How the Black Freedom Fund is Rethinking Philanthropy

Philanthropy Underinvests in Black Communities 

The creators of the Black Freedom Fund came together in 2020 to help solve a systemic issue: philanthropy’s underinvestment in Black-serving organizations.  

In fact, a 2017 study by A Philanthropic Partnership for Black Communities showed that Black communities received just 2% of foundation giving. 

Diane Manuel, the Vice President of Finance & Administration at the Black Freedom Fund, says this funding disparity stems from a lack of trust, not understanding the work of Black-supporting organizations, and an imbalanced power dynamic.  

Donors often want a say in how funds are used, even if their priorities don’t align with what the community needs. But in recent years, funding practices have started to shift, and the Black Freedom Fund is leading the charge. 

The Black Freedom Fund Invests in Black Communities 

Based in California, the Black Freedom Fund is a public foundation that invests in leaders and organizations at the center of Black communities. 

Why the Black Freedom Fund Prioritizes Ethical Banking 

On vendor and partner selection, Diane says they don’t just support nonprofits, “but also for-profit organizations that support the communities we care about. That’s why it's important to bank with Beneficial State Bank.” 

Diane says she hopes more high-asset organizations move their deposits to an ethical bank, even if they move small amounts over time. “If you want to align your assets with your mission, and you're thinking of your investments, why not think about your bank?” she proposes. She also acknowledges that this is a new approach for many. “It requires a different way of thinking — one that goes beyond financial return — to understand what an impactful return is and who we want to benefit from that impact.” 

Diane applauds the relationship-first banking approach that she receives from Beneficial State Bank. “Good bankers want to know you as a person,” she says. “Our client relationship team has spent time getting to know us, has helped solve problems, and shared opportunities." 

Advice for Challenging Times 

Organizations like the Black Freedom Fund face new challenges as the federal government pulls back funding. “There's no doubt that that has hurt communities, especially communities that have large numbers of Black folks and underserved folks.” 

Diane’s advice for these times: pivot and think about other revenue streams. And most of all, “Don’t equate losses with a devaluation of your purpose and your value.” 

Dive deeper into the Black Freedom Fund’s work and how you can support.