Potential on the Rise: African-American Family Foundations

By Marybeth Gasman, Ph.D.
University of Pennsylvania

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Family foundations are rapidly increasing as a venue through which to give philanthropically. These institutions are of particular interest to African Americans, who prefer to put their trust in organizations that are close to them and that aid the surrounding African-American community. In recent years, scholars and practitioners have paid attention to notions of giving in black communities—both why African Americans give and to which issues and causes they give. However, very little attention has been paid to the growing number of African-American family foundations in the United States.

According to a new research that I conducted, there are 103 African-American family foundations in the United States, with 75 percent of these being founded by an athlete or in honor of an athlete by his or her family members. Roughly another 15 percent were created by musicians or actors and the remaining 10 percent by business people and doctors. Overall, the founders were motivated to start family foundations for three main reasons: the desire to give back, the longing to have a significant impact on the world and the wish to have an impact on disadvantaged children. Interestingly, and consistent with other research on African-American giving, the phrase “giving back” was used by almost every family foundation, echoing a long history of blacks reaching back to help those still struggling in their communities.

The African-American family foundations, which were, for the most part, created during the Clinton presidency, are located in cities and states with large percentages of African Americans. The majority is in Los Angeles, New York, Atlanta and Chicago, with a few scattered throughout the Midwest and the Eastern Seaboard. African-American family foundations have, on average, assets less than $ 1 million, and more than 80 percent had between one and five full-time staff and no part-time staff. Interestingly, roughly 40 percent of the family foundations had boards that ranged between 12 and 35 people, even when their assets were insignificant. This finding may reflect the limited opportunities that African Americans have to sit on foundation boards overall. Family foundations offer a unique opportunity for leadership. That said, the boards were quite diverse with regard to racial and ethnic makeup; most of the family foundations had a firm commitment to diversity. Although most board members committed to the family foundations financially, foundation leaders saw a great benefit in having board members who could give of their time and talent as well or instead of monetary contributions.

The major focus of more than 80 percent of the African-American family foundations was helping others achieve a better quality of life. Roughly 75 percent wanted to support disadvantaged youth. According to a 2006 report by the Foundation Center, an interest in youth is consistent with the goals of family foundations in general. Nearly 35 percent of the African-American family foundations supported scholarships to individuals or institutions, caring deeply about young people and their college aspirations. This finding is consistent with a 2004 report by the 21st Century Foundation, which found that almost 60 percent of black foundations, not necessarily family foundations, included education as an area of interest. Additionally, close to 25 percent of African-American family foundations placed an emphasis on funding research and practice related to health issues, including HIV/AIDs, diabetes and sickle cell.

As African Americans acquire more wealth, we are likely to see an increase in African-American family foundations. Myriad research shows that African Americans are inclined to give, and with a historical mistrust of organized philanthropy, the family foundation is a likely outlet for giving. To prepare, organizations such as the Council on Foundations, National Center for Family Philanthropy and local and regional community foundations need to more aggressively reach out to African-American family foundations. These family foundations could benefit greatly from the financial management and educational offerings boasted by umbrella organizations. Likewise, fundraisers should not underestimate the potential of African-American family foundations; in 2008 African Americans overall had $890 billion in buying power. It seems like enormous potential is on the rise.

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