Asset Funders Network introduces the Equity Amplifier for Economic Security (EA), a monthly spotlight series highlighting organizations or nonprofits focused on building economic security/asset building in communities of color.
Everything is bigger in Texas. Or so goes the saying. For the most part, this rings true, particularly in the world of philanthropy. But we also know that there is a significant funding gap that impacts smaller nonprofit organizations, and even more so for those led by people of color. We know that smaller organizations are less likely to have the access, resources, or capacity to obtain larger grants. Today, the nonprofit sector as a whole is facing the added challenge of foundations becoming hesitant to provide financial support due to perceived legal threats following the Supreme Court affirmative ruling, which fuels notions that racial justice work is discriminatory or illegal.
Instead of reinforcing practices that place substantial barriers on our nonprofit partners, our North Texas AFN steering committee decided to double down on our commitment to equitable grantmaking. This amazing group of funders took an idea that was practiced by one of our peers with their grantees and decided to pilot the Equity in Asset Building Relay Grant. This initiative provided funders the opportunity to share power. It put the keys into the hands of those who are closer to the issues, communities, and individuals we were seeking to serve. It also provided funders the opportunity to get to know new agencies offering services that support economic mobility and asset building, and most importantly, it provided us with the opportunity to learn how we can be better grantmakers.
How It Worked: NTX AFN identified a set of criteria and then launched the program by selecting two organizations, one from Dallas County and the other from Tarrant County, through an online lottery from a pool of eligible nonprofits. The race continued with four more rounds. In each subsequent round, two nonprofits nominated two other asset-building counterparts, thereby fostering a chain of recognition that culminated in the identification of ten organizations and their fearless leaders.
We awarded $10,000 in general operating grants to ten nonprofits, primarily led by individuals of color who spearhead economic mobility and asset-building efforts. Their focus areas include essential areas like financial health, affordable housing, workforce support, free tax preparation, savings initiatives, and facilitating access to credit for small businesses.
We learned a lot from this process and even more from the grantees. Some highlights are:
- Regional Nonprofit Capacity Varies – Because of our focus on asset building organizations, grantees were challenged to identify eligible organizations to nominate. Several asked to utilize our pre-populated list of eligible nonprofits. This has identified a gap in grassroots asset-building service providers, particularly in Tarrant County, which we hope to explore as we continue to engage with this initial cohort of 10 agencies.
- Smaller Nonprofits Want to be Seen and Heard – At the end of the relay we hosted a convening of funders and the relay grantees. The meeting was designed so that we, as funders, could listen and learn from the grantees. Grant recipients expressed appreciation for funding and “being seen” – many felt that the Relay Grants validated their work since a majority had never received funding from this particular group of funders before.
- Trust is Rooted in Commitment – Recipients expressed a need for larger, unrestricted grants ($25K+), capacity building and mentorship to help them grow their organization and as a nonprofit leader.
This was a great practice for us as funders and we learned that there is much more work to be done and modeled on trust-based philanthropy. Not all funders in the Network participated, nor are those who contributed at the same stage of readiness when it comes to fully embracing all the best practices off trust-based philanthropy. After listening to feedback from our nonprofit partners, we have decided to continue the Relay Grants program with a focus on capacity building and training support for the ten grantees.
For me, the most important action is to take one. The relay grant is just one of several ways we hope to start practicing trust in our grantmaking. There is no one-size fits all and the work will look different from one funder to the next. There is one key factor that made this a success: trust. Trust in each other as funders and trusting that nonprofits know their needs and their community’s needs best and honoring everyone’s expertise because we all have something valuable to contribute. I hope this will inspire you to think creatively about how you build trust with your grantees and how you start the process of sharing power and resources more broadly and more equitably.
About the Equity Amplifier
The EA serves as a space where philanthropy can engage with communities of color and examine how funders are addressing concerns in a manner that is intersectional and inclusive. Each month, AFN members will have the opportunity to access organizations and nonprofits in communities of color that are focused on economic security and asset building, including an informational brochure and a brief interactive virtual video presentation.
As a benefit of AFN membership, funders may nominate local nonprofits focused on building economic security/asset building in communities of color to highlight as part of the EA series. AFN members will also receive the opportunity to participate in a brief interactive virtual video presentation that will be shared with national AFN membership, allowing your organization to showcase innovative models and best practices to help build a more secure future for diverse communities.
How can funders get involved?
For more information about the North Texas Relay Grant, contact Amanda Arizola, North Texas Program Officer, at amanda@assetfunders.org.
For more information or to nominate an organization or nonprofit led by people of color for the AFN EA, visit our website or contact AFN at info@assetfunders.org.
