Racial equity is an essential element of philanthropy. In the fourth edition of Racial Equity in Lean Foundations, Exponent Philanthropy offers an in depth exploration of how foundations with few or no staff engage in their racial equity journey, emphasizing the crucial role that race plays in driving equitable outcomes.

According to the report, past reports have demonstrated that 

  1. Intentionally including diverse perspectives leads to better decisions, more equitable outcomes, and an outsized philanthropic impact
  2. Racial equity and diversity influence all aspects of managing and operating lean foundations 

This year’s report focuses on how foundations with few or no staff engage in their equity journey.

Why Exponent Philanthropy Focuses on Racial Equity

The report details the organizations focus on racial equity, identifying race as a consistent predictor of inequities in society and particularly in issue areas where philanthropy aims to make a difference.

The organization also calls out the inequities present throughout the nonprofit and philanthropic sectors, calling attention to the fact that “Black-led nonprofits are less likely than white-led nonprofits to receive foundation funding. If funders want outsized impact in the communities and issue areas they serve, they need to understand how race and racism contribute to unequal outcomes.”

What Lean Foundations Can Learn About Racial Equity

The key findings of the report include: 

  • Demographic Influence: While foundation boards and staff are still predominantly White, there are encouraging signs of increasing diversity among lean foundations. A foundation’s demographic makeup is a strong predictor of its approach to racial equity.
  • Fluctuating Relevance: The relevance of racial equity to lean foundations’ missions has fluctuated over the past five years, peaking in 2020 before returning to earlier levels.
  • Impact on Grantmaking: Foundations that consider racial equity highly relevant to their missions are more likely to adopt effective grantmaking practices, fostering stronger relationships with grantees and communities.

Download and read the full report on racial equity in lean foundations.