Redirecting the Streams of Charity : Needs highlighted by the riots call out for new priorities in personal and corporate giving
The Los Angeles riots have prompted a generous outpouring of individual charity and corporate philanthropy that specifically benefit poor individuals and minority communities. As the city rebuilds physically and socially, this new emphasis on reducing poverty and increasing respect for diversity should provide a permanent model for giving.
Corporate philanthropy has a long history in Los Angeles. Now, major foundations typically donate $125 million annually to the arts, education and other causes. Businesses and individuals also give millions each year to United Way.
Where does most of that money go?
Some minority groups complain that few of those dollars help the people who are most in need (although the Irvine Foundation has been applauded for funding community groups working in riot areas).
Local activists contend that less than 10% of major corporate philanthropy went to community-based, minority organizations from 1984 through 1987, the most recent period for which data is available. However, that analysis, by the Southern California Coalition for a More Responsive Philanthropy, has been challenged by several charities, including United Way.
In recent years, United Way has shifted significant resources to programs aimed at low-income people and minorities. That trend is expected to accelerate under the Greater Los Angeles chapter’s new president, Herbert L. Carter, an African-American. United Way deserves credit for becoming more responsive to the needs of poor people.
Where charity should be directed has long been argued. Corporate leaders have every right to choose the objects of their largess. Some philanthropies assist arts and culture exclusively. Philanthropic foundations in many cases must adhere to priorities set by donors and thus have little discretion in determining where the money is to be spent. Some foundations have strict criteria with built-in biases that favor old, traditional and well-established agencies or programs--to the detriment of new or fairly young efforts.
The old priorities no longer satisfy the needs highlighted by the riots. As Los Angeles continues to heal, foundations and charities must avoid “redlining” their donations. The minority coalition’s report should prompt a healthy debate that leads to new philanthropic priorities intended to better the future of the poorest among us, an achievement that in turn would enhance the future of all Angelenos.