Black Communities Benefit From Trust-Based Philanthropy
The Foundation for Black Communities is leading the way when it comes to giving grant-seekers more power over the funding relationship. This sets Black communities up to succeed.
When Franklin Bouguep, executive director of BC-based non-profit Black Build Up, applied for a grant from the Foundation for Black Communities, their goal was to tackle vaccine hesitancy within the local Black community. “We felt there were some gaps and we knew we could help close those gaps if we had more funding,” Bouguep says. So when Foundation for Black Communities put out a call for non-profits to apply for funding related to COVID-19 outreach in the Black community, it was the perfect opportunity.
It soon became very apparent to Bouguep during the application process that there was a lot of flexibility and trust. Omar Omar, Foundation for Black Communities’ director of community investment, says trust is one of the pillars of the organization’s grantmaking process. “Those that are closest to whatever it is you’re trying to solve, those are the ones best positioned to make decisions in your grantmaking process,” Omar says. “And we trust them.”
Canadian foundations underfund Black communities
Trust appears to be otherwise absent when it comes to Canadian philanthropy and Black communities. In a 2021 report titled Unfunded, which examined the extent to which Canadian philanthropy has responded to the needs of the Black community, the report’s authors concluded, “Canadian philanthropy has largely been absent in supporting Black people in Canada.” The most telling statistic: For every $100 the top 15 community foundations disbursed during the 2017-2018 fiscal year, only $0.07 went to Black-led or Black-serving organizations. Nine of the 15 community foundations did not fund any Black-led organizations during that year, the report states.
For every $100 the top 15 community foundations disbursed during the 2017-2018 fiscal year, only $0.07 went to Black-led or Black-serving organizations.
Omar says traditional philanthropy means Black communities are constantly scrutinized, seen as “not worthy,” receive small pools of money, and are told they need to build their capacity. Meanwhile, he says, the people making these decisions have little insight into what the community needs, and are basing their decisions on what he describes as “racist factors.” “Factors that strongly feature anti-Black racism and historical narratives about Black communities being inadequate,” shares Omar.
Grant-seekers know themselves best, not funders
Foundation for Black Communities says it’s chosen instead to embrace a different approach to the funder/grantee relationship: trust-based philanthropy, or trust-based funding. According to Community Foundations of Canada, trust-based philanthropy “addresses the inherent power imbalances between funders, non-profits, and the communities they serve.” The redistribution of power — systemically, organizationally, and interpersonally — aims to create a healthier and more equitable non-profit ecosystem.
Trust-based philanthropy empowers those who are most impacted to be the drivers of their change and use resources where they deem most appropriate.
Traditionally, funders would direct how resources should be used, absent of the insight into what the community truly needed. This desire to control resources often also created multiple levels of reporting and authorizations — a deterrent to potential grantees. Trust-based philanthropy however allows for more direct access to multi-year unrestricted funding, and a significant reduction in reporting. It also, more importantly, empowers those who are most impacted to be the drivers of their change and use resources where they deem most appropriate.
In this structure, funders must simply trust that recipient communities are fully capable of acting in their own best interest. Open communication and transparency, therefore, bridge the relationship between funders, non-profit organizations, and the communities that they serve. “Our lens is not one where Black communities need to be built up in order to ask for the money appropriately. Our lens is one that says Black communities have been exceptionally able, exceptionally innovative, exceptionally resilient in the face of intentional barriers,” Omar says.
Checks and balances for trust-based philanthropy
Still, even in trust-based philanthropy, Omar says there is a need to critique the capitalist system. “Even when Black folks like Foundation for Black Communities are in positions of power, it’s important to challenge the power, the risk, and the social justice endemic in those communities. It’s endemic for Black communities to hold us accountable,” he says.
Trish Mandewo, the founder of Synergy Executive & Boards Consulting Group, says accountability and trust go hand-in-hand. Her company helped Foundation for Black Communities recruit new board members. While she is in favour of trust-based philanthropy, she also says there needs to be a focus on ensuring a solid framework exists: determining whether there is an organizational structure in place, ensuring that roles and responsibilities have been clearly defined, identifying markers of clear communication channels within the organization, and focusing on processes for onboarding new employees and board members, to name a few.
Even when Black folks are in positions of power, it’s important to challenge the power, the risk, and the social justice endemic in those communities. It’s endemic for Black communities to hold us accountable,” Omar says.
For Black philanthropists in the UK, that kind of framework is part of what they are looking for. In a 2022 report titled GiveBLACK which focuses on the vital role Black philanthropy plays within the UK’s Black community, trust was found to be a key factor in giving decisions. Black philanthropists are keen to support Black-led organizations, but they want them to “demonstrate strong governance and provide clear messaging about their purpose and outcomes.” More transparency about how they operate and learning how to clearly and efficiently articulate impact is one of the report’s recommendations.
“I get happy when I hear from Black organizations that are coming to us and saying, you know what, yes we got the money and we started but we missed a step,” Mandewo says. “And then they’re dialing down a bit so that they can go back and put that framework in place. And that’s what needs to be done.”
Back in Vancouver, Bouguep says their outreach was very successful. And, he says, a detailed report was provided to Foundation for Black Communities, which included social media metrics, attendance, and engagement. “We submitted a more comprehensive one because the grants we tend to do, the requirements are usually quite heavy,” Bouguep says. “So, we wanted to give a report that was more comprehensive.” While the work has begun, there still remains a chasm to be bridged in serving and building Black communities through philanthropy. With a rise in structured grassroots movements that address social inequity, trust-based philanthropy may be the fuel that propels this work forward.
Written by Nadia Tchoumi
Art by Odera Igbokwe