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Dec. 11, 2000
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Charitable organizations failing to fully tap minority resources

Nearly all types of charitable groups need to focus more attention on minority issues and do more to target minority communities, if they want to maximize donations, according to information provided in a number of recent reports.

For example, the "Cultures of Caring" report released last year found that an increasing percentage of charitable contributions are coming from minorities, but nonprofits aren't taking advantage of that demographic change, the Pittsburgh Post-Gazette reports.

The report -- prepared by the Council on Foundations and funded by the Ford, W.K. Kellogg and David and Lucile Packard foundations -- reported that part of the problem is that many foundations are still staffed primarily by whites, which can lead to an unintended disconnect with various ethnic groups.

"At the community foundations studied in the report, only 24 percent of the board of trustee positions were filled by minorities. And only 32 percent of the staff positions at these foundations were filled by minorities," the Post-Gazette reports.

Likewise, the percentage of foundation grants to minority concerns were also found to be comparatively lower, according to a report released by the White House Council of Economic Advisers.

The new "Philanthropy in the American Economy" report (which requires the free Adobe Acrobat Reader software to view) states that "Minorities are an underused resource with respect to philanthropic giving ... By addressing the needs and concerns of minorities, charitable institutions can substantially increase the contributions of these groups."

Another aspect of this issue is that many minority donors give to local groups, and do so in informal ways that are hard to track in terms of larger statistical surveys.

"[Minorities] are used to giving in a very quiet way. They're not as interested in tax write-offs for their donations," said Diana Newman, founder of the Columbus, Ohio-based Philanthropic Resource Group.

Community foundations have, however, shown measurable increases in giving to minority causes, the newspaper reports. An outreach effort by some of these foundations that began about 15 years ago is being credited with the increase. Funds from "ethnically diverse" donors have risen from 100 funds at 22 community foundations in 1993 to 639 funds at 72 community foundations in 1998, the newspaper reports.

Full text of the article is currently found at:
http://www.post-gazette.com/headlines/
20001203charity2



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RELEVANT LINKS:
"Cultures of Caring"
Council on Foundations
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David and Lucile Packard Foundation
"Philanthropy in the American Economy"
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