At the Black Innovation Alliance, we asked our members to share their best thinking on what funders need to know before funding programs in communities of color, and this is what we heard.
While the advice is offered with philanthropy in mind, it could be extended to investors and others likewise looking to explore opportunities within the places we serve. We invite you to listen and learn.
1) We are Communal by Nature.
Individualism is a Western concept that holds little resonance in communities of color. When it comes to Black people, in particular, our survival in this country has always been contingent upon the community. We feel a unique kinship to one another which often permeates the professional choices we make. At this moment especially, people of color are leaning into new ways of being and doing which prioritize collaboration, mutualism, and collective uplift.
2) Friends and Family Investment Looks Different Here.
It’s widely appreciated in funding circles that due to the history of American racism; Black and Brown people have been excluded from generational wealth creation and therefore lack access to the “friends and family” investment round. What is less appreciated is the fact that those same founders are often looked to for financial assistance from friends and family who continue to struggle. The economic models are often inverted in communities of color. Lack of knowledge of these realities perpetuate inequities and further stymie change efforts.
3) Leadership is Forged in Formal and Informal Ways.
In communities of color, we experience a lack of resources, not a lack of talent. Because our leaders don’t have the same pathways to leadership as our white counterparts, our resumes will look different. But that doesn’t mean that we’re any less capable. When you live and work in a community, your life becomes a practicum.
4) Cultural Competency is Key.
Every community has its own set of norms and values which influence how things get done. This is especially true in communities of color where historical deprivation and marginalization has forced people to find creative ways to get things done. When funders seek grantmaking opportunities with their unconscious bias in tow, they see opportunities as challenges, resourcefulness as limited thinking and low-capacity as low-impact. Having some level of cultural competency is a baseline for funding impactful work in communities of color.
5) We Have to Build Things That Already Exist in other Communities.
Quality schools. Safe play. Well-stocked grocery stores. Network-based internships. Reliable wi-fi. All things that people living in well-resourced communities take for granted. Generally speaking, children of privilege don’t grow up wondering how they will create a world where you don’t have to boil your water before they drink it! Leaders of color today are working to build the sort of community infrastructure that should already exist but doesn’t. We require resources to “build” instead of resources to “patch”.
6) We Have BackChannels Too.
Organizations develop reputations, but so do funders. There are funders and investors, who are universally praised and respected for how they support work in communities of color, and then there are those who are avoided at all cost because they are considered bad actors which despite their investment, have a penchant for causing harm. Funders would do well to gather feedback from their grantees and partners on how they are perceived. Many would-be surprised by what they hear.
7) Our Communities Are Valuable.
Yes, the earnings and wealth gaps within our communities are real. But make no mistake, we are sitting on veritable gold mines. According to a recent study by Morgan Stanley, “multicultural and women-owned businesses could account for $6.8 trillion in gross receipts if they matched their percentage of the labor force and business revenues were equal to traditional firms”. And according to Nielsen, Black buying power is expected to reach $1.8 trillion by 2024. The economic value of the Black community in particular often gets lost in the disparity studies.
8) Funding White-Led Organizations to Implement Programs in Communities of Color Can Be Problematic.
Leaders of color have more than their fair share of cringe-worthy anecdotes of white-led intermediaries receiving six, seven, even eight figures to implement programming in communities of color – often with tragic results. Lacking the cultural awareness or knowledge of the local scene, these organizations lean on Black-led organizations for their context and contacts, expecting them to be a “good partner” yet providing nothing in return. Such experiences are extractive and dangerous. Organizations of color should be looked-to to lead large-scale efforts in communities of color, not to do the heavy lifting while other organizations expensively fumble their way through it.
9) Leaders of Color Require Other Modes of Support.
James Baldwin, writing from his home in France said this about being a Black intellectual, “In America, I was free only in battle, never free to rest — and he who finds no way to rest cannot long survive the battle.” The challenges of leading change work in communities of color provide a ready-made recipe for burnout. Funders are encouraged to find expansive ways to support the long-term leadership of those in this field given that the success of this work depends on their ability to stay well and sustain.
10) The Solutions Live Within Us.
The answers to the most dogged challenges facing communities of color lie within communities of color. Not only are our leaders closest to the problem, but many of us have had the opportunity to live in other worlds and bring those insights back. There is a tremendous amount of innovation being deployed with the capacity for scale and widespread impact. When leaders of color are seen for the resource they are – and supported accordingly – the communities they serve will truly begin to turn the corner.
