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Philanthropy 2021 trends: Reparations, social justice - Crain's Detroit Business

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Reparations for the country's exploited populations are expected to increasingly become a topic of conversation for foundations this year.

At the same time, funding for social justice efforts and scrutiny of where philanthropic dollars are and are not flowing is expected to rise in 2021.

Those topics are among the new and escalating trends identified in "11 Trends for Philanthropy in 2021" released last week by the Dorothy Johnson Center for Philanthropy at Grand Valley State University in its fifth annual look at the trends.

Other 2021 trends noted by the Johnson Center include:

  • Blurring of boundaries between government and philanthropy, with foundations being asked to help fund things like personal protection equipment and COVID-19 testing
  • Blurring lines between business and philanthropy, with increased for-profit giving models aimed at social impact, such as the Ballmer Group, which is set up as a limited liability company
  • Continuation of disruptive forces such as increased wealth inequality, the growth of data collection and focus and renewed attention on racial inequities

With current events in the U.S., including the racial justice moment, increased recognition of health disparities, inclusive growth and a focus on civic engagement, "philanthropy is being asked to play a role in all of these different arenas right now (and) getting called out on how it can be a part of addressing these issues," said Johnson Center Executive Director Teri Behrens.

Reparations for the descendants of enslaved people are gaining renewed attention following the racial unrest that erupted in 2020, center researchers said.

Across the sector, family donors and institutions are "wrestling with the roots of philanthropy's collective inheritance," much of it accumulated through exploitative acts, they said. The imperative to right the deep wrongs of institutional histories is becoming more urgent and prompting more dialogue and action.

"Black people have not had the opportunity to grow wealth because of historical discrimination in housing, and disparities in wages and educational attainment … have continued those disparities," Behrens said.

"We've seen some foundations step up and at least talk about reparations with a deep understanding of the historic factors that contribute to wealth and economic disparities. ... How do we use the money that's been ill-gotten, as some would say, to help repair the damage?"

Nobody thinks that philanthropy can pay cash to right the past, Behrens said. But members of the Justice Funders, including the California Endowment and Marguerite Casey Foundation, are looking at how they accumulated wealth and power and starting to take steps to right wrongs through efforts such as making bolder investments in Black-led organizations.

"They are looking at how do you turn decisions about distributing that wealth over to those communities of people who have been historically exploited or marginalized," Behrens said.

There are also funding considerations for raising awareness and advocacy, education and leadership development, especially for grassroots organizations, Johnson Center researchers noted.

Conversations around reparations are aligned with the growth of social justice funding, another trend the Johnson Center identified for 2021.

The year 2020 saw large donors and funders implement a number of policy changes designed to "decolonize" their wealth and hand over more control to the people and organizations receiving that wealth, Johnson Center researchers noted.

The New York-based Ford Foundation, for example, in October committed to doubling its payouts to racial justice and civil rights groups, with new funding for those focused on creating systemic change through strategic litigation, policy advocacy and grassroots organizing.

"We've seen more organized philanthropy start supporting social justice movements," with organizations like Black Lives Matter beginning to attract funding from both well-established funders and from grass roots efforts through crowd-funding platforms, Behrens said.

And the Council of Michigan Foundations' new strategic plan makes racial equity a central part of its work, with newly formed working groups discussing the policy implications of disparities highlighted by COVID-19, she said.

As philanthropy moves more heavily into funding social justice efforts, the Johnson Center cautions, however, that foundations guard against "movement capture."

"There's some history that shows that once social movement leaders start getting funding from traditional foundations, it often shifts the focus of their work," Behrens said.

The caution, she said, is for funders and grant recipients alike: that funders not unduly influence the work of these groups, that group founders hold true to their mission and not be unduly influenced and that nonprofits with similar focus not get pulled from their core work in response to demands from funders.

While those conversations spread, there is also increasing scrutiny of where philanthropic dollars are flowing and where they are not, Behrens said, and increased calls from the media and groups formed to promote increased giving for more of those philanthropic dollars to be granted.

Concerns that foundations and individual donors are sitting on money rather than paying it out became elevated in 2020 with the health, economic and racial justice crises, Behrens said.

"There's more public scrutiny in the media and legislation that's been introduced to try to encourage and require foundations and individuals to give more. ... whether it's foundations (giving) more from their endowments, more from donor-advised funds or questioning why super-wealthy individuals aren't giving more," she said.

"And I think we're going to see that continue."

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