Holding Foundations Accountable for Equity Commitments

Abstract

Without substantial shifts in decision-making power and how they act in relation to others, foundations may be making equity and justice promises that they ultimately will be unable to keep. * In this article, we advocate for a transformation in how foundations conceive of and operationalize foundation accountability, such that communities and grantees hold funders accountable for living up to their emiitv commitments officers and program teams centering equity in the way they do their work (e.g., see the range of foundations represented in programmed sessions at CHANGE Philanthropy's Unity Summit, CHANGE Philanthropy, 2019). According to a Center for Effective Philanthropy (CEP) report published in late 2020, almost 60% of foundation CEOs reported that their own board was more than 75% white (CEP, 2020). The Problem With Accountability in Philanthropy In exchange for tax-exempt status, U.S. government regulations require little of private foundations other than that they give 5% of their assets annually to qualifying nonprofits.2 Foundations ostensibly are accountable for contributing to the "public good," but structurally they are unfettered by any real constraints on how they do that or for whom. Being sealed off from authentic grantee and community scrutiny and contestation is a structural feature of the sector, as foundations are formally obligated to no In exchange for tax-exempt status, U.S. government regulations require little of private foundations other than that they give 5% of their assets annually to qualifying nonprofits.