So, we’re going there.
First, there's no denying the good that private foundations do in the world. They are responsible for giving away more than $117B in the United States in 2026, and their contributions often help organizations cultivate good in their communities. To give away these funds, foundations need systems to help ensure alignment, sustainability, and capacity so funders can invest in work that matters to them and organizations can receive support to provide services they are uniquely positioned to provide.
But like many other systems in the United States, these checkpoints reinforce harmful inequities that are deeply embedded in the fabric of American society, specifically racism. Common practices in private foundations can make creating relationships and getting funded challenging for Black-led and Black-serving organizations. Once awarded, the standard for demonstrating the impact of their valuable work compounds these difficulties.
What do I mean by this? Here are some recent examples that come directly from our clients:
Suggesting major program changes without any content area expertise, lived experience or community connection, and no sense of the necessary capacity to accomplish the suggestions.
Penalizing programs for not having a robust evaluation system without investing in said evaluation system.
Demanding “scale” and replication of programs as a measure of success instead of valuing deeper investment in the communities they serve or hearing directly from those communities about their needs.
Continuously investing in the same select group of nonprofits instead of funding community-based or community-centered organizations.
Reluctance to take difficult stands to defend the organizations and causes they support unless it’s free of danger or consequences for them. (see here and here).
How do these dynamics help sustain or create racism in philanthropy? These actions mean that only organizations with existing access and connection secure the funds needed to do their work. This leaves organizations who serve vulnerable communities on the periphery of the process, trying to find the best gatekeeper to usher them in. And the opacity and exclusivity inherent to some practices in private foundations replicates the very systems they claim to seek to dismantle.
Philanthropy may lack awareness of the degree to which they promote this dynamic. One study showed that while over 90% of foundation leaders believe they understand the challenges their grantees face, only about half of nonprofit leaders agree. And while many private foundations seek feedback from grantees via surveys, the power dynamics make being truly honest challenging. And if you provide honest feedback, who is to know how that feedback may be used to make lasting, important change.
So what do nonprofits do during these times? Draw on our legacy of abundance. From the Montgomery Bus Boycott to Ferguson, we’ve seen the impact of community-based efforts to shift national consciousness and/or to impact our communities:
An Abundance of Experience Solving Community Challenges: Our communities have a deep tradition of fundraising, organizing, and getting the work done. From mutual aid to giving circles, we have financed and propelled our movements forward.
An Abundance of Generosity and Creativity: Research tells us that despite economic disparities, Black, Latinx and Asian-American families give frequently and are more likely to have family traditions involving giving.
An Abundance of Collective Action: We know that sometimes we are keenly aware of the needs of our communities before traditional philanthropy catches on. When that happens, amplify the voices of leaders to help draw resources to those organizations doing important work now or those who are well-positioned to activate. Identify ambassadors and champions to help amplify your mission, from notable figures to people with strong reputations on the ground.
Does this mean organizations should rule out relationships with philanthropy? Absolutely not. Good work can be done when the relationship is rooted in your community’s needs and your mission, and alignment with a foundation’s priorities and interests. When you find mutually beneficial relationships in philanthropy, build on those. According to the Stanford Social Innovation Review, a rising number of foundation leaders advocate for a collaborative, trust based approach to grantmaking that benefits those that we care about most - communities.