The inequities laid bare by the COVID-19 pandemic have led philanthropy to evolve and reimagine its work in a multitude of ways, especially as we work to advance racial equity.

Exponent Philanthropy’s new publication, Mind the Gap: Exploring the Role of Diversity and Racial Equity in Leanly Staffed Foundations, shares research on leanly staffed foundation demographics and how lean funders are approaching racial equity in their work.

Exponent Philanthropy, a partner of CMF, is a national membership organization with programs and resources designed specifically for funders working with limited infrastructure. 

The publication highlights Exponent’s most recent findings through its annual Foundation Operations and Management Report (FOMR), surveys and interviews with members. 

We’re sharing key data points and takeaways from the publication.

Key takeaways on the behavioral practices of funders surveyed:

•    73% of foundations reported racial equity as being somewhat relevant or very relevant to their mission compared to 65% in the previous year. 

•    25% of foundations shared that they do have an institutional commitment to addressing/ eliminating inequities. 

•    64% of foundations shared they do have authentic relationships with members of the communities they serve. 

•    36% shared that their board and staff have a strong understanding of the social, environmental and structural determinants of racial and ethnic inequities.

The publication highlights the findings collected from the 2021 FOMR on the board and staff demographics of participating leanly staffed member foundations:

•    72% of foundations have boards entirely made up of people who identify as white.

•    12% of foundations’ boards include one member who identifies as a person of color, and 3% of foundations have a board whose members all identify as people of color. 

•    Independent foundations have a higher percentage of Latinx and Black, Indigenous and People of Color (BIPOC) board members than family foundations and other types of foundations.

•    74% of participating staffed foundations have no paid staff who identify as BIPOC.

•    11% with a full-time CEO have someone in that role who identifies as BIPOC. 

•    15% of foundations have at least one professional/grantmaking staff member who identifies as BIPOC, and 26% have at least one BIPOC administrative/support staff member.

“We’ve seen in our data over the past few years that more lean funders are recognizing the importance of racial equity in their work. But we haven’t seen any significant shifts in the board or staff demographics of leanly staffed foundations,” Brendan McCormick, manager, research and education, Exponent Philanthropy told CMF.

McCormick works with Exponent Philanthropy’s staff, members and partners to develop resources grounded in research that relate to impact and evaluation and foundation investments. He also leads Exponent Philanthropy’s efforts to learn more about its community of lean funders.

“If funders want to advance racial equity, they can’t just look at their outward-facing practices, they also need to look internally at who holds power and why,” McCormick said. 

The publication outlines how foundations can integrate racial equity practices into their grantmaking in a variety of ways, highlighting catalytic philanthropy.

“Lean funders who are catalytic have shifted their philanthropy from a transactional, year-to-year practice of reviewing proposals and writing checks to a more transformational enterprise that engages people and stakeholders over years or decades,” the report states.

Key takeaways on grantmaking from the funders surveyed:

•    Foundations indicating that racial equity is very relevant to their mission are more likely to fund community organizing or movement building.

•    Foundations reporting that racial equity is somewhat relevant to their mission are more likely to streamline or simplify grant requirements. 

•    Foundations indicating that racial equity is very relevant to their mission are more likely to engage constituents in the grantmaking process.

•    Foundations stating that racial equity is somewhat relevant to their mission are more likely to collaborate with other funders.

•    Foundations reporting that racial equity is very relevant to their mission are more likely to meet with policymakers or politicians to educate them about an issue.

•    88% of foundations make grants that support children and youths and 78% make grants to support economically disadvantaged populations.

In conclusion the publication states that lean funders are increasingly focusing on racial equity, an essential part of philanthropy. 

“Not only is racial equity work in philanthropy important but it is necessary. Advancing diversity, equity and inclusion is a key component of catalytic philanthropy,” Afia Amobeaa-Sakyi, director, equity and inclusion, Exponent Philanthropy told CMF.

Amobeaa-Sakyi plays a critical role in shaping and sustaining an inclusive and equitable culture at Exponent Philanthropy, and among their community of lean funders and external stakeholders.

“Lean funders are well positioned to nurture and support leaders of color as well as small, dynamic grassroots organizations. Lean funders also are in a good position to engage grantees and members of the community in decision making,” Amobeaa-Sakyi said.

Want more?

Download the full publication.

CMF partnered with Exponent Philanthropy to offer the “Advocacy Field Guide for Lean Funders” to our community of philanthropy at no cost. Developed by Exponent Philanthropy and authored in partnership with Frontera Strategy, the guide features a set of seven practical, field-tested steps to engage in advocacy by leveraging the knowledge of your local community, your relationships and your voice. Access the guide.