The Concept
“Investing in Racial Equity Through Charitable Grants and Services”
By Lawyers’ Committee for Civil Rights Under Law
In the wake of the Fearless Fund decision, "grantmakers, nonprofits, and others who seek to advance racial equity for communities of color are wondering if they need to adjust their approach to equity-focused grants and programs in this moment to minimize legal risk. At the same time, many charitable organizations are looking for ways to double down on maximizing impact for affected communities in an increasingly hostile landscape."
Key Resources
Investing in Racial Equity Through Charitable Grants and Services by Lawyers’ Committee for Civil Rights Under Law publication
Key Points
“Trust-based Philanthropy May Lower Section 1981 Liability Risk”
"The group that sued brought their claim under our nation's oldest civil rights law, section 1981 of the Civil Rights Act of 1866. That law, which was passed after the Civil War, provides that all people have the same right to enter into and enforce contracts 'as is enjoyed by white citizens.'"
"The Fearless Fund decision does not mean an end to racially-informed grantmaking or nonprofit work. To the contrary, it is still lawful for organizations to have missions designed to advance racial equity. It is also fully lawful to explicitly discuss racism and discrimination. Specifically, charitable organizations can continue to discuss the effects of discrimination and justification for their racial equity programs on their organization websites and public-facing materials."
Additional Examples of Lower-Risk Measures to Advance Racial Equity Via Grants & Contracts:
"Whether or not a contract is formed, there are additional ways organizations can advance their racial equity goals through measures that are not race exclusive and treat applicants of all races and ethnicities the same. For example, organizations can:
consider applicants' demonstrated commitment to advocacy on behalf of Black communities or communities of color
consider applicants' lived experiences with race, racism, and discrimination
voluntarily solicit demographic data from applicants and beneficiaries for analytical purposes to better measure program impacts and results
develop aspirational goals if certain groups are underrepresented in your application process
use targeted recruitment and advertising to increase racial and ethnic demographic representation of underrepresented groups in applicant pools, including partnering with Historically Black Colleges and Universities, Hispanic-Serving Institutions, and other Black, Indigenous, and People of Color-serving organizations."
Note: this is not an exhaustive list.
Further Reading
From the Sources
Investing in Racial Equity Through Charitable Grants and Services from the Lawyers’ Committee for Civil Rights Under Law
The Lawyers' Committee for Civil Rights Under Law is a nonpartisan, nonprofit organization formed in 1963 at the request of President John F. Kennedy to mobilize the private bar to provide legal services to address racial discrimination. Their guide "Investing in Racial Equity" provides practical legal guidance for philanthropic organizations, funders, and intermediaries seeking to advance racial equity within the current legal landscape.
How We Ended Up Here
