Now more than ever, foundations, philanthropic organizations and banks are talking about economic, racial and social justice. Considering that inequity is baked into our institutional practices and norms, it’s a welcome shift in the conversation.
However, to borrow the words of Rodney Foxwell and Antony Bugg-Levine, we need to stop making excuses about why it’s hard to fund Black-led organizations. Instead, we need to invest in them more. In the finance world, that means institutional philanthropy needs to fund Black-led Community Development Financial Institutions (CDFIs)—and not just the few large ones that everyone knows.
Those familiar with CDFIs know they’re economic shock absorbers that are crucial to the health of many communities. CDFIs have consistently operated on the front lines of economic upheavals like the aftermath of September 11, the 2008 financial crisis and natural disasters, providing essential support to residents and small businesses that often have nowhere else to turn. CDFIs are America’s financial first responders.
Yet, as in our communities, disparities exist across the CDFI landscape, and unsurprisingly, the COVID-19 pandemic has laid them bare.