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Minority-led nonprofits lack funding

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Minorities are a fast-growing segment of the U.S. populations, now comprising almost one in three Americans, but foundation funding for minority-led nonprofits is weak, a new study says.

Independent foundations awarded 3 percent of their grant dollars and 4.3 percent of their grants to minority-led nonprofits, says a new study by the Greenlining Institute in Berkeley, Calif.

The study, “Fairness in Philanthropy,” analyzes grantmaking data from the 50 largest independent foundations in the U.S. and the 25 largest community foundations.

Community foundations awarded 3 percent of their grant dollars and 2 percent of grants to minority-led groups, the study says.

Five of the largest independent awarded no grants to such groups.

Corporate foundations are better supporters of minority groups, the study says, with the Verizon Foundation directing almost three in four of its contributions to minority groups.

To improve funding, the Institute suggests establishing a task force to discuss diversity, encourages foundations to conduct self-assessments of grants to nonprofits, track grants and set goals for grantmaking to minority groups.

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