Minorities & Charitable Giving: Short Research Paper

Minorities & Charitable Giving: Short Research Paper

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Table of Contents

Table of Contents        

Abstract        

Defining Minorities in Philanthropy        

Implication of statistical data        

Challenges of Minority Population in Fundraising        

Biases        

Difficulty in understanding the cultural values        

Ineffective outreach to ethnically and racially diverse populations        

Highlights on the Minority Giving Trends        

Charities Response to Minority Inclusion        

Organization level        

Donor level        

Case Study: Asian Culture        

Giving trends        

Conclusion        

Appendix        

Religious diversity by population…………………………………………………………………….. 8

Language diversity by population        

Ethnical diversity by population………………………………………………………………….. 8

     Business firms owned by race………………………………………………………………………….. 8

Sample: Targeting South Asian donor’s for higher education giving        

Abstract

The paper examines the impact of the shifting racial demographics within the United States on fundraising. Members of minority groups are expected to outnumber whites in the United States by the year 2050, according to projections based on current population trends.

Raising money from minority groups is still not a priority for a majority of institutions, but changing demographics may persuade them to chart another course as the minorities (Blacks, Asians, Hispanics, and Native Americans) begin to give more. Charities will need to interact with donors who may not necessarily look like them, think like them, or act like them in terms of their giving habits.

The paper highlights the trends and examines ways in which charities can be proactive in embracing the new demographics. The paper looks at the specific case of: South Asian philanthropic habits. Through this, it attempts to deliver specific guidelines that charities can adopt when approaching the donors.

Defining Minorities in Philanthropy

The United States is gradually becoming more culturally and ethnically diverse nation. As minority groups grow in proportion to the United States population, charities are increasingly reaching out to more and more people with diverse backgrounds in terms of clients, staff and donors.  Thus it is important for charities to understand that diversity brings a different array of experiences and perspectives to the table; allowing an organization to better adapt programs for the ethnic population group and account for things that otherwise might have been missed.

A minority population can be defined in terms of:

• Religious Diversity
• Ethnic Diversity
• Language Diversity

Implication of statistical data^[1]

• Philanthropy in communities of color is likely to continue to grow as minority populations increase in size and accumulate wealth. 
• Diversity is viewed as a potentially valuable resource that the organization can use, not only at its margins to gain entree into previously inaccessible niche markets, but also at its core to rethink and reconfigure its primary tasks.
• New initiatives aiming for inclusion of minorities in philanthropy will continue to grow.  These initiatives are specific in terms of engagement and generate greater number of niche restrictive gifts. E.g.: President Barack Obama launched My Brother's Keeper Initiative to rally and guide government and philanthropic efforts on behalf of males of color.

Challenges of Minority Population in Fundraising

Biases

Biases^[2] can serve as barriers to understanding populations outside our own source of identity. These can be applied to fundraising as well and they are:

1. Exclusion and invisibility
2. Stereotyping
3. Imbalance and selectivity
4. Unreality
5. Fragmentation and isolation
6. Linguistic bias

Difficulty in understanding the cultural values

Developing an awareness of cultural values - such as philanthropic motivation, collective decision making, spirituality and respect for peers - is paramount in reaching out to diverse populations. The ability to understand and respect a prospective donor/client's belief system is crucial^[3].

Ineffective outreach to ethnically and racially diverse populations^[4]

Identifying ethnic characteristics and needs is an important early step in planning your outreach to ethnically and racially diverse populations.  Charities need to move out of their comfort zone in terms of outreach. For e.g. to reach out to a particular ethnic segment, charities may need to visit local community centers, seek the assistance of community leaders or reaching out to cultural facilities.

Highlights on the Minority Giving Trends^[5]

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Charities Response to Minority Inclusion

The changing population implies that the traditional fundraising principles have to be adapted to changing donor populations. Charities need to consider variations on their fundraising strategies. Prospect research strategies must be redefined to capture information that is relevant and suitable to diverse donor identification and cultivation.

Organization level

A review of nonprofit literature and research finds that the most important determining factor in the success of an organization’s diversity efforts is the commitment of its leadership to creating an inclusive culture^[6]. Eg: Work that builds organizational inclusiveness such as creating diversity committees, hiring consultants, initiating training and policies.

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