AB 624 would apply to private, public, and corporate foundation with assets over $250,000,000 based in California.Summary of each point in the bill. This document provides a summary of the bill.
After decades of complaints from the diverse non-profit community, The Greenlining Institute conducted a study in 2005 of the 50 largest foundations in the country to quantify their giving to minority-led organizations. The report, Fairness in Philanthropy, found that minority-led organizations received just 3% of total grant dollars from the nation’s largest foundations. Greenlining conducted a similar report in 2006 that found 3.6% of grant dollars going to minorityled organizations. Although Greenlining’s methodology differed from previous reports on grant giving to communities of color, the findings were very similar – communities of color were being “short changed” by foundations.
Greenlining believes that greater transparency and accountability from foundations regarding their diversity practices will greatly improve their impact in serving lower-income and minority communities. Read excerpts of the opinions of others who agree.
The Greenlining Institute proposed “sunshine” legislation that would require large foundations operating in California to gather and disclose pertinent diversity data. This legislation does not require foundations to invest in minority communities, and it does not create racial quotas for grant-making and employment. This legislation is a simple attempt to get foundations to disclose key data related to diversity on an annual basis. Find out why we decided to sponsor the legislation.
The Community Action Plan on Philanthropy is Greenlining’s first attempt to summarize the feedback we received from 300 community leaders in multiple convenings held across California on issues related to philanthropic support for minority nonprofits.
In December 2008, a group of nine wealthy California foundations, under the umbrella of the “Foundation Coalition”, announced new plans to invest in minority-led nonprofit organizations. This coalition was formed in response to Greenlining-led legislation that would have required foundations to simply disclose diversity data on an annual basis. Overall, the new grant making programs announced by the nine foundations will total $30 million over the next two to three years. Greenlining’s reaction to the announcement is mixed. While we are pleased to see foundations finally working together to address a critical issue for communities of color, we were disappointed that the agreement was limited to “capacity building” and did not take into account larger issues around equity and diversity. Most notably, there are no commitments to long-term operating support for minority-led nonprofits, which we believe is central to the empowerment of communities of color.
This report analyzes the grants made by the ten largest Florida-based foundations, and details the percent of their grants and grant dollars they gave to minority-led organizations. The report demonstrates that the top foundations gave an average of 5.48% of their grant dollars to African American-Latino and Asian-American-led nonprofit organizations. The top foundation in terms of minority giving was the John S. and James L. Knight Foundation, which gave 16.1% of its grants to minorities, closely followed by the Wallace H. Couler Foundation, which gave 14.3% of its grants to minorities. This study was commissioned by the Florida Minority Reinvestment Coalition.
This report card provides data for the best and the worst banks of 2008 in Small Business Administration (SBA) lending to minority-owned small businesses. The number of SBA loans has decreased by 30.3% nationally, including a 39.3% decline in California, due chiefly to the contraction in available credit across the economy. However, the SBA’s inability to maintain the competitiveness of its loan products compared to proprietary bank loans may have also contributed to the decline in SBA lending. Nonetheless, the SBA shows promise for improvement under the Obama Administration.
For the fourth consecutive year, Greenlining is issuing its major bank board of directors diversity study. One-third of our nation’s population and one-third of banks’ potential customers are minorities. With the exception of Citigroup, no major bank is close to reflecting the diversity of the American population.
The Greenlining Institute has been spearheading an effort to eliminate a 1973 anti‐redlining Federal Reserve regulation that has inadvertently been used to cover up discrimination in small business lending.
On July 17, 2008, Greenlining testified before the House Financial Services Committee urging that every financial institution with a billion dollars or more in assets be required to provide data by race, ethnicity and gender for all small business loans by 2011. This requirement would be similar to the requirements since 1989 relating to the reporting of home loans and the requirement Congress mandated for SBA‐guaranteed small business loans.