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						The New Feasibility of Black Philanthropy Nearly 30 years of NBUF charitable fund-raising and grant making in Black American communities have poured a solid foundation for a broader scale of operations. Two major developments have occurred to strengthen the feasibility of developing greater NBUF capacity. Black Americans have a higher concentration of wealth and surplus income, and NBUF’s viability and maturity have been established through its institutional experience and expertise. Black Americans now comprise the largest buying power group at $572.1 billion per year, representing two out of every three dollars spent by minorities, according to a recent report by the University of Georgia’s Selig Center for Economic Growth. Further, the report found that Black American households with annual incomes of more than $100,000 increased from 2.3 percent in 1990 to 2.7 percent in 1996. A recent White House Council of Economic Advisors (CEA) report found that 75 percent of whites make charitable contributions, compared to 52 percent of Black Americans. After taking into account that Black Americans generally have significantly lower incomes, however, the CEA found that Black Americans are more likely than whites to give to charities. Moreover, a younger generation of Black American millionaires, particularly in the fields of sports, new technology, and entertainment, are more focused than the older generation on wealth accumulation and what Fortune magazine called “The New Black Power”---ownership, money, and clout. This generation has little confidence in government to solve the problems of Black America and looks to the leverage of wealth instead. The growth in the number of young Black American entrepreneurs in the dot.com industry along with young entertainers and athletes has produced a newly emerging Black American business class with wealth and assets. Despite the long and rich tradition of charitable giving among Black Americans, the majority of these new assets are currently exhausted on consumer spending and personal investments. A restoration of philanthropic values must be introduced to a young Black American wealthy and affluent class, and systematic models and channels for philanthropic giving must be created for both traditional and new generations of Black American philanthropists. A new brand of giving must be made available with the old brand. What is essential at this point in time is an intensive public awareness campaign to inform Black Americans of the diverse and financially savvy mechanisms available for charitable and philanthropic giving. The campaign, A Trust for the Future, is a critical part of NBUF’s expansion strategy. Priority emphasis will be placed on raising black public awareness of the giving models available to redirect potential philanthropic resources to the formidable social and economic challenges in the Black American community. The core message of this campaign will not only appeal to the tradition of Black American giving, but also to the practical benefits that these new giving models offer to both donors and recipients. Re-Kindling the Tradition The tradition of Black American philanthropy has been long and sustaining since the days of free burial societies, schools, and black churches in the 1800s. NBUF’s years of experience with black employees in payroll deduction campaigns confirms the sustainability of this philanthropic values system and tradition. Indeed, in a 1999 Kellogg Foundation report, Mary-Frances Winters of The Winters Group, Inc., summarized her findings from interviews of 30 Black American donors and advisors as follows: _ Black Americans have a long history and rich tradition of giving, in part, because of their specific exclusion and separation from the majority culture _ There is an element of mistrust of majority institutions _ Giving follows customary traditions especially associated with the church _ Civil rights and other social rights groups have a reputation, accountability, and continuing attraction for many Black Americans _ There are growing interests in endowments, but continuing tension relative to immediate needs. However, the growing rate of affluence among Black Americans suggest significant potential for planned giving _ Black United Funds have tremendous reach and potential through workplace giving and responsive program support _ The power of celebrity offers important role models and messages from highly visible Black Americans to their community A New Tool Box To take advantage of these new opportunities, NBUF requires restructuring and an expanded mission, departing from operating as a national fund-raising federation to a network of Community Foundations. This strategic change is intended to accommodate more diverse ways of Black American charitable and philanthropic giving and to maximize the impact of such giving. NBUF will move beyond relying exclusively on payroll deductions and “pass-through grants” to the creation of the following mechanisms: Endowment Funds with a focus on fields of interests (e.g., environmental justice, children’s health, education, etc.) Donor-advised Funds (which require on-going, interactive contact and communications with the donor) Designated funds (i.e., for specific organizations) Unrestricted Funds (general contributions) Non-permanent Funds (pass-through grants) Individual Development Accounts (individual Savings Accounts matched by donor sources) Estate Planning (e.g., Wills and Bequests) Insurance Policies New Money The potential has never been richer for increased philanthropic giving among Black Americans. While the social and economic needs are deep and acute in a major sector of the Black American community, another sector of that community is enjoying unprecedented economic progress, leverage, and surplus income. Increasingly, large numbers of Black Americans are now able to pass on to their children and grandchildren property and other assets, the cornerstone of wealth accumulation in America. With the present twin factors of disposable income and wealth accumulation among many Black Americans, the feasibility of authentic black philanthropy is missing only the models for philanthropic giving, and the awareness that makes those models accessible. Providing both is a key strategic priority for NBUF. A Snapshot of Black America In the midst of the nation’s current economic prosperity, the “American Dream” continues to be elusive for many Black Americans. As the United States increases its technological advances and continues to expand its position in the global marketplace, the chasm between prosperity and poverty continues to widen for many Black Americans: In 1999, median family income for Black Americans was still only $31,778, compared to $51,244 for whites From 1989 to 1998, Black American middle class families logged an average of 4,278 hours of work per year---almost 500 more hours per year than white families In 1999, unemployment for Black Americans was 8 percent, compared to 3.7 percent for whites 26% of Black Americans live in poverty 32 % of Black American children live below the poverty level One out of every six Black American children have no health insurance Fewer than half (46%) of Black American households own their own homes, compared to the national average of 72% Black American men earn 71 cents for every dollar earned by their white counterparts Unemployment rates for Black American youths are three times higher than the national average 22% of teenage mothers are Black American Black American men are the group with the lowest life expectancy Black Americans die from heart disease, cancer and stroke at higher rates than any other racial group In 1998, Black Americans represented 45% of the new AIDS cases reported One in five Black Americans does not have health insurance 36% of Black Americans receive some type of public assistance 62% of Black households are headed by a single parent In 1996, Black American Americans were 13% of the U.S. population, but 30% of all convicted federal offenders Killer Contrasts These statistics are even more daunting when considered against the backdrop of mainstream America. For example, the death rate for Black American men suffering from cancer is fifty percent higher than the rate of their white male counterparts. Forty-eight percent of Black American children under the age of six live below 125 percent of the poverty level, compared to the nation’s average of 17 percent. The possibility of incarceration for Black American Americans is six times (16.2%) that of the mainstream population (2.5%). Viewing this snapshot of the State of Black America serves as a reminder of unmet challenges and the promise of opportunities facing the Black American community. Serious efforts to promote asset and wealth development for Black Americans must be inaugurated and sustained. As the disparities between mainstream and minority communities continue to increase, challenges increase for Black Americans, and opportunities to advance become limited. The Road Ahead Despite the successes of NBUF in supporting efforts to address these disparities, significant work lies ahead. Of primary importance is the need to support economic development, which is acknowledged as the key to sustainable improvements in the quality of life for any community. Because asset and wealth development are essential to the sustained revitalization of Black America, NBUF needs to strategically leverage its 30 years of unique experience to strengthen national and local capacities to develop more permanent resource vehicles in the Black American community. Thus, NBUF will continue to be an essential player in the effort to improve the quality of life for Black Americans and consequently the nation as a whole.NBUF Go to next page..... PURPOSE> The NBUF Niche PRINTABLE VERSION
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