Open for Transformational Change: How Foundation Transparency Sets the Stage for Diversity, Equity, Inclusion, and Justice
Whitney Tome is the executive director of Green 2.0, a campaign dedicated to increasing the racial diversity of mainstream environmental NGOs, foundations and federal government agencies through data transparency, accountability, and increased resources.
Philanthropy invests billions of dollars into charitable causes each year. According to Foundation Center, foundations gave an estimated $59.28 billion in 2016. That’s a tremendous amount of capital. For better or worse, the field of philanthropy is a leader in determining what’s important and how social change happens. Whoever holds the purse also holds the power. And with power comes responsibility for foundations to set the gold standard, especially for diversity, equity, inclusion, and justice (DEIJ).
In my role as executive director of Green 2.0, I spend a lot of time helping foundations better understand how improved foundation transparency around DEIJ can position philanthropy to lead by example instead of just playing catch up, or worse, just going through the motions. Though we focus on the environmental field, what we have learned in the process can serve as a helpful example for all of philanthropy because every sector has been influenced by the power and privilege that exist in our society.
“Being transparent about the demographics of foundation staff and boards…can spur a review of recruitment and hiring process to reduce implicit biases.”
So what have we learned? The environmental movement, in particular, has failed to adequately represent people of color. In 2014, Green 2.0 commissioned “The State of Diversity in Environmental Organizations” report authored by Dr. Dorceta Taylor, which found that while people of color are 36% of the U.S. population, they only comprise 12% of foundation staff in the world of environmental funding. And ample studies have shown that communities of color are disproportionately affected by environmental hazards. Green 2.0 envisions a different, more diverse movement that wins environmental battles for those most impacted. To catalyze transformational change, Green 2.0 works to increase the racial and ethnic diversity in the mainstream environmental movement. We call for data transparency, accountability, and increased resources to ensure NGOs and foundations are diverse.
As the sustained drumbeat to improve workplaces and increase opportunities for talented people of color, Green 2.0 engages with environmental NGOs and foundations by calling on them to share their demographic data year after year. This is not just transparency for transparency’s sake. We find there are direct benefits to this kind of transparency that spurs change for the better as outlined below. But there is still lots of room for improvement.
Since 2014, only 12 of the Top 40 environmental foundations have answered the call. Given the benefits of transparency to the DEIJ movement, it is important that both GuideStar and Glasspockets encourage disclosures pertaining to diversity data in their respective profiles. In the case of Glasspockets, the transparency self-assessment covers disclosures about both diversity values statements and demographic data, and what we have learned here is it remains a challenge for the field as a whole with fewer than half of participating foundations reporting any kind of values statement, and fewer than 10 percent disclosing any demographic data at all. And out of a universe of more than 86,000 foundations, only 500 foundations have willingly submitted their demographic data to GuideStar via their profile page demonstrating that this is a challenge for all foundations.
- Being transparent about the demographics of foundation staff and boards. Greater transparency can spur a review of recruitment and hiring process to reduce implicit biases but also allow foundations to identify the full range of organizations they should be supporting.
- Encouraging grantees to submit their diversity data and communicate how they are working on diversity, equity, inclusion, and justice both internally and externally. As funders, foundations are uniquely suited to holding grantees accountable for advancing a more diverse environmental movement.
- Recognizing your role as leaders in the field that influence the whole. When foundations make a move and engage deeply on issues, others follow suit. Foundations have an opportunity and responsibility to show the field the value of diversity through its action and set the standard on recruiting, attracting, and retaining talented people of color.
In order to see transformational change, foundations need to make a real commitment to diversity, equity, inclusion, and justice, internally. That’s more than providing lip service to the value of diversity. It is rather embedding equity and justice in the practices, policies and procedures of the organization and for foundations also into their grantmaking. Ask your foundation simple questions that may result in complex but informative answers as a start:
- Are you tracking the data of your staff and board?
- Do you have an organizational vision and/or mission around diversity, equity, inclusion, and justice?
- Is there authentic leadership on DEIJ issues and are they holding the organization and themselves accountable for change?
- Are your internal policies for attracting, recruiting, hiring, promoting and retaining staff transparent, equitable and consistently implemented?
- Are you assessing your organizational culture and making constant adjustments to achieve your vision?
- Are you tracking the demographic makeup of your grantees? Are you sharing those statistics with program officers? Are you using this to inform future grantmaking?
Several foundations have made or are starting to ask these questions, but many are not public about them. From sharing the demographic data of their grantees to intentional recruiting and hiring staff of color, these foundations are changing their focus and what they fund. One foundation has been collecting the demographic data of their staff and grantees for several years; and sharing that data with grantees and program officers. This data gives program officers insight into where the dollars are going, how to shift their portfolio over time, and for their grantees they can now compare themselves to other organizations in the field. As a foundation, they have engaged in more DEIJ conversations internally and externally from how they support racial equity through funding to how they support the internal DEIJ work of grantees. This has spurred important conversation and reflection about funding, commitment, and action that this foundation is digging into and learning from every year. More need to start this conversation and be public about the answers that they are coming to.
Green 2.0 will continue to advance enduring change in the environmental movement broadly but we call on foundations to dedicate the time and resources needed to change the face of philanthropy to one that is more diverse, equitable, inclusive, and just.