><ul><li>Trauma is Common </li></ul><ul><li>Many small organizations </li></ul><ul><li>Many Volunteers/Time’s Cheap </li></ul><ul><li>Any Lower Class Culture/Values </li></ul><ul><li>Dominant Class Value </li></ul><ul><li>High Quality </li></ul><ul><li>Speed </li></ul><ul><li>Structured/Orderly </li></ul><ul><li>Efficient </li></ul><ul><li>Detached/Objective </li></ul><ul><li>Objective </li></ul><ul><li>Reserved </li></ul><ul><li>Egalitarian Appearance </li></ul><ul><li>Trauma is Avoided </li></ul><ul><li>Big organizations </li></ul><ul><li>Staff time is expensive </li></ul><ul><li>Any Middle/Upper Class Culture/ Values </li></ul>
    17. 17. Dominant Culture Outcomes vs. Non-dominant Outcomes <ul><li>Dominant Culture </li></ul><ul><li>(middle & upper class) </li></ul><ul><li>Value Big Organizations </li></ul><ul><li>Almost no weight given to leadership being close to the community </li></ul><ul><li>Analytical & Quantitative </li></ul><ul><ul><li>Nonprofit “SAT Scores” </li></ul></ul><ul><li>Purely Objective Criteria </li></ul><ul><li>Secular Focused </li></ul><ul><li>Non-Dominant Culture </li></ul><ul><li>(lower class) </li></ul><ul><li>Cost effectiveness </li></ul><ul><li>Is leadership close to the community? </li></ul><ul><ul><li>Race of leadership (staff/board) </li></ul></ul><ul><ul><li>Class background of leadership </li></ul></ul><ul><ul><li>Neighborhood they live in </li></ul></ul><ul><li>Holistic </li></ul><ul><ul><li>Has a Life been Changed </li></ul></ul><ul><li>Subjective </li></ul><ul><li>Faith-Based & Secular </li></ul>
    18. 18. Policies to Address Systemic Bias in Funding: Diversity Profiles <ul><li>Foundations and government should require all funding recipients to complete diversity reporting form as part of applications </li></ul><ul><li>All funders should publicly list their own diversity reporting form with the cumulative results of who they funded </li></ul><ul><li>Diversity reports should carry similar weight as financial and other outcome reports and should be listed in foundation’s annual report </li></ul><ul><ul><li>Diversity profiles & reports become an approximate measure for many of the subjective elements that are hard to measure in other outcomes </li></ul></ul>
    19. 19. Policies: “Minority Owned Business” Consideration for Nonprofits <ul><li>If the Government gives preference to minority owned businesses in contracts, shouldn’t that be a consideration with nonprofits? </li></ul><ul><li>Nonprofits that closely reflect the demographics of the communities they are serving should be given preference (affirmative action in nonprofit funding) </li></ul>
    20. 20. Policies: Change Funding Criteria to Reflect Community Values <ul><li>Example from TechMission’s Grant Applications </li></ul><ul><ul><li>20% of Grant Application Weight: Is leadership close to the community as reflected in their diversity profile and strategy? </li></ul></ul><ul><ul><ul><li>Use diversity profile form and grant questions </li></ul></ul></ul><ul><ul><li>20% of Grant Application Weight: Is organization serving the highest risk community? </li></ul></ul><ul><ul><ul><li>Require detailed criteria to distinguish at-risk vs. high risk, etc. </li></ul></ul></ul><ul><ul><li>10% of Grant Application Weight: How closely is organization partnered with major indigenously led initiatives </li></ul></ul>
    21. 21. Policies: Macroeconomic vs. Microeconomic Social Entrepreneurship <ul><li>Social entrepreneurship and traditional nonprofit outcome measures take a microeconomic perspective focused on individual organizations </li></ul><ul><li>Need new measures of effectiveness that provide a macro perspective </li></ul><ul><ul><li>Need macro-tools just as social entrepreneurship brought microeconomic business tools to nonprofits </li></ul></ul>
    22. 22. Examples of Macro Questions <ul><li>Perform a study on people who made it out of poverty asking “What organizations and programs were most helpful”? </li></ul><ul><ul><li>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. </li></ul></ul><ul><li>How should we allocate funding to meet the need for after school programs when demand is more than twice supply? </li></ul><ul><ul><li>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. </li></ul></ul>
    23. 23. Policies: Adopt Strategies to Support Smaller Organizations <ul><li>Promote strategies to support small nonprofits </li></ul><ul><ul><li>View explosion in number of nonprofits as comparable to the increase in small businesses </li></ul></ul><ul><ul><li>Funders should adopt strategies similar to those promoting small businesses </li></ul></ul><ul><li>TechMission Strategy </li></ul><ul><ul><li>Online Volunteer Matching: ChristianVolunteering.org </li></ul></ul><ul><ul><li>AmeriCorps members to small organizations: TechMission Corps </li></ul></ul><ul><ul><li>Free Grants, Jobs & Training Directories: UrbanMinistry.org </li></ul></ul>
    24. 24. TechMission’s Dilemma <ul><li>Same dilemma faced by most Black and Latino faith-based organizations </li></ul><ul><ul><li>Secular funders often have a bias against lower-class culture and faith-based organizations </li></ul></ul><ul><ul><li>Christian resources are disproportionately distributed to White middle & upper class Christians </li></ul></ul>
    25. 25. 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
    26. 26. 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
    27. 27. Bias in Christian Funding Models <ul><li>Traditional Way to Build Large Christian Organizations </li></ul><ul><ul><li>Individual-centered missionary-style fundraising with thousands of individuals each raising funds for themselves </li></ul></ul><ul><ul><li>Provides scalability and maximizes use of personal relationships </li></ul></ul><ul><li>Problem: </li></ul><ul><ul><li>Individual-centered missionary-style fundraising creates a strong class and racial bias </li></ul></ul><ul><ul><li>Leads to staffing that is very dominated by White middle class </li></ul></ul>
    28. 28. Diversity Profile at TechMission
    29. 29. What TechMission Can Uniquely Do to Address This? <ul><li>Build a highly scalable organization </li></ul><ul><li>That has values and staff that reflect the low-income communities that we serve </li></ul><ul><li>Provide resources to those communities </li></ul><ul><li>Why? </li></ul><ul><ul><li>Capacity: Scalable resources from National Service Movement and Technology </li></ul></ul><ul><ul><li>Values: Foundation in Black, Latino and Low Income Churches </li></ul></ul>
    30. 30. Appendix
    31. 31. Understanding Class as Culture: Opposing/Contrasting Class Values <ul><li>Non-Dominant Class Value </li></ul><ul><li>Relating to Others </li></ul><ul><li>Spontaneous </li></ul><ul><li>Relational </li></ul><ul><li>Intense </li></ul><ul><li>Community/Family Reliance </li></ul><ul><li>Friendliness </li></ul><ul><li>Cooperation </li></ul><ul><li>Relating to the World </li></ul><ul><li>Respect for Authority/Hierarchy </li></ul><ul><li>Patience </li></ul><ul><li>Trauma is common </li></ul><ul><li>Work is a Means </li></ul><ul><li>Sharing </li></ul><ul><li>Contentment </li></ul><ul><li>Negative Addictions </li></ul><ul><li>Dominant Class Value </li></ul><ul><li>Relating to Others </li></ul><ul><li>Structured order & planning </li></ul><ul><li>Objectively Detached </li></ul><ul><li>Reserved </li></ul><ul><li>Self Reliance/Independence </li></ul><ul><li>Privacy </li></ul><ul><li>Competition </li></ul><ul><li>Relating to the World </li></ul><ul><li>Egalitarian </li></ul><ul><li>Efficiency </li></ul><ul><li>Trauma is avoided </li></ul><ul><li>Work is an End/Identity </li></ul><ul><li>Strong Property Rights </li></ul><ul><li>Active Problem Solving </li></ul><ul><li>“ Positive” Addictions </li></ul>
    32. 32. Understanding Class as Culture: Opposing/Contrasting Class Values <ul><li>Non-Dominant Class Value </li></ul><ul><li>Thinking/Perception </li></ul><ul><li>Subjective </li></ul><ul><li>Qualitative </li></ul><ul><li>Holistic </li></ul><ul><li>Practical </li></ul><ul><li>Community </li></ul><ul><li>Communication </li></ul><ul><li>Honesty and Directness </li></ul><ul><li>Oral Tradition and Storytelling </li></ul><ul><li>Simplified/Slang Vocabulary </li></ul><ul><li>Dominant Class Value </li></ul><ul><li>Thinking/Perception </li></ul><ul><li>Objective </li></ul><ul><li>Quantitative </li></ul><ul><li>Analytical/Compartmentalized </li></ul><ul><li>Theoretical </li></ul><ul><li>Individual </li></ul><ul><li>Communication </li></ul><ul><li>Politeness and Tact </li></ul><ul><li>Written Tradition </li></ul><ul><li>Larger/Standardized Vocabulary </li></ul>Source: http://www.urbanministry.org/reconciliation-across-social-class http://www.techmission.org/presentations/social_class_for_ccda_v2.ppt
    33. 33. Diversity in Foundations <ul><li>86% of board members are White </li></ul><ul><li>94% of foundation presidents are White </li></ul><ul><li>Virtually all funds come from the middle and upper class </li></ul><ul><li>Result: values of foundations will reflect White upper class values </li></ul>http://www.slideshare.net/rosettathurman/race-matters-in-nonprofits-promoting-diversity-in-our-profession

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