Experiencing racial bias in fundraising

 

A report by the university of Cambridge and Clearview research for the Vodaphone Foundation highlights “a colonial aid model” to describe the fact that funds are donated to white-led local international offices rather than directly to civil societies (Civil society organization) run by Africans.

” Vodafone Foundation” was founded in 1991 with a simple mission to invest in the communities in which Vodafone operates, today the charity connects people and ideas with technology and funding – to help those who are already doing good work to achieve results faster, more cost effectively and with an even greater social impact.

The report reveals certain facts contributing to the racial bias in fundraising. It appears that funds are preferably donated to “northern based “(meaning abroad) NGOs, only 50% of bilateral aid makes it to Africa. CSOs are facing other multiple barriers other than discrimination and mistrust.

The main issues that create racial discrepancies are due to the pre-existing structures of the funding system which involve certain requirements, policies and practices that don’t leave room for diversity or inclusion. Donors find it convenient to just fund INGOs (International non-profit organizations) since they are already “adjusted” to their funding system. The donors don’t focus on building skills and capacity building for CSOs. Another aspect is that INGOs weaken the local CSOs byby moving their headquarters to Africa and registering as local organisations. Since the CSOs are less preferred or prioritized when it comes to funding, they found themselves unable to have control over their finances and plan strategically compared to their northern-based counterparts. (Vodaphone foundation, 2021).

 

 

“Decolonizing aid”

 

 

 

(Photo: A box of aid being shipped to Africa. Credit: Getty Images) Kennedy Odede, founder and CEO of the organisation Shining Hope For Communities, which runs a football club in the overcrowded Kabira settlement in Nairobi, Kenya where he grew up.

 

                                             https://www.bbc.co.uk/programmes/p09vxmnf

 

In his interview with BBC news, Kennedy Odebe, who is a member of the Vodaphone foundation, mentions the discrimination he has faced while raising money for his organization. According to him, 99% of the $150 billion funds for Africa go back to where it came from because of all the fees that must cover the international staff. He says that aid must be decolonized and suggests few ways on how the decolonization could be processed. He stresses the importance of digital information, training, education, and capacity building.

                     “You cannot just make for us rules in London” (Kennedy Odebe, BBC, 2021)

 The issue about racial bias when it comes to fundraising doesn’t only apply to developing countries. Stanford social innovation review mentions the same issue with a native American-led organisation in the US. The CEO was faced with mistrust, having to defend his organization despite being a grantee for over 25 years while his white peers don’t need to make such effort (Dorsey et al, 2020)

“That kind of privilege, that access, that trust—it’s pretty powerful, and awful,” says Mike Roberts, the Native American CEO in the story. “And that disparity is just what happened to us recently. I have similar stories for nearly every grant we go for.” (Mike Roberts, 2020).

 

Racial disparities appear as well with black-led organisations in the US. There is an obvious 76 % marge disparity when it comes to unrestricted net assets between the black-led organizations and their white-led counterparts, implying the fundamental issue of trust. White-led organizations get more access to funds, based on simply no other reason other than race or as many would say white privilege.

 

“Across Echoing Green’s 2019 applicant pool alone, looking only at applications from the United States, the disparities add up to at least $20 million racial funding gap between black-led and white-led early-stage organizations. The 492 organisations led by black applicants raised $40 million overall, compared to $61 million raised by the 396 organisations led by white applications.” (Dorsey et al, 2020)

 

The issue of racial disparities in funding matters is crucial when it comes to social change. It exposes racism, discrimination that affect any positive impact an create inequalities in society. It’s not a matter of who get the money, it’s a matter of equality and mutual respect build on trust.

However, things are changing in a positive direction, local CSOs are speaking up, despite the fear of repercussions, and are using digital platforms to address the issue and urge the donors to rethink and decolonize their funding system. Additionally, CSOs are thinking of ways to be more financially independent and take advantage of the technology in order to make social change.

The Vodaphone research have few suggestions that could solve the issue of racial bias in fundraising:

• The donors should reimagine their funding guidelines and procedures
• The donors help could be focused on digital technologies for the local CSOs, so that they can build future initiatives
• The donors could help local CSOs build self-sustainability.
• Local CSOs must invest and develop their leadership and ownership
• African governments could facilitate and support the locals CSOs.

More information about racism in fundraising can be accessed on:

 https://preparingthenextgeneration.org/preparing-the-next-generation/download-the-reports.html