A $200 million endowment focused on Black Americans is taking shape

San Francisco Chronicle​

a day ago

Started in 2020 as a five-year initiative inspired by the racial justice outcry following the police murder of George Floyd, the California Black Freedom Fund plans to expand to a $200 million endowment. The move is both rare in the world of philanthropy and politically bold, given the Trump administration's efforts to eliminate race-based grant making.
Originally a designated fund of the Silicon Valley Community Foundation, the fund spun off on July 1, renaming itself the Black Freedom Fund, to indicate its new national scope. Over the past five years, it has drawn more than $97 million in donations. Of that, it has directed $45 million to 206 nonprofits in California, largely working to increase the sway of nonprofits that serve Black people, with a portion of the remainder being reserved to start the endowment.
Marc Philpart, the fund's executive director, said the endowment will let the fund make grants of $10 million a year without cutting into its asset base, assuming historical rates of return on investments.
By establishing a durable institution with a sizable reservoir of cash, the fund can serve as a lasting beacon to smaller organizations serving Black communities in California, Philpart said.
'When a crisis occurs in the Black community, philanthropy parachutes in, there's a wave of support, and then as soon as the news cameras turn away, the support recedes,' he said. 'We need enduring institutions that are led by and committed to the Black community in ways that have a lasting impact.'
DEI targeted
Philpart's fundraising for the endowment comes as the Trump administration has characterized diversity, equity, and inclusion programs as illegal and has called for investigations of large foundations that support diversity programs.
Under Philpart's leadership, the California Black Freedom Fund started the Legal Education, Advocacy, and Defense for Racial Justice Initiative, which provides pro bono legal consulting and training for nonprofits. The program operates on the premise that there isn't anything illegal about racial justice funding.
But the 2023 Supreme Court ruling against considering race in college admissions, in a pair of cases brought by Students for Fair Admissions against Harvard University and the University of North Carolina, was viewed by some as an indication that private philanthropies could not legally engage in race-based grant making — and the issue is far from settled.
While Philpart's fundraising pitch might resonate with some donors, others are sure to be nervous, given the scrutiny placed on race-based grant making by the White House, said Dan Morenoff, executive director of the American Civil Rights Project, a litigation and advocacy nonprofit that has challenged affirmative action programs.
The White House has directed the Department of Justice to root out instances of race-based grantmaking, which it considers discriminatory.
'You don't want to be on their radar because they are fervently looking for people to make examples of at this point,' Morenoff said.
While some corporations and philanthropies, including the Chan Zuckerberg Initiative, an early supporter of the California Black Freedom Fund, have retreated from supporting racial justice, Philpart is counting on securing support from donors who want to stay with the cause even as the issue is argued in various court cases stemming from Trump's anti-DEI executive orders.
The attacks from the administration, Philpart said, have been a 'clarifying moment' for many donors and have generated interest in the fund.
'People have rallied to us and really doubled down on their commitments to support Black freedom and Black power,' he said. 'That is the most telling thing coming out of this moment — that there is a critical mass of leaders throughout the country who care very deeply about the community.'
70 financial supporters
One grantmaker that has doubled down is the California Wellness Foundation. The foundation made an initial grant of $500,000 when the fund was first launched, then made a $200,000 commitment to a separate fund created by the California Black Freedom Fund in response to the January Los Angeles fires, and recently added $500,000 to support the spin-off.
Richard Tate, president of the California Wellness Fund, said the new fund is 'needed now more than ever' because of attempts by the administration to roll back equity efforts.
'The fact that we are talking about a Black Freedom Fund is an acknowledgment that not everyone has equal standing in the culture,' he said. 'Whatever headwinds that may exist because of this political moment, now is the time for us to continue to be explicit about our intentions of supporting a community.'
Philanthropy needs to act quickly by unleashing more money in grants to support areas like litigation, public advocacy, and the replacement of lost federal funds, said Glenn Harris, president of Race Forward, a nonprofit racial justice advocacy group. But, he said, lasting institutions that can respond to future challenges are also needed.
'There's a balancing act,' Harris said. 'It's really clear that struggles for liberation and justice are going to be with us for a minute.'
Among the two dozen grant makers that chipped in to start the fund are the Akonadi, Conrad Hilton and San Francisco foundations as well as the Emerson Collective, Crankstart, the Evelyn and Walter Haas Jr. Fund and the Silicon Valley Community Foundation. The total of institutional funders to the effort since 2020 now exceeds 70.
Why endowments
Among the groups the fund has supported are the East Bay Permanent Real Estate Cooperative, a community-owned cooperative that 'removes land and housing from the speculative market and places it into permanent community stewardship,' according to the fund.
A late 2023 survey of nearly 300 foundations conducted by the Center for Effective Philanthropy found that more than two thirds of grantmakers did not offer endowment grants. Half of those that did so made them to arts organizations and museums.
Nonprofits led by Black people receive endowment grants even more rarely, according to a 2022 analysis of social change organizations by the Bridgespan Group, a philanthropy consultancy, which found that nonprofits led by Black people had endowments that were only a fourth as big as those led by white people.
Since then, some grant makers have stepped forward to support endowments at organizations serving members of Black communities, said Darren Isom, a partner at Bridgespan. For instance, in 2022 the Robert Wood Johnson Foundation made grants of $5 million each to three racial justice organizations led by people of color: UnidosUS, the NAACP, and Faith in Action.
'Endowments are transfer of power from philanthropic organizations to the organizations that are closest to the work,' he said. 'From an impact perspective, the work is more high impact, more beneficial, and more durable if it's owned by and led by those that are the closest to issues and closest to the communities.'
Philpart is confident that despite the blow-back against diversity and racial justice, the fund can raise enough money to meet its goal.
'We're drawing people out who want to prove we are greater than divisiveness, we are greater than bigotry, and we are a greater than racism,' he said. 'We are better than all the things that pull us apart and don't fundamentally improve anyone's well-being.'