Change the Money. Change the System.
Who needs some good news today? Me, me, me! While we observe the unfolding of this week’s Capitol insurrection, we as individuals, groups, and communities are not without opportunities to act. We can push forward for a better tomorrow. Here is one example with three action steps.
Back in December, news outlets and colleagues shared the recent philanthropic gifts of MacKenzie Scott, an American novelist who is the 2nd wealthiest woman in the world. In late 2020, Scott donated $4,158,500,00 to 384 organizations across the 50 states, Puerto Rico, and Washington, DC. Yes, that’s 4 BILLION dollars to organizations who desperately need help. MacKenzie Scott is changing the face of philanthropy. While most of us do not have this kind of wealth, we can learn a few lessons from this approach.
First, MacKenzie Scott is using wealth that she accumulated to boost organizations without consistent access to this kind of wealth. Multi-million-dollar gifts are typically given to religious organizations and colleges & universities. However, most nonprofits are struggling to make ends meet each budget year, and this was before the pandemic. In a 2018 survey by the National Council of Nonprofits, less than 25% of nonprofits had more than six months of cash on hand. Can you imagine what these nonprofits are experiencing now? Whether it is an overwhelming demand of services or a complete shutdown due to restrictions, all nonprofits need help right now.
Action Step: I encourage each of us to look at the nonprofits we support and research the organization’s biggest gift. You might be surprised. How will you use your resources to support nonprofits serving as the front lines to this pandemic? Resources include volunteer time, money, and board participation.
Second, MacKenzie Scott let her newfound exposure to historically marginalized groups fighting inequities sink into her bones and change her, inside and out. She not only gained an understanding of the systems; she also learned about the day-to-day needs of those impacted like the need for “cash cards for farmers in Puerto Rico and direct deposits for furloughed workers without access to employer-based benefits.” Over the last year, I have seen so many people become frozen after learning about system inequities and stay overwhelmed at the amount of work to be done. Knowledge is not enough. We must show up differently. If we are listening, the knowledge and awareness of lived experiences will enter us and change us. That’s the power of finding resonance with humanity.
Action Step: We have all been exposed to new inequities in our lives, communities, and world. Now what? Each of us have ways to dismantle systems of inequities through our decision-making capabilities. An example is how we use our money. How can you focus your consumer spending on people of color and indigenous-led businesses and steer your charitable contributions to support dismantling systems of inequities?
Finally, MacKenzie Scott and her team took a deep look at the greatest needs and the biggest impacts. They looked at 6,490 organizations and further researched 822. Scott shared that the team put “438 of these on hold for now due to insufficient evidence of impact, unproven management teams, or to allow for further inquiry about specific issues such as treatment of community members or employees.” Wow, that’s stunning. What questions did her team to ask to learn about unproven management teams and community & employee treatment? I don’t know the answer to that, but I do know this – people matter. Specifically, employees matter as a nonprofit cannot serve our communities without employees. In the same 2018 survey by National Council of Nonprofits, 66% said that offering competitive pay was a challenge and 59% shared that employing enough people was also a challenge.
Action step: Nonprofits are known for lower pay. You can read more about that here. Every one of us can use our resources and influence to raise awareness for dismantling pay inequity and disparities. Ask if your employer pays a living wage. Speak up in your community about the need for higher pay rates. And give charitable gifts without restrictions to nonprofits. Employee pay is part of the annual operating budget, which is composed of unrestricted funds. Watch Vu Le discuss unrestricted funds.
Dismantling systems of inequity will take years and generations, yet that doesn’t stop us from acting now. And what’s happening in our country does not stop us from showing up differently every day. Today and every day can push forward for a better tomorrow.
Photo credit: Chuttersnap via Unsplash