Philanthropy can go beyond grant making to advance racial equity

DIVERSITY/PHILANTHROPY | Mary McClymont, WRAG board member and president and CEO of the Public Welfare Foundation, discusses how her foundation is going beyond grant making to advance diversity and inclusion by pushing for diversity in the investment managers that oversee the Foundation’s endowment assets. (Chronicle, 7/31)

As in the larger world of finance, the share of foundations that hire minority-owned companies to manage their assets is woefully low. A recent study commissioned by the John S. and James L. Knight Foundation found that in the $71 trillion asset-management industry, women- and minority-owned firms managed only 1.1 percent of the total assets. That’s even though those companies have achieved financial performance on par with those managed by white men.

This is especially disturbing because philanthropy, after all, is the sphere in which one would normally expect a strong push to bring mission-related concerns to the investment arena. For example, the Center for Effective Philanthropy reported in 2015 that 41 percent of foundations engage in impact investing. Unfortunately, however, foundations are paying only minimal attention to the diversity of asset managers, as compared to other big investors, such as public pension funds.

INCOME | How restaurants and other businesses going cashless will further marginalize low-income individuals with no credit or bank accounts. (GGWash, 7/31)

FAMILIES | This Prince George’s County nonprofit is helping domestic violence survivors rebuild their lives. (WaPo, 7/31)

TRANSIT/WORKFORCE | Uber recently introduced changes to its policies to benefit drivers, but workers in the District still see issues. (WAMU, 8/1)

EDUCATIONThe Unexpected Value of the Liberal Arts (Atlantic, 7/31)

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