With race-based equity initiatives facing renewed challenges, marginalized and divested communities must see unwavering support from philanthropic foundations.
In June, the 11th Circuit Court of Appeals in Georgia upheld a preliminary injunction against the Fearless Fund, a grant-making organization supporting businesses led by women of color.
This decision, coupled with the Supreme Court’s ruling on affirmative action, has created a chilling effect on philanthropy, prompting some foundations to step back from equity work. We encourage our philanthropic peers to join us in reaffirming our commitment to equity-centered grantmaking and endowment investments in BIPOC-led funds.
Historical inequities and the need for equity-centered giving
The wealth disparities we witness today are deeply rooted in historical inequities. For centuries, systemic racism and discriminatory policies have enabled white people to accumulate wealth and resources, while people of color, particularly Black women, have been systematically excluded from these opportunities.
This history is reflected in our foundation, the William Caspar Graustein Memorial Fund, established through the wealth accumulated by Archibald R. Graustein, who benefited from the opportunities available to him as a white man. Much of philanthropy’s accumulated wealth comes from similar pathways, benefiting white men to the exclusion of others.
The work of the Fearless Fund is not discriminatory; it is about rectifying the generational impact of centuries of discrimination. Programs like the Fearless Fund are designed to level the playing field, providing opportunities for Black women and other marginalized and divested groups to thrive in spaces where they have been historically underrepresented and underserved.
Supporting Black women: A moral and economic imperative
Although Black women are the fastest-growing demographic in entrepreneurship, only 3 percent of mature businesses are owned by them. This highlights the unique challenges and barriers they face in accessing opportunities.
Black business owners are rejected for funding at a rate three times higher than their white counterparts, resulting in 61 percent of Black women needing to self-fund their businesses, despite being paid 37 percent less than white men. In many cases, Black business owners are the first in their families to delve into entrepreneurship. The challenges faced are direct results of the racial wealth gap, creating roadblocks for Black women when building and owning capital.
Foundations have a moral obligation to address these inequalities, but there is also an economic incentive. When Black businesses succeed, their communities thrive. Black businesses are likely to reinvest in their communities, create jobs, and drive economic growth. According to the Brookings Institution, Black-owned businesses had more pronounced increases in revenue, employees, and payroll than other racial groups.
A time for courage
Despite the ongoing legal process, we must stay committed to our course. Foundations, by their very nature, can absorb risk. With our significant resources, we are uniquely positioned to support innovative and bold initiatives to drive social change.
We must lead from the front and not let the fear of national politics deter us from this essential work. Black and brown people are courageously fighting these inequities every day; they need to know that we will continue to stand with them.
In a time when many are retreating from diversity, inclusion, and equity work, philanthropy must step more boldly into addressing structural inequities and systemic oppression. The legal battles may seem daunting, and the cautious path may seem easier to tread, but the mission of equity and justice is far too important to abandon.
Philanthropy has a moral obligation to both actively support those working to address the legacies of structural discrimination, like the Fearless Fund, and to directly address those same systems ourselves.
Only by boldly working together can we address centuries of historical injustices and create a future in which we all thrive. It is time that we remain fearless, together.
Christianna Connery is Grant Officer for the William Caspar Graustein Memorial Fund.
