Recent events in communities across America are reminders that systemic racial inequity and injustice in our society continues to inflict damage and hinder the quality of life for Black people in this country.
Our responsibility as your Community Foundation is to strive for positive change in our communities, especially as it relates to transforming systems that have been broken for too long. Part of that responsibility is our duty to the professional advisors we work with – attorneys, accountants, and financial advisors – to help serve their colleagues and clients. To that end, we have a set of tools and actions that professional advisors can use to join us in supporting social justice and equality in the communities we love.
Introduce Donor-advised Funds
as Anti-racism Impact Investing Tools
Donor-advised funds are sometimes described as “charitable checking accounts.” This explanation is far too limiting, especially now. Yes, donor-advised funds established at the Community Foundation are convenient and tax-savvy. But the benefits to society and community impact run far deeper.
Embedded at the intersection of donors, nonprofits, civic leaders, and citizens, community foundations serve on the front lines of impact investing, including offering options for impact investing through donor-advised funds. Our team understands where capital can be deployed to result in the swiftest and deepest positive change for Black people in our community. If you aren’t yet familiar with the growing importance of impact investing, it’s a good time to get up to speed.
Our team can work with you and your clients to establish donor-advised funds with a wide range of asset levels. Whether your clients are venture capitalist investors or small business owners, we would be honored to assist you in supporting this critically important cause.
Show examples
Your clients will undoubtedly benefit from seeing examples of anti-racism philanthropy, especially if they are business owners, private investors, or corporate executives:
- We’ve compiled a list of Arkansas-based organizations working to promote justice and equity.
- The business case for battling racial injustice is gaining strength
Expand investment options
The $69 trillion asset management industry is riddled with a lack of diversity. Last year, a study published by the Knight Foundation revealed disparities:
- Less than 4% of publicly-traded funds are run by people of color.
- Firms owned by women and minorities combined manage just 1.3% of assets.
The study included a small glimmer of hope: Representation of diverse-owned firms among hedge funds, real estate, and private equity has shown modest gains in recent years.
Professionals who are mindful and proactive about combating racial injustice will be naturally curious to seek out investment funds where decision-makers and top executives are Black.
Professionals who are mindful and proactive about combating racial injustice will be naturally curious to seek out investment funds where decision-makers and top executives are Black.
As always, please contact the team at the Community Foundation to learn more about what you can do to join us in our important community leadership work to bring an end to the racial bias that is embedded in our daily lives. Your philanthropic commitments and those of your clients can, and will, make a difference.
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