Race Class Gender Faith & Nonprofit Funding
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Race Class Gender Faith & Nonprofit Funding






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Race Class Gender Faith & Nonprofit Funding Race Class Gender Faith & Nonprofit Funding Presentation Transcript

  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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)
  • 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
  • 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
  • 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.
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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
  • 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