Initiated in 2020, the California Black Freedom Fund emerged as a five-year project motivated by widespread demands for racial justice following the police killing of George Floyd. The fund, which aims to establish a $200 million endowment, is notable both for its ambitious nature within the philanthropic sector and for its boldness amidst the Trump administration's attempts to eliminate race-based grantmaking.
Initially a designated fund under the Silicon Valley Community Foundation, the initiative became independent on July 1, rebranding as the Black Freedom Fund to reflect its enlarged national ambition. Throughout its first five years, the fund has garnered over $97 million in donations, with $45 million allocated to assist 206 nonprofits primarily in California. These organizations focus on amplifying the influence of nonprofits serving Black communities, with a portion of funds earmarked for the future endowment.
Executive Director Marc Philpart stated that the endowment is designed to facilitate annual grants of $10 million without depleting the fund's principal, based on historical investment return rates. By creating a sustainable financial institution, the fund aims to provide long-lasting support to smaller organizations dedicated to serving Black communities in California.
Philpart emphasized the necessity of enduring institutions that persist in their support during crises. He pointed out that philanthropy often steps in temporarily during crises in Black communities, but consistent, dedicated support is essential for lasting community impact.
The fund's fundraising efforts coincide with the Trump administration's characterization of diversity, equity, and inclusion (DEI) initiatives as illegal and its calls for investigations of major foundations that promote these programs. Under Philpart's guidance, the California Black Freedom Fund initiated the Legal Education, Advocacy, and Defense for Racial Justice Initiative, offering pro bono legal advice and training to nonprofits to counter the notion that racial justice funding is unlawful.
However, the 2023 Supreme Court's ruling against race-based admissions in college acceptance cases could complicate the landscape for private philanthropy involved in race-based grantmaking. This legal uncertainty has led some donors to hesitate, as highlighted by Dan Morenoff, executive director of the American Civil Rights Project, who remarked on the heightened scrutiny from the White House against race-related funding.
Despite the challenges, Philpart looks to engage supporters who remain committed to racial justice, seeing the administration's attacks as a galvanizing moment for donors. He noted that many have reinforced their commitments to advancing Black freedom and empowerment, indicating a significant response to the current political climate.
One such supporter is the California Wellness Foundation, which originally contributed $500,000 and subsequently pledged additional funds to assist the burgeoning initiative. President Richard Tate emphasized the urgency of the fund's mission amidst ongoing efforts to undermine equity initiatives, stating that acknowledging disparities in societal standing is crucial in these discussions.
Glenn Harris, president of Race Forward, echoed the need for swift philanthropic action to provide grants for litigation, public advocacy, and compensating for lost federal funding, while also underscoring the importance of establishing resilient institutions to face future challenges.
The initial cohort of grantmakers included organizations such as the Akonadi, Conrad Hilton, and San Francisco foundations, with total institutional contributors now exceeding 70. The Black Freedom Fund has also supported initiatives like the East Bay Permanent Real Estate Cooperative, which aims to remove land and housing from speculative markets.
Interestingly, a late 2023 survey by the Center for Effective Philanthropy revealed that more than two-thirds of foundations do not offer endowment grants, with those that do predominantly supporting arts organizations. Nonprofits led by Black individuals notably receive endowment grants even less frequently. However, some grantmakers have recently shifted towards supporting endowments for organizations representing Black communities, as exemplified by a $5 million grant each from the Robert Wood Johnson Foundation to three racial justice organizations in 2022.
According to Darren Isom, a partner at Bridgespan, endowments signify a transfer of power from philanthropic entities to the community-controlled organizations that are most familiar with the issues at hand. Philpart expressed optimism about the fund’s capacity to meet its financial goals despite the ongoing pushback against diversity and racial justice efforts. He articulated a vision of unity that transcends divisive narratives, reaffirming a collective commitment to enhancing the well-being of communities.
