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Boston Globe
23-05-2025
- Business
- Boston Globe
After George Floyd's murder, Boston groups pledged $1 billion toward equity causes. Where did it go?
Related : Advertisement But five years later, it's difficult to discern what all that money bought. Anecdotally, those in Greater Boston on both the giving and receiving end agree the energy for social change has waned. People moved on — and took their money with them. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up 'That's part of the problem that we see in philanthropy over time,' said Shanique Rodriguez, executive director of the Massachusetts Voter Table, a nonprofit coalition of more than 40 advocacy groups. 'It's whatever is popular, whatever is urgent, whatever fire is happening right now that we see philanthropy put its energy behind.' A mural was painted at the George Floyd memorial outside Cup Foods in Minneapolis on June 25, 2020. Leila Navidi/Associated Press In just four months, the Trump administration has rattled the landscape for such initiatives. The White House has targeted diversity, equity, and inclusion — and anyone who supports those initiatives. The chilling effect has hit donors and nonprofits alike, with some rescinding dollars and others scrubbing their programs of DEI-related language, while a select few approach the threat head-on. Advertisement Some nonprofit leaders worry philanthropic support for equity is dwindling at a crucial moment: The Trump administration is cutting all manner of federal funds, groups committed to racial justice face retaliation, and Republicans are floating laws that could strip ' The apparent retreat is a turnaround from the proclamations made in the wake of Floyd's murder, when powerful Boston-based brands, foundations, and universities promised to do better, and funded different causes. The Globe reviewed 25 pledges from roughly 20 local institutions made in the year after Floyd's death. Of those, 60 percent were grants. A select few promised pro bono services or workplace initiatives in lieu of money. Roughly one in 10 were made as investments — meaning the result also ended up benefiting the donor's bottom line. Bain Capital promised $100 million over a decade to nonprofits. The University of Massachusetts Boston launched the All but two of some 20 organizations contacted by the Globe said they had fulfilled or were in the process of fulfilling their promises. Details on how those impacted the Black community, or even which programs received their money, varied. Advertisement One organization shared its receipts. Most provided itemized lists of grant amounts. But web pages announcing some of those promises for racial justice are now unavailable. A Bain Capital spokesperson said the company surpassed its 10-year, $100 million commitment ahead of schedule, but declined to share by how much. Among its recipients were the NAACP, Year Up, and the GreenLight Fund. A spokesperson for the Local Initiatives Support Corporation, or LISC, confirmed Wayfair's investment, but said it couldn't provide details out of 'fiduciary responsibility' to investors. The tax forms that nonprofits file with the IRS provide some insights into how some are spending and receiving funds. For private entities such as banks, firms, and agencies, there's no law mandating they make their numbers public. Instead, information is largely available from press releases, annual reports, and some tax forms. Related : With the Trump administration stripping funds from groups that don't follow the White House's current ideology, advocates argue, the need for charitable giving to grass-roots organizations is more necessary. A Advertisement Advocates worry the drop in federal dollars creates a feedback loop. More people will flock to nonprofits for help, and more nonprofits will turn to philanthropists for grants. But when the philanthropic pie runs out, where will the community go? Stacey Borden, executive director of New Beginnings Reentry Services (left), and Lisa Goldblatt Grace, co-executive director of My Life, My Choice spoke during an open house organized by the New Commonwealth Fund, an organization focused on disrupting inequities in philanthropy last year. Josh Reynolds for The Boston Globe 'There's not really an answer,' said Stacey Borden, executive director of Dorchester-based New Beginnings Reentry Services. 'I just have to keep the faith.' Philanthropies are responding by offering more of their donations as unrestricted funds, providing more grant money upfront, and offering consultant support. As Bob Rivers, executive chair of Eastern Bank, put it, 'Many foundations are shifting our mindset away from transformation to preservation.' Donors aren't starting from scratch. Massachusetts has a sizable giving economy, with at least $4.7 billion in donations reported in 2017, according to the most recently available reliable data. In some local circles, funders are preparing to compensate for the gaps created by cuts to federal funding. Some organizations focused on racial equity say they have seen support grow in some cases. Lee Pelton, chief executive of the Boston Foundation, said his organization is on track for another record year in donations. 'It's hard to sustain the momentum of anything from five years ago,' Pelton said. But 'that sense of urgency has been renewed since the federal regime has taken office.' Marquis Victor, executive director of Elevated Thought, a nonprofit in Lawrence that provides creative outlets to artists of color, said the organization has had 'rapid growth' over the past few years. It's building out a new space and several programs have reached their two-, three-, and four-year marks without fear of discontinuing. Advertisement The main headquarters for Elevated Thought, an arts nonprofit, featuring a mural by Boston-based artist SOEMS, in Lawrence on May 21. Danielle Parhizkaran/Globe Staff Elevated Thought doesn't receive federal funds, but Victor anticipates Trump's attacks on DEI might indirectly affect the nonprofit's operations. Funders might avoid supporting its work to protect themselves from attacks. Still, Victor is steadfast. 'It's a natural occurrence to tweak your mission to make it more accessible, but not at the sake of changing who you are, the work that you do.' Even if the collective energy toward racial justice has dimmed some, some changes to philanthropy have survived, several leaders told the Globe. Some foundations now give nonprofits more money at the front end of a multiyear commitment, or immediate grants to cover overhead. There are fewer applications and progress reports to fill out. And more funders are adapting their systems to meet the ever-changing needs of the organizations they support. The type of social causes it supports to better reflect the range of groups addressing equity. Makeeba McCreary, CEO of the New Commonwealth Fund, said philanthropy, especially from corporations, is still struggling to adjust its infrastructure to better address racial equity. Craig F. Walker/Globe Staff/File 2021 Makeeba McCreary, its CEO, said the changes were driven by its deep relationships. To date, the fund has raised over $40 million and provided roughly $17 million in grants. Nonprofits will say, ''We feel safe, we feel seen, we know that you're not going away,'' McCreary said. For the New Commonwealth Fund, justice 'is not the flavor of the week.' Nevertheless, McCreary said donors, especially corporations, are still struggling to adjust their methods to better address racial equity. Too few are diversifying their boards, restructuring staff and resources to meet nonprofit needs, or pledging multiyear commitments and lump sums together. Some conversations about racial justice are now whispered behind closed doors. Advertisement It's similar to the bystander effect, McCreary said. 'Unless you tell folks who are doing the harm to stop, you're part of the problem.' Vince Dixon, formerly of the Globe staff, contributed to this report. Tiana Woodard can be reached at
Boston Globe
28-04-2025
- Business
- Boston Globe
Amid debate over Mass. ‘millionaires tax,' report finds the number of millionaires here has surged
The new income surtax, which adds to the existing 5 percent income tax rate, generated $2.46 billion in its first full year, and Beacon Hill Democrats are spending that money on investments in education and transportation. Get Starting Point A guide through the most important stories of the morning, delivered Monday through Friday. Enter Email Sign Up The report measures accumulated wealth rather than annual income, but surtax supporters say they're certain that some share of the 'ultra-wealthy' captured in the report are paying the income surtax. Advertisement 'This is further evidence that multi-millionaires are not fleeing the state in response to the new tax – they are staying here, paying more in taxes, and enjoying the stronger transportation and public education systems that Fair Share dollars are funding,' said Shanique Rodriguez, executive director of the Massachusetts Voter Table and a member of the Raise Up Massachusetts Steering Committee. There's bipartisan agreement in Massachusetts that high costs of living here, including housing and energy prices, are causing some residents to pick up and move to lower-cost states. While addressing the underlying causes of that outmigration and the state's 'affordability crisis' has become an ongoing public policy challenge, the report looks exclusively at the number of higher-wealth households to draw conclusions about tax impacts. Advertisement Raise Up says the 2,642 ultra-wealthy individuals delineated in the report represent 0.04% of the Massachusetts population, and collectively hold $500.4 billion in total wealth. The report also modeled a hypothetical 'wealth tax' on this group with at least $50 million in total wealth. The researchers concluded that Massachusetts has the potential to raise $3.7 billion with a 1 percent tax, $7.4 billion with a 2 percent tax and $11 billion with a 3% tax. Raise Up spokesman Andrew Farnitano said the group is not pursing a wealth tax 'at the moment' and instead remains focused on its push for the Legislature to approve a The number of Massachusetts taxpayers with annual income above $1 million was about 27,000 in 2022, the last year when data is available from the IRS, according to Raise Up. Amid concerns that the so-called "millionaire's tax" would prompt wealthy people to leave Massachusetts, supporters Monday released a study showing that the ranks of wealthy and ultra-wealthy people here have grown significantly over the last two years. David L. Ryan/Globe Staff The report found that the number of 'millionaires by net worth' in Massachusetts, a category that includes the value of homes, retirement and other assets, rose by 38.6% between 2022 and 2024, from 441,610 individuals to 612,109. Their collective wealth increased from $1.6 trillion to $2.2 trillion, or 37.3 percent. 'Research has demonstrated that million-dollar earners and high net worth individuals tend to exhibit lower rates of migration compared to the general public,' said lead report author Omar Ocampo, researcher at the Institute for Policy Studies. 'This is not a surprise. Their family, business and social network deeply root them to amenity rich locales where they enjoy a high quality of life. A modest increase on their incomes does not compel the overwhelming majority of millionaires to flee to other states.' Advertisement President Donald Trump stirred debate over tax policy recently when he In a recent Boston Globe 'inbox' item, Jonathan Cohn, policy director of Progressive Mass, said surtax-funded investments in education and transportation will spark housing production and that policies like free school meals, bus rides and community college 'are making the state more affordable for middle-class families.' 'Massachusetts is experiencing outmigration, but it's not multimillionaires who are fleeing slightly higher taxes. It's young workers fleeing our high cost of living,' Cohn wrote. 'As a millennial, I've become accustomed to seeing friends move out of Boston, then out of the state entirely, due to high cost of living. If you want to buy a home for a decent price or find affordable child care, good luck. We are losing people because affording the high quality of life we tout is getting father and farther out of reach.'
